The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-11-27
Henry oiews's Weekly Letter on
the Business Situation.
MAIN FEATURES OF The PAST WEEK
Tho Bull Element in the Ascendant
on Wall strect-waitInG the action
oECongress on tho TariG aud Cur.
renoy-Hopes that the Worst Effect
Have Already Been Felt.
corre,rona.n,e ofMe Ir,e,ti1,ntcr.

ldNC liNOlNCu LuSuIsG'NSss AfSAS ''HS
been no special stimulus from any quar-
ter, and London'a present disposition to
sell rather than buy has been a slightly
adverse element. The fact that, under
such circumstances, the bears" should
have hurriedly covered their short sales
and thereby caused an advance in prices
is significant Of a mistake in their esIi'
mate OF the temper und underlying
strength OF the market.
The "bulp element is plainly in the
ascendant, and tits steadily gaining In
numbers and force. 1t has behind it
not only majority Of the outside oper-
ators, but also the powerful capitalist
class connected with corporate enter
prises and who have increased their
holdings OF securities during the late
panic. This latter class have faith in
their holdings, because they ioresee
reasonable prospect OF an Improvement
in the value OF their properties as the
recovery OF business progresses towards
normal conditions. Nor have they lost
confidence in the ultimate revival OF
the European demand for our secnri-
tics; which, so soon as the impending
legislation upon the currency and tariff
questions is completed, can scarcely
fail to respond to the fact that our in
yestments will henceforth rest upon a
gold basis as solid as that OF the most
conservative nations OF the Old World
They appreciate the fact that political
lv, as well as in the convictions OF
vast majority OF the people, the silver
sentiment has been defeated and up
rooted, and so eilectually that there is
no prospect OF its future revival. This
is a factor in the status OF our invest
ments which none more fully appreciate
than the men who stand behind our
great aggregate OF corporate enterprises.
1t is not easy to Over-estimate the
Importance, to the future OF the market,
OF the backing OF this important class.
This support is more to be depended
upon, because it is likely to be weaken
ed lat least for some time to GOMEZ
through the competition OF new enter
prises. The misfortunes that.have late
IN bGl0llGn lhhuollihl anu NlhAAbk wv
porations are against the creation OF
new undertakings OF that character.
And although there has been an unusu-
ally long comparative cessation OF new
railroad construction, there are no signs
OF an early expansion in that line OF en-.
terprise; and this fact has an important
bearing upon the valne OF existing rail-
road properties, as it solar insures them
against the bad effects OF reckless COM
petition for traffic. Capitalists OF this
class can do nothing better than to
stick to their present large holdings I'M
til the whole country has recovered to
n condition OF healthy activity, when
thew may desire to realize in order to
undertake new enterprises. We there
fore conclude that the Stock Market
will have the support OF this important
class for aconsiderable time ahead. For
so long as that state Of things continues,
tho "bears" may be expected to be OF
little use except to serve as the daily
ailment for the lusty "bulls"; and, no
unforeseen adverse accidents happening,
tho latter are likely to have d registering
time.
The prospective money market must
have an important bearing on the future
of prices. II is not easy to take in at
one glance the full meaning OF an &C.
cumulation Of ST., 800, 900 of surplus re-
serve in the New York banks, concur
rently with large like increase IN the
banks of the country Mt large. 1t is
true that this unprecedented abundance
of money reflects continuance OF
the depression OF business that resulted
from the panic; but it is not less true
that it also signifies vast amount OF
dislodged capital awaiting reinvestment.
1t is also true that it means a forthcom-
ing anxiety, on the part Of the banks
and other lenders to put out their
funds for such temporary use as Wall
street Is always ready to accept. And
it further means future exceptionally
low rates OF interest, not only on "call"
loans but also on tho 'time" loans
which large stock exchange operations
REQUIRE. The situation thus insures, in
an exceptionally large degree. all the
conditions essential to "bull" cam
paign OF unusual proportions.
At this moment, Wall street is wait
| ing the action Of Congress upon the
currency and the tariff. This attitude,
h owever, is due moro to disposition
| to take brief respite for rest and OBJ
| servation, than to any apprehension
that tho settlement OF these questions
may disturb public confidence. As to
currency legislation, it is felt that, in
any event, the present relative album
dance OF currency will take care Of all
monetary wants for some time to come;
while all the symptoms forthcoming
from tho Washington committees indi-
cate favorable prospect that ways will
be found for supplying a sound and
elastic form OF bank currency in such
measure as tho business OF the country
may require. On this point there is at
least no disturbing misgiving.
The general tenor Of the tariff bill to
be reported By tho committee on ways
and means at the opening OF Congress
is now very generally understood. Its
purport has certainly not tended to
confirm tho tears that had previously
been entertained among manufacture
crs. In respect to raw materials, it
makes important transfers from tho
| dutiablo to the free list; which can only
DO regarded as valuable gain to certain
large industries. Contrary to common
general expectation, the changes OF
duty on manufactures express n liberal
Interpretation OF President CleVeland's
predictions in favor OF moderate re-
duotiona, aud the extravagant demands
OF the Democratic doctriuaires are for
tho most part disFegardcd. The OLE
ment OF protection in the tariff is GER
tainly reduced, but it still, as rule,
seems to remain protectivoi except pos
sibly to class Of manufacturers who
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