The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-23
TEE MEEK In WALL STREET,.

| NEW YORK, May 22-Henry Clews, ii
his weekly financial review, says:
"The opinion expressed in our last
weekly advices that the depression had
then touched its lowest point has been
confirmed by the course of the marker
during the past week. The last bank
statement, showing a gain of over five mil
lions In the surplus reserve and an excess
in that item over the figures of like date
! for either of the last two years, was the
first fact to firmly arrest the prevailing
| Generalization. IU showed not only that
| the banks were in a strong position but that
a free influx of money from the interior
| had set in calculated 10 further strengthen
| their position at a later stage. In the
| state of affairs then existing, this was the
| one thing needed To restore confidence. 1t
| meant that no good borrowers, whet her
| financial or mercantile, need longer suffer
| from lack of accommodation; and as stocks
were Selllu. lower than at any time since
the Barring disaster there could be no
question as to their being q sound collRt-
eral, excepting the induSUrals. This cOn-
ditlon OF the reserves also mollifies any
apprehension that may still exist as TO the
possibility of further exports of gold drain
Ing the resources OF the banks. The latter
movement has. for the moment, a more
assuring look: the shipments Of the past
week having been lighter than was gem
orally expected. Further failures of banks
in Australia have. however, suggested the
possibility of some drain from London on
this market; but it is felt that such wants
as are likely to arise in that quarter can
be met without any serious strain it
would seem that no gold can be sent to
Australia except what may be needed for
~
banks; and the suspended banks are ow-
ing large portion of their deposits to
British creditors, whose Withdrawals may
be expected to largely offset any cash aid
sent from London.
80 far as the late condition of the
stock market has been due to purely bank
ing and monetary Causes, it is now rellev-
ed from that particular source of pressure
and we NAV count upon a reasonably
steady course or the money market for
some time ahead. This is an important
contribution TO the recovery of confidence;
but there Is limit TO the encouraging
inferences deducible from it, 1t means
that whoever may be disposed to buy good
securities, either AS an Investment or for
transient holding upon good margins, may
DO SO With il reasonable prospect of coming
out on the right side. But it does not
mean that we may expect au eXtravagant
upward reaction IN Securities generally.
1T Will be wise for operators to realize
how violent is the wrench caused by the
break or the ludusLrIals, and how wide its
effects have been and how long those
effects may continue. That crash has |
driven out of the market "A large portion
Of the outsiders who have been opera |
ting IN those stocks, and few of them /!
have anything left for rssuming opera
tlons IL has shaken confidence for the |
time being IN that class of properties, and |
1t has made lenders cautious about max |
ing large advances on them. Time alone !
can serve to heal this shock and To bring |
back to Wall street capital seeking tenn |
porary employment in securities. For |
some time still, the dubious conditions /
VIII be exaggerated and the hopeful ones |
VIII be subjected to pessimistic discount. |
There Is a lesson yet to be learned bt the |
public about the lndu>trials, the moral OF |
which VIII act long protracted eau
tlon about the future employment of CAPT. !
tai. As the process of Investigation into /
and repair of the crippled combines goes !
on, 1t will be found how utterly rotten has /
been the basis OF their organization and /
their methods of conducting business:
and when it Is reflected how many indus |
tries aud how many hundreds of millions |
of commercial capital have fallen
under the vicious control Of
this rotten principle of organization.
then will come a second stage of distrusJ
towards these institutions more DANGER
Gus even than tins nrst, for IL will be the
stage OF dlSIntegrHtlOn and dissolution
" hen that stage comes, however, We NAV
look for a restoration OF natural condi-
tons among our industries at large. But,
during the interval. these doomed iustIGu-
tious will remain source OF industrial /
distrusf, the Influence of which will be un-
wholesome.
There can be no doubt that the infia-
tion associated with these trust organI-
1atIous has Injected industrial operations
in quite other directions. The spectacle of
The enormous al street speculatlons ia /
the "cordase, whisky" etc, combines
has led 10 the Incorporation of "A large uunI-
Der of private firms upon "A basis of initiation /
which caunot stand the test OF experience
and the strains 10 which credit is perIodi-
cally subject. Banks and bankers have
Ureu made Subservieut TO these creations;
and the result has been apparent IN the
failures OF interior banks aud tie NAL !
feasauces of corporate officials which have
shocked the country Tor the last two or
three weeks.
reference Is here made 10 these condi- /
;lous OF industrial Initiation. because they
constitute phase OF things of which little /
C.e has been taken IN accounting for the /
resent state OF affairs III Wall street, and /
a $50 because they stand connected with /
must hang around the investment mar.
Aet> Tor SONS time 10 come. At the same
NE, While giving Gue weight TO these
clements 81 arrangement. We must never
oSe sight OF the immense recuperatlye +
power OF American resources ana OF the
lulcknesS with which our people detect
.HeIr mistakes and throw overheard false
methods. The lesson OF the lndustrIals i.
ilreaky sinking deep into the mind of our
people. and The next phase of investment
aud speculative movements will oc 10 LEI
al such enterprises severely alone aud
give the more attention 10 the things that
are honest ana OF good report. IuS sort
y discrimination Will perceive mat our
'aiiToau stocks, At current prices. are an .
exceptionally good Investment. and, ut no
Instant day both home and foreign lnYes- 4
ors Vii! take Ok tie market an amount .
y those issues that wi. restore values
and confidence At the same time Whilst. /
therefore,. buoyAgt restoration o. >pecu-
alive activity - not 20 be expected II !
-ea~onau.e 10 look Tor the coming forward /
Il the conservative mSu Of means who al
Ways fi0G their opportunity o. ouv,a-
litrr such rrostTatlou ot values a hs,
ust betsilen Wall street I earnestly
ecommeui buying an Inc good invest
lIrng stocks GA Jhe raids hereafter