Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1892-02-08
NEW YORK MARKET.
Deeived BY Banker ciews-A General
Raise In Values Inevitable.


Raise in Values Inevitable.
NV YoRK, Feb. 7.--During the past
week, the course OF businese at the
stock exchange hes been quiet. irregu-
lar and. on the whole, towards lower
prices. The market has, for the mo-
Iuout, fallen into the hands OF the pre-
fooa1onal traders, among whom. -
uoual, the sbear" temper predomin-
afnA
There 10 no suficient reason for con-
STRUNG this change of temper ~ mean
lpg that the speculative feeling has col
lGpoed, or that prices are destined 70
xpy important reaction. Is means
slnply that the spirit Of speculation,
- the moment, is conservative. and
hat the "bull" leaders, approaching
ois. deem it wiser 70 encourage an un-
duiatIng advance. with its ups and
downs, rather than to forcc prices In
the direction of strai ght upward line.
The extraordinary ease IN the loan
market can hardly possibly fall to pro-
dQce On active, II not excited, specuia-
ton. When an extreme ease IN money
comes concurrently with general de-
pression in business. il may fail TO de-
yelop speculxtion; but when--as 10 the
cnse at PRESENT. happens along with
large crops and healthy state OF af-
foirs at large, 1t almost inevitably car
ries along with it general rise IN the
value OF securities as we'll as Of other
ihvestments. There are two especially
potent monetary influences at present
setting as lever on the market. In
the first place the farmers are devot-
lpg large amount OF the proceeds OF
their abundant crops TO the llduida ton
of Their farm loans; which has the
double effect OF creating q fresh &C.
nand for investments from the holders
of the liquidated mortgages, aud OF
causing . large accumulation OF cur
rtncy ct this and other Eastern Gen.
tres.
The s'bears'' advance as their chief
argument against an upward move
inent in prices that. the world over
affairs are in y reacticnary condition,
which, they say, is attended with
commercial depression which Is incom.
uatible with "bull" market for &C.
curities. There is eemblance OF truth
in this, but nothing more. The reason.
ing would be sound If the depression
10 which it refers was the consequence
df panic and its usual attendant wide
sbread bankruptcy. 1t 10 true that the
Harlng suspension and its surrounding
circumstances were sharp shock u
ljusiness in all parts of the world; bul
there was nothing like the contraction
Of credit and the losses from fallurel
that usually attend the great periodic
panics. 1t Was 3 shock, but little more
and It's effect has been principally te
create conservation, to check really un
sound enterprise, and to eliminate
Wild speculation at q few diseased spoti
in South America. rather than TO pro
duoe q general violent DISCRIMINATION
Of trade ard finance. This amounts tC
: much lee scr1om reactionlthan thai
which ordinarily succeeds 2 genera
panic. Its effects are not only les
severe, but are also briefer inItheir dur
alton. There exists in Europe q con
traction of unsound business and spcc
ulation, which is shown in the decrease
of the commerce of Great Britain anc
that of some Of the continental ma
tons; but there is mono of the excessive
caution that denies capital or credit fol
meritorious undertakings.
The only dark spots in the home
situation arc the depression Of business
and the backwardness of payments a.
the south and the dullness of trade or
the Pacific coast; both OF which ar,
mainly the consequences OF undue ex
psnsion of speculation or over-creatlens
of corporate capital IN the respective
sections. HENRY CLEws.