The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-03-07
FINANCIAL REVIEW.
Horny Clows's Weekly Letter on
tho Money Situation.
The STOCK MARKET is FLOODED
With Mysteries aud Rumorso o Gisan-
Ito Dcals--Tiic silver Question n
Factor that Is Again Bccomipg IN
~ilucntial In Wall strcet..A Hundred
Million In Securities Returned
Within Fourteen Months.

NEN LUX, NldrCu O.-lHU EtOck mar
ket Is flooded with mysteries" and
rumors OF gigantic railroad deals upon
an unprecedented scale MS being either
in progress or already accomplished.
Details Of these have filed tho daily
press for weeks past, but only such
operators rs are within tho charmed
circles appear to know the true inward.
ness OF many OF them. AS a conse-
qucnce, Judgment passes for little in
estimating the future value Of many
securities, for tho market Is almost
wholly under tho control OF compare.
lively few persons, whose operations
must inevitably influence tho value OF
thousands of millions Of stocks and
bonds. Never in the history OF Wall
street was tho value OF such an onor.
mons aggregation OF securities 80 ALSO
lutely under tho control OF so small n
circle as at this time. Such q state OF
affairs cannot DO considered s~atisfac.
tory; because not only is speculation
likely TO be unhealthy stimulated, but
tho future OF these combinations gives
birth to n variety OF uncertainties
which, whilo they may elevate prices,
will certainly not add to their stability.
There Is little question but that in the
end some Of these combinations will
work for the best interests OF all con.
cerned; but in proportion as their re.
suit means increased profits to capital
without corresponding benefits to tho
masses, and SO far as their effort is to re-
strict competition we may, sooner or
later. expect tho awakening OF active
public hostility. Aggressions OF this
sort by capital are lure to be followed
by reprisals on the part Of labor; while
tho d%emagogue i'll politics requires no
better material for his anti-monopoiy
cry than these combines to restrict
competition, and the labor agitator finds
shis best argument for a strike in the in
creasing profits OF capital.
Reasons such as these cannot be ig-
nored in estimating the distant future,
but it is the moro immediate future
that Wall street is now concerncdabout.
While the situation presents many nat
ural conditions Of great strength, es-
pecially those based upon the develop
ment Of our natural resources which
tempt us into being at times too opti-
mistic, still there are some very sugges-
tive features which call for prudence.
Although stocks are in strong hands,
the public whose operations are neces-
sary to a healthy bull market have not
yet taken vigorous hold, andthe cliuues
responsible for recent advances have
been encountered with millions ofstocks
sold by foreigners which they never cal
culated upon II Europe takes back
these stocks they will be much relieved,
II not they will have more to sell. In
either event they have q large under
taking before them to induce the public
to take their stocks at the higher range
OF values. Circumstances, however,
favor them in many ways, and when this
unloading process starts in VIC may ex-
pect some lively and cratic movements.
There is II other factor which is
again becoming influential in Wall
street, and that is the silver question,
Already it reproducing important cf-
fects which had not been expected 10
appear at this carly stage in the but
workings of the silver act Of 1890. Tho
renewal OF the exports OF gold has
proved an e%ye-opener. During tho year
1891 our exports OF goods and specie
exceeded our imports Of the like itema
by slS5, 600, 1000, and for the tirsttwo
months of 1898 fully the same rate Of
excess has been maintained. It might
have been expected that under such
circumstances we should now be i'm
porting largo amounts OF gold to settle
this large apparent trade balance in
our favor. The fact is, however, that
we arc called upon to export gold. How
are We to account for this extraordinary
movement. After setting off, against
this creditor balance OF some 215 mil.
lions for the last fourteen months, all
that may have accrued against us in
Europe on account Of interest. freight
on imports, und~ervaluations, etc, there
ought to DO a balance in our favor OF
something like lis millions; for an
average OF the last decade, about S5'mil-
ions surplus OF exports V imports
has sutliccd to liquidatc these debtor
items. There arises from these facts
the strongest possible presump-
ton that, since the beginning Of 1901,
considerably over 100 millions OF our
securities have been returned from
Europe; tor the credit balance has un.
q~uestionably been settled, and there is
no other way in which it could have
been done except, by. the return OF
stocks, bonds, etc. This relux in our
securities dates from the period OF the
enactment OF the last'silvor law, which
doubled the government purchases of
silver. 1t is coincident with an OPT
MON everywhere entertained in Euro
pean financial circles, and emphasized
by the foreign press, that the course OF
legislation and the bias OF popular OPT
Mon in this country indicated aeravc
possibility that our currency system
might become subject to q general de-
probation OF value, which would cor
r~espondingly diminish the value of all
our securities not made specifically pay
ablo in gold. As Europe holds many
hundreds Of millions OF American sccu-
rites of the worry kind that would DO
subject to such deterioration, it is moth
ing more than might DO expected that
our obligations should DO, returned in
extraordinary amounts, and the more so
rs the New York market has been in a
conditionto take them without,suTcr.
ing serious reaction.
Over 100 millions OF securities return.
ed within fourteen months! This is the
startling fact Just dawning upon the
perception OF Wall street; and it natu.
rallysuggcsts some very grave inquiries;
such for instance rs how much gold
should we have had to ship in payment
for these returned securities, had we not
been favored with IN extraordinary
surplus Of cereals which Europe hap