The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-09

| ton lmmedsurably beyond any conSerVa-
| tive estimate OF their intrinsic value.
! Owing to the unsound basis of their or
ganization, they have found little lodg-
menJ among investors, and have been
! principally an instrument of speculation
as between the original holders and out
| side spectators. Under these circum-
| stances, they have always been treated as
| unsatisfactory market collateral, and con-
Sequently 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 rs a drastic form OF relief
than as a real disaster. The break elInn-
ates a lOng-felt element Of danger from
the market ana gives to securities OF higher
intrinsic merit fair chance for realizing
their true value.
Outside the irdustrial-. the market
has stood up remarkably well. The entire
list has been sympathetically affected; but
there IS good reason TO hope those derange-
ments will prove only temporary. The
railroads are conceded to be in excellent
condition and the market is by no means
oversupplied with that class Of stocks.
They have had to contend, at the moment,
with a supply coming from mercantile
borrowers who, under the contraction Of
upon this class of assets; Uut thoses sales
are a comparatively unimpOTtant factor.
In fact, the Ordinary run of securities Is
regarded as in a sound and satisfactory
condition and, at the late current range of
prices, have been readily accepted as col
lateral. They have for some time suffered
IN symapthy with the distrus5 existing
against the 'iudustrials, which has spread
a paralysis OF distrust over the whole mar
ket; but now that the trust bubbles have
exploded, the market will naturally as
sumo a healthier tone and railroad shares
may be expected to find "A fairer recogni-
tion of their special merits. In fact, the
break puts the whole market in a souuder
and safer condition.
The general financial situation has not
been inJGriously aggravated by the crisis;
on the contrary, it has rather been imprOv-
ed, through the elimination of an element
OF disturbance and distrust in the loan
market Tine banks show less apprehen-
sion Of arrangement from gold exports
and from the position of the treasury, and
seem disposed to act with prudent liberali-
ty to their commercial customers. Indeed,
the curtailmcnt of discounts appears to
come 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 warrant.
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 moment shows no
marked tendency towards revival, ana
the gold reserve IS consequently better
maintained than has been expected. Still,
however. the exports of produce fall much
below the requirements of the foreign eX-
changes and, so long as that continues.
there can De no assurance of escaping
further shipments of gold. 1t would
seem reasonable to expect that the de-
structive effects of the drouth in Great
Britain, France and some other parts OF
Europe viii cause an advance in bread
stutfs and a consequent revival IN our eX-
ports, which is the thing above ali else
needed to adjust the abnormal condition
OF our foreign trade balance.
wv hat has befalIen the iDdustrials, and
the smaller declines that have occurred on
other stocks in sympathy, must of course
leave the market in Il disabled condition
and operations Will naturally center
chiefly upon the better class of stocks,
which, at present prices, afford very tempt
ing investments. At the same time, il is
very important that the real Significance
of the crisis be not over-estimaued. The
break has come mainly from sudden ex-
elements and unrefiecting fears caused by
the general collapse of the speculative
indGstrials. The crisis has compara-
lively little to do with the general cOndi-
tion of business, which is sound and, up
TO this time, has been unusually. pros
porous. There has been no undue Initiation
of enterprise in any direction, but rather
an exceptional exemption from 1t. Credits
have been kept in "A healJny condition;
there is no serious European financial
arrangement; and, III brief, there is "a
c imperative freedom from most OF the
abnormal conditions that usually lay the
basis for panic. Being thus limited as TO
its causes. the crisis will be correspond
inglv helped in the stage of recovery from
It's effects. Having made securities cheap,
Que of its results Will be to draw out
stream of orders for investment, both at
home and abroad; and it would net be
surprising should it be found to result in
an overflow of securities to Europe that
viii materially contribute towards rectify-
ing the strained condition of our foreign
exchanges. 1t VIII be found to open up
manyforms OF reliefto the transient none
tary arrangements that have arisen from
other causes.
CINCINNATI, May S-The United States
court has appointed Messrs. Loper and
Young receivers Of the National Cordage
cOmpang. They are the same parties ap-
pointed by the New \ Nork courts, and the
object is 30 remove any doubt of their
to control the company's
property in Ohio.