The Helena independent., 1892-06-08
THE FINANCIAL REVIEW.
Bears Take on New Lease Of Life
and Maintain Their
Ascendsncy.
i a. + II.
Foreign Exchange Muolr Strength
ened by the Sale Of Stock
for London.
Supreme Condition AfsotinE the Stock
Market II the Crop Prospsot-GrsA
Cunsumptlon Of Iron.

Cvnsumptlon OF Iron.
NEW YoRx, Juns 7.-[Spscial.1 THE last
circular issued By the banking house ot
Henry Clsws & Co., II. 13 and 10 Broad
street, and IS Wall strees, says: During the
past week the ''hears'' seemed to take new
lease Of power and maintained ascsndency.
Early In the week London became free
tseller on this market. a. some suppose
partly on ''short'' account. and principally
on Louisyille d Nashville. about whose
financial condition foreign holders are re-
ported to have received advance Informs
tion. This opened weak spot. TO which
the "bears' gave prompt attention. A tom
porary injunction issued in New Jersey
against Reading also caused some selling Of
that stock which. however. was found to bs
we'll supported. The professional traders
paid some special attention also to Rock
Island and Burlington q Quincy. probably
TO Offset the fact Of both stocks being very
largely oversold. These. however, were in
cidents Of no great intrinsic importance,
and the matter OF chief interest in connec-
tion with them was that the "bulls'' should
they had upon the tone of the market. On
Thursday, however. change oame over the
spirit of the dream of the "bears." The
leading seller seemed to have concluded
that the short" interest was growing quite
dangerously large, and hence there
was general buying movement to cover
those contracts. News Of . favorable
change in the weather throughout tho great
crop belt was accepted a. warning against
being caught short. and that being the ono
condition necessary to give courage to the
"bulls." the market stiffsned at once and
took an upward turn. Should the weather
reports continue to be Of tho same tenor,
the market 10 likely to respond in the form
Of better prices.
Sales Of stock for London account during
the first half of the week strengthened the
foreign exchange market. and to that
source of demand for bills must be added
tho usual requirements for the June settle
ments Of balances. These facts have led
to the renewal of moderate exports of gold;
but that, being an ordinary incident of the
June exchanges, has already been antici-
pated as to its effect upon tho market.
With surplus Of 4,5OO. 600 Of bank re-
serves, against $7,5OO,OOO q year ago. the
export of few millions of gold can be a
matter OF little importance to the local
money market; while BY increasing still
money at London and on the continent, its
ultimate effect can only be favorable ia re-
vivinR the foreign demand for our sscuri-
ties.
The supreme condition affecting the
stock market 10 tho crop prospect as in
fnouNo hv Tho and hat
factor il now less uncertain than it was a
week ago. Expectations az to tho wheat
crop are improving, but are still strictly
moderate. At the moment, it seems proba
BILE that in some sections the crop may be
n Roo few w1S rs., ooa eood
ties may easily change within q few days
for better or for worse. The June report
of the department of agriculture will be
forthcoming IN few days, which will
afford moro definite data than anything
yet forthcoming as to the prospects of win
tor wheat. The prospects OF spring wheat
and of corn must remain in tho dark until
those crops have reached the earlier stages
Of development. But accepting the most
moderare current expectations as to the
wheat crop, the heavy surplus left over
from last year may be expected to bring up
mensions. That cannot be said of the corn
crop. and that is the fact which weighs
most heavily on the stock market.
The general trade of the country, except
ing the cotton states and California, may
be regarded as reasonably prosperous. The
increase of railroad earnings shows that tho
volume of products moved exceeds all pre-
cedent. MerchsntinR. though conducted
with conservatism and perhaps generally on
moderate profits, is yet active. In certain
trades. there ia an undoubted over-supply
of products, notably 20 in the iron trade, |
woolen manufactures, and cotton goods. In
the two former, the trouble ia perhaps
principally due to the tariff having drawn
ont increased investments in mills; but to |
the public at large thee 10 an indirect |
benefit in cheap goods, anl to merchants the |
advantage of increased sales, whilst the |
parties responsible for |
the over-doinR-must submit to the newt |
able process of wedding out those least |
fitted to survive the ordeal of competition. |
In all this, however, the suffering ia con-
fined to one restricted class. while all other |
are indirectly benefited. The cheapness of |
iron is creating an unequalled consumption |
Of that staple and the railroads are benefit
ing through being ablo to make liberal i'm
provements at much below the usual rate of |
cost.
Taking the situation and the prospects AZ
a whole, We construe them a. fairly favor
able to securities; but at the moment there
are certain undeveloped factors which tend
10 hold conservative operators in check;
and we therefore, for the present, counsel
buying on drops and realizing upon modsr-
ate profits.
a