The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-07-31


New YoRK, July 2O,-Ws have to re-
cord another week OF 'bear" ascend
epcy and weakness on the stock OK,
change. Under the existing timidity
there has naturally been q restriction
to both investment and speculative
buying, and the 'bears" have conse-
quently had a clear field for the en-
ployment OF whatever tactics seemed
best adapted to serve their ends. Fair
ness or consideration for public inter-
ests was not to be expected from such a
source. A full bred "bear" is an in
grained and merciless destructionist;
his natural element Is slaughter and
ruin, and he never desists from the in
diligence Of his m~alovoleut instincts un-
til he scents tho approach Of the aveng.
or, when he is in%Continently swift and
cowardly in his retreat, Up to the
middle OF the week, these m~arauders
had full swing, and they played their
havoc virtually without counter chal.
lenge. The surprise created by the
Eric receivership threw everybody of
guard, and tho occasion was seized on
Wednesday for q concerted attack upon
the best properties on tho list, with the
result Of a drop in prices ranging from 4
to D per cent
The attack was 30 sudden that no Of.
fective resistance was forthcoming even
in the case OF the best protected stocks;
hut, on Thursday, the sellers showed
their appreciation OF their exposure by
a rush TO cover their sales, which was
attended by q general recovery in prices,
helped by free buying orders from Lon.
don. Considered as asymptom, Wednes-
days experience was much less discour-
aging than might appear at first sight.
The view OF the break taken by London
shows that the market understands the
nature Of our situotion and is not dis.
posed to take serious alarm at adverse
turns In prices. 1t is also a favorable
indication that the slump brought out
no important amount OF "long" stock,
which shows that stocks are we'll held
whilst the fact that only one house sue.
cumbed to such a heavy decline indl-
Gates that brokers are in n sound con.
dition. Indeed, it is a remarkable fact
that, during a process OF decline extend.
ing over some three months, SO few
firms have seriously felt the effect Of
losses. It means that there has been
little loose or reckless speculation and
that holders have been we'll situated for
protecting themselves. This Is a cir
cumstance that will tell for something
when the final turn in the market
comes.
In the general monetary situation
there has been no very conspicuous i'm
provement. The renewed demands OF
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 dc.
cline in the prices OF securities and the
general contraction OF commercial OPP.
erations have so restricted the demand
for loans and discounts as TO largely
offset these limitations upon the lend
ing ability Of the banks, and therefore
the money market has suffered from
these new Withdrawals OF money only
indirectly rather than directly.
Certain results OF the crisis are now
beginning to bring remedial tendencies
into play. The fall in prices Of prod.
ucts is opening foreign markets to a
larger supply OF our exports, and the
decline in stocks and bonds has brought
out such exceptional temptations to
foreign investors as to produce q ma
terial change in the foreign exchanges
and tho current symptoms consequent.
ly indicate q probability OF considerable
imports Of gold. In connection with
this fact, 1t is fortunate that London
appears to construe favorably the
chances OF Congress repeating the sill
yer purchase clause OF the Sherman
act, This expectation must be regard
cd Us explaining tho recent steady buy
ing on London account. II Is in every
way reasonable to anticipate that, in
in the event OF Congress taking that ac-
ton, there will be an immense foreign
demand for our stocks and bonds that
will put q new aspect upon financial at.
fairs on this side Of tho Atlantic and
produce q general recovery in prices.
Fortunately, both the Bank OF England
and the Bank Of France have nov a
surplus of gold that would predisposo
them rather 10 encourage than discour.
age such q movement,
Rumors have been current that, on
the strength OF the probabilities OF such
legislation, negotiations have been set
afoot for borrowing q considerable
amount in London and Paris upon our
securities at their current low prices,
with q view to bringing hither an
amount Of gold sufficient to dissipate
tho prevailing decentralization. We
have reasons to believe that such q
plan has been seriously deliberated in
high uuartersr but no positive action
seems yet to have been taken; but oven
II such q scheme is not made operative
tho desired result will surely come
about in tho ordinary course Of the
foreign exchanges. Already, a shipment
OF 81, 900 OF gold is on its way hither
and more IL expected to follow.
At the present moment, much dc.
ponds upon whether the extremu scare.
ity OF money among the banks OF tho In.
terror has reached It's climax. Whom
that point is passed, little would remain
to obstruct the process OF recovery, Tho
stage Of recovery will be coincident with
the return Of money from hoard to tho
banks; and thostrOngth aud firm Ondu.
rance Of tho banks under such an OK.
traordinary drain suggests q probability
that the timid will soon conclude that
their fright has largely exceeded any
feal occasion aud will return their
hoards TO the banks.
Under all these circumstances, We aro
dlsposcd 70 take Il hopeful view Of tho
future course Of securities and regard