The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-05-15
FINANCIAL REVIEW.
Henry olews's Weekly Letter on
the Money Situation.
EFFECTS OF The RECENT CRISIS
In 'Industrials"-Nine of the After
Effects, all Tending to Induce FIX.
tensIvo Selling New Conditions
Looming Up-The Only Safe Policy
ut Present One of Caution.
sp,oial corr,,pon,l,nce on Intellioene,,.

Special Correspondence oftAs InteAiseneer.
New YoRK, May l3,-FolloWing the
crisis in the 'fndustrIals," the past
week has developed o series OF after
effects, which have demOEalized the
general market and produced extensive
realizing on "lonG" stocks and a general
instability Of prices,
Among those secondary results, the
following may bo enumerated as the
princlpaIi-Q,) A general weakening of
margins among speculative holders; (2,)
A more or loss general demand among
brokers for an increase OF margins be-
yonI the ordinary limit; az The dis
inclination OF many brokers to take
new accounts until the situation be-
comes more settledi a. The closng-up
OF accounts where operators were unable
to keep up their margins; (5.) The in.
disposition OF money lenders to renew
extiring time loans or to contract new
ones; (6) The natural disposition OF
large and strong holders to dispose OF
some Of their stock in hope OF getting it
back at lower prices upon declining
market; ~ The weakening OF some
brokers and the desire OF others to keep
their customers operations upon a con.
Rervative scale; (S.) The frightening OF
cautious operators out oil the market;
And TO- the disposition Of judicioua
operators to realize on tho moderate
rallies.
Each one OF these aftcr.effects has
tended to induce the extensive selling
otthe past week, to which has been
added the sensational effect arising
from failures and rumors Of failures OF
firms and banks, and q comparative
cessation OF the London demand for
our securities, besides the dlscouraglng
result of another great bank failure in
Australia. Under these circum.
stances, the unsettled feeling that has
followed the crash in the 'industrials"
Is no matter OF surprise. Cool heads
have anticipated it, and wise mon have
held themselves prepared for it, and
hence the weakness OF the market has
produced neither alarm nor despond-
enGy. Among the conservative and
well protected class who always consti-
tute the backbone OF the market the
present phase is accepted as one OF
liquidation, with all that goes with 1t.
No further serious effects are expected
from it, nor is 1t supposed that the eX-
listing effects will Immediately disap-
pear. The state upon which tho mar
ket has now opened is one OF caution,
conservatism, restricted means and
diminished numbers in the rank OF
operators, and that means, for some
time to come, u contraction OF specu-
lative transactions. Although 1t seems
safe to conclude that the worst OF this
second phase OF the crisis has been OK
perienced, yet it would DO q mistake to
conclude that it will be at once sue.
Ceeded by any buoyant recovery, Time
must be allowed for repair OF the shock
to confidence, for readjustments, for
the influx OF new capital and for the up
pearing OF new conditions as q fresh
basis oil confidence.
II Is to the latter factor that atten-
ton will next be turned. There arc
new conditions looming up that may
reasonably be expected to produce a
better feeling. Our disturbed financial
relations with other countries have
manifestly passed their worst phase.
The imports show declining tendency,
which is likely to be still moro marked
at q later stage. The exports. though
still relatively light, are soon likely to
DO soon augmented through the crop
damage in Europe, causing foreign
demand for our large surplus Of wheat.
These changes may be expected TO ma
terially reduce our liability to export
gold for tho next few months. The
subsid,n nee OF gold alarms, which have
caused the interior banks to withdraw
large amounts Of deposits from this city,
will have the effect OF causing those
banks to return the funds; which will
ease tho strincency in discounts and
make money more available for stock
exchange uses With greater steadi.
ness in these financial conditions,
We may hope that English investors
will begin to show a preference for
American securities over the colonial
issues from which they are now go SO.
verely suffering. Meantime, in spite OF
the quiet business, the earnings Of tho
railroads show very liberal gains. In
connection with the future OF the in.
dustriats, it is to be considered that the
break down in their stocks has boon
due entirely to the wild speculative in.
Aation Of their market price, and not at
all to the condition OF their business
and earnings, which Is generally good.
These are considerations which will,
in due timc, have their assuring eHoct
upon tho market But. for tho present
the only safe policy is ono Of caution.
II cannot yet be positively assumed
that oil weak spots in tho market have
been eliminated and until all doubt on
that point Is received, the true policy
OF holders Is to strengthen their ability
to keep what they have rather than to
materially increase their load