The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-05-08

Special Correspondence ofths IRieligeResE.
New YoRE, May 6,-Henry Clews &
Co.'s circular says'
AT last, the accumulated elements OF
distrust have eliminated in u crisis on
the stock exchange, 1t could hardly
have been otherwise, The steady
drain OF gold from the treasury and the
banks, extending persistently oyer the
last four months, was, apart from other
adverse influences, sufficient to strain
severely the ability OF speculative hold
era OF stocks to carry their loads, That
strain has been borne, with compara'
lively little yielding, through a reduc-
ton oil some torty-tive millions in the
loans OF the associated banks, which
has been an evidence OF the intrinsic
strength OF the market; but, in the alb,
sence Of any signs Of immediate relief
OF the pressure, tho banks and the
holders OF stock have alike yielded 10
their fears, the former calling in loans
aud the latter unloading their holdings,
until virtual panic has seized the
market.
As might have been expected, the
"industrials" have proved to be the
chief point oil fracture. Those issues
have constituted Il large proportion oil
the speculative transactions on the Tx
change during recent years, and have
been inflated by manipulation immeas-
urably beyond any conservative esti-
mate OF their intrinsic value. Owing to
the unsound basis OF their organization,
they have found little Judgment among
investors, and have been principally IN
instrument OF speculation us between
| the original holders and outside apecu-
lators. Under these circumstances,
they have always been treated as unsat-
islactory market collateral, and conse'
! quently the recent calling in Of loans
has very sharply Disseminated against
them. The event is nothing more than
has been expected in the event OF such
conditions as have now happened, and
among conservative men the event is
viewed rather US a drastic form of relief
than as q real disaster, The break elm
mates u loug-felt element OF danger
from the market, and gives to securities
OF higher intrinsic merit q fair chance
for realizing their true value,
Outside the "industriats," tho market
has stood up remarkably well. The
entire list has been sympathetically af.
fected; but there is good reason to hope
those arrangements will prove only
temporary. The railroads are conceded
to be in excellent condition and the
market is by no means o~ver.supplied
with that class Of stocks. They have
had to contend, at the moment, with q
supply coming from mercantile Dor.
rowers who, under the contraction Of
discounts, find 1t convenient to realize
upon this class OF assets; but those
sales are a CONF aratively unimportNnt
factor. In fact, the ordinary run OF
securities are regarded MS in a sound
and satisfactory condition and, at the
late current range OF prices, have been
readily accepted rs collateral. They
have Tor some timo suffered in sym.
pathy with the distrust existing against
tho 'industrials," which has spread a
| paralysis of distrust over tho whole
market; but now that the trust"
bubbles have exploded, the market will
naturally assume n healthier tone and
railroad shares may be expected to find
q iairer recognition of their special
merits. In fact, the break puts the
whole market in q sounder and safer
condition.
The general financial situation has
not been injuriously aggravated by the
crisis; on the contrary, it has rather
been improved, through tho elimination
OF an element OF disturbance and dis
trust in the loan market. The banks
show less apprehension OF arrangement
from gold exports and from the position
OF the treasury, and seems disposed to
act with prudent liberality to their com
morcial customers. Indeed, the cur
tailmont of discounts appears to como
less from the city banks than from New
England and other country banks, who
have taken the situation with more
alarm than the conditions really war
rant. This, however, is an error which
further reflection may easily correct.
The demand on the treasury for gold
for export has abated, and at the mo-
ment shows no marked tendency to-
wards q revival, and the gold reserve is
consequently better maintained than
has been expected. Still, however, tho
exports OF produce falls much below the
requirements OF foreign exchanges and,
so long as that continues, there can be
no assurance OF escaping further ship.
ments OF gold. It would seem reason
able to expect that the destructive et.
fects of the drouth in Great Britain,
France and some other parts Of Europe
will cause an advancein breadstutts and
a consequent revival in our exports,
which is the thing above all else needed
to adjust the abnormal condition Of our
foreign trade balance.