Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1893-08-03
MONEY. STOCKS. ETC.
Henry ClewS View of the Situation
As 1t Now Exists.

ancy and weakness on the stock ey-
change. says Henry ClewS Under the
existing timidity there has naturally
been a restriction to both investment
and speculative buying, and the bears"
have consequently had clear Geld for
the employment of whatever tactics
seemed best adapted to serve their
ends. Fairness or consideration for
public interests was not to be ex-
pected from such a source A full
bred bear is an inSrained and mer-
CHESS destructionist: his natural eIe-
ment is slaughter and ruin. and he
never desistS from the indulgence Of
his malevolent instincts until he scents
the approach of the avenger, when he
is incontinenty swift and cowardly
III his retreat. Up to the middle of the
week. these marauders had full swing,
and they played their havoc virtually
without counter challenge The sur
prise created by the Erie receivership
threw everybody off guard, and the
occasion was seized on Wednesday for
concerted attack upon the best prop
critics on the list, with the result Of
drop in prices ranging from to 9
per cent. The attack was so sudden
that no effective resistance was forth
coming even in the case Of the best
protected stocks; but, on Thursday, the
sellers showed their appreciation Of
their exposure by rush to cover their
sales, which was attended by a gener-
al recovery in prices, helped by free
buying orders from London. Consid-
cred rs a symptom, Wednesdays eX-
perlence was much less diScOuraging
than might appear at first sight The
view of the break taken by London
shows that that market understands
the nature of our situation and is not
disposed to take serious alarm at add
verse turns in prices. 1t is also &
favorable Indication that the slump,
brought out NO important amount Of
long stock, which shows that stocks
are we'll he15J whilst the fact that
only one house slccumbed to such
heavy decline indicates that brokers
are iha SOUND condition Indeed, it
is a remarkable fact that, during a
process of decline extending over some
three months, so few firms have seri-
ously felt the effect of losses. 1t
means that there has been little loose
or reckless speculation and that hold
ers have Been we'll situated for protect
ing themselves. This is circumstance
that will tell for something when the
final turn in the market comes.
In the generaI monetary situation,
there has Been no very conspicuous
improvements. The renewed demands
by the banks of the, northwest have
caused a fresh DRAIN upon the banks
of this city,, which has intensified the
local scarcity of currency, though not
with the effect of materially increasing
the stringency.. The fact is that the de-
cline in the prices, Of securities and
| the genral contraction OF commercial
operations have SO. restricted the de-
mand for loans, and discounts as to
! largely offset these limitations upon
! the lending ability of the banks, and
therefore the money market has suffer
{ ed from these. new withdrawals of
| money only Indirectly rather than di-
rectly.
! Certain results, of the crisis are now
J beginning to- bring remedial tendencies
into play. The fall in, prices of pro
! ducts is opening foreign markets to
larger supply of our exports, and the
! decline in stocks and bonds has
brought out such exceptional tempta-
| tons to foreign investors as to produce
material change in the foreign eX-
changes and the current symptoms
consequently Indicate probability of
] considerable imports, of GOLD In con-
nectiOn with this fact, it is fortunate
that London. appears, to construe IA
yorably the chances. of congress repeal
Ing the silyer-purchase clause of the
Sherman act. This expectation must
be regarded as explaining the recent
steady buying, on London account. 1t
is in every way reasonable to antici-
pate that, in the event of congress
taking that action, there will be an i'm
mense foreign demand for our stocks
and bonds that viii put q new aspect
upon financial atfGlirs, On this side the
Atlantic and produce, a general recOy-
cry in prices. Fortunately, both the
Bank of England and the Bank of
that weuld predispose them rather to
encourage than discourage such
movement. Rum0rs have been current
that, on the strength of the PROBABLE
ties OF such legislation, negotiations
have been set afoot for borrowing a
considerable anaOunt In London and
Paris upon our securities at their cur
rent low prices, with a view to bring
ing hither an amount of gold sufficient
to dissipate the prevailing demoraliza-
tioa. We have reason to believe that
such a plan has been seriously deliber-
ated in high quarters; but no positive
action seems yet to have been taken;
but even if such a scheme is not made
operative the desired result will sure
" come about in the ordinary course
Of the foreign exchanges. Already,
shipment of 100000 of gold is on
its way hither and more is expected
to follow.
At the present moment, much de-
ponds upon whether the extreme scar
city of money among the banks of the
that point is passed, little would re-
main to Obstruct the process of recov-
cry. The stage of recovery will be
cOincident with the return of money
from hoard to the banks; and the
strength and firm endurance of the
drain suggests a probability that the