The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-03-02
The Future Of the Stock Market not
so Brilliant as Some
Believe.
Extraordinary Activity OF the Last
Few Weeks Restricted to
Professionals.
Revival of Gold Exports n Source of I'm
easiness-General Situation Lit
f. za tie Changed.

NEW York, March 1.-lSpeclal. -Ihe las
circular issued by the banking house o.
Henry Clews & Co., II. ID and Is Broad
street, and So Wall street, says: The i'm
mediate future Of the stock market is not
SO conspicuously brilliant as some OF the
more powerful interests In Wall street
would have others believe. For some time
past there has besn a great deal of mission
AIRY work through numerous brokers on be-
half Of some Of the big holders of stocks,
who are ANXIOUS to Tighten their newly &C
CURED load and take profits; but 30 far
their efforts BY this means have not been
entirely successful. AIDED by she big coal
to mark up the prices of those shares IN q
most sensational manner, but they failed
notably in making q market for their hold
ings at the new prices. AS q matter OF fact,
they have simply put up prices upon them
selves, and there consequently remains a
roal danger in the speculative element
which promoted the rise. The truth is, the
outside element is still unimportant. The
extraordinary activity of the last few
weeks was mainly restricted to professionals
and large holders, who. to support the
market. were obliged to take many millions
of securities from foreign sellers at ad-
vancing figures. London freely unloadsd
spon New York whom excitement was at the
highest pitch, and seems inclined to CON
tlnue that process. As a consequence Of
such movements az these, the coal stocks
have been concentrated into q few hands
and. though ordinarily such a course of nf-
fairs strengthens stocks, in this instance
the case ia different, for the whole scheme
is so vast and involved in SO much ancer-
tainty that the difficulty of avoiding large
blocks of securities coming on the market
is greatly multiplied, especially as present
profits are already an irresistible tempta-
ton to many holders. 1t requires no
stretch of the imagination, therefore. to
conceive of circumstances which would
precipitate heavy unloading of coal shares.
Moveover, on the stock exchange a certain
degree of disappointment has followed this
Reading deal. mainly from the fact of SO
great an event s~xerting SO little influence
for the better upon the market IN general.
The insignificant advances on other shares
while the coalers were bouncing upward
were conspicuous. and that there was COM
excitement subsidized was even more
significant. There is but one ex-
PLANTATION for this state of affairs,
which il, the public have not taken an &C
tive part in the recent speculation. The
reasons for their absence do not call for ex-
PLANTATION here. IL IS sufficient Tor present
purposes to recognize their absence and the
consequent lack of stability to the bull
movement. Other matters connected with
the coalers also suggest prudence IN dealing
in them. Besides the possibility of further
liquidation, their immediate course is
likely to be all the more cratic because of
the questioned legality Of the Reading
~lessees of Jersey Central and Lehigh Val
ley, there being every probability that the
contract will be vigorously contested in the
Psnnsylvania courts-the Penngylvania
RAILROAD and Mr.. Powdsrly, who have insti-
gated the attack, being no mean antago-
nists. No doubt tho gentlemen who
planned the deal anticipated all these and
many other contingencies, and it would be
unfair to their sagaclty to assume that they
had not; neysrtheless,i in the minds of many
people the contest will lessen confidence.
and there is no telling how far public opin-
ion may pc reused into hostility by the
evidently feared by the primo movers in
the plan. Uncertainties like these are
splendid capital for the average trader;
hence the cealers may be Il fruitful means
of speculation for some time to come.
One other source of uneasiness is the
revival OF GOlu exports. lne present con-
dition Of the exchange market is more
favorable to gold shipments, besides
which the season for an outward movement
is close Mt hand. There is no immediate
danger of free coinage of silver, and it is
OF note that AuBtria's special de-
1uands, which are presumed to have in
duced recent shipments, cause no %uneasi-
ness abroad. In spite of these facts, how
the market, in its present weak, stag
condition, is naturally sensitive to
any important demand upon our gold sup
ply. The ordinary speculator sees the gold
leave; confidence 10 impaired, and it only
remains for the professional bear to exag-
gerats the situation and frighten holders
into parting with stocks. This is simply
an instance of where the effect may be out
Of all proportion to the cause; bat the e1-
parlenced operator takes note of excep-
as we'll as the rule, and acts accord
lnely.
In the general situation there is little
If general trade would improve
there might be some room for encourage
but this is still wanting. The future
IS promising; only We ave been living
!ong enough upon high and unfultlled e1-
pectations. A period of disappointment
naturally follows, from which at II later
We shall of course emerge. Mean
while, the stock market is unsettled, and is
likely to exhibit a declining tendency until
new life is infused by favorable develop
Of some sort.