The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-11-06
,p,riaI Correspondence Of the Iniaiiqorecr

New York, Nov. 4.-Last week we
noted the beneficial effect upon prices
of Wall streets anticipation of the
passage OF the silver repesl bill. The
past week has shown the effect Of the
consummation OF repeal in an extensive
realizing OF profits upon that advance,
with a consequent fall Of two to three
points in prices, and, next, in reaction
from that decline.
For the moment there is some halt
ing in operations, duo to disposition
to wait until estimates OF the new situa-
ton created by repeal are more def
nitely matured both here and in Lon
Ion. In some quarters disappointment
was felt at Loudon becoming seller
to the estimated extent OF three to four
millions, instead OF buyer as had
been expected. THIS course was, how
ever, nothing MORT than might have
been reasonably anticipated. In the
first place, London spectators were
holding a considerable amount Of our
stocks bought AZ much lower prices;
and, in selling upon the senate's vote,
they were only taking the same wise
course rs our own OPERATORS Is,
making sure OF their profits. That
course had not been expected, because
London usually takes its profits after
New York has realized in this instance
it was wiser. IN the next place, OK
change stands close upon the specie
importing rate; and rs further pur-
chases BY London might easily start
exports Of gold to New York, with u
consequent putting on the screws by
tho Bank OF England, it may have
seemed more prudent to first realize
and then buy back at lower prices.
And again, our suspension OF silver
purchases raises some temporarily &C.
rious questions for London. That
centre has to face the necessity OF an
international silver agreement or the
assured certainty OF the final discard
ment of silver, with consequences which
Mr.. de RothschilI, as one OF Great
Britain's representatives in the late sill
yer conference, declared would be ot
very serious financial moment, and
especially to England. One sympto.
matte effect has already appeared in the
absence OF a single bid for four million
rupees OF council bills offered on the
first instant.
As the bearings of this change will
iaIl FIRST and more especially upoh Lon
don, it is not surprising that the ROYAL
Exchange should show some caution
about operations that would tend to
draw gold from the Bank OF Englond.
This caution, however, has not pre-
I
about one million in amount OF which
was taken on Wednesday. Those trans
actions, however, represent the invest
ment demand rather than the specula-
tive; and, TO that extent they are e-
Ultimate expression OF the improvement
of foreign confidence in OurinvGstments
arising from repeal. 1t is a favorable
indication that the Bank OF England
did not on Thursday advance its rate OF
discount, as had been expected, in face
of the fact that the rate OF discount in
the open market was only below the
bank rate, and that gold was being
taken out OF the bank for export to
New York. This looks rs though the
bank managers saw nothing in the re.
peal act. or in the situation otherwise,
TO call for any immediate precautionary
action. A few days more will bring
forth more distinct symptoms OF what
may be the effect upon London specu-
| iative interests arising from the new
conditions this side the Atlantic.
1t would be poor result OF this great
effort OF the American people to main
tain sound money system il it did not
| issue in a great revival OF confidence in
our Investments, not only throughout
| Europe but also among our own people.
Alter such widespread distrust conse.
uuent upon the dangers created by Sill
yer, it conveys an immeasurable assur-
auce for this country that it has had
| the wisdom and the courage to take the
decisive step that settles for the world
| the question OF monetary standards and
uuilies the money OF the two most civil
lied continents. We have not begun
to reaii2e tho immense significance Of
this action. The unsettled silver prob
lem has been standing threat to
finance and Investment for the last tit-
teen years. Its removal gives free
course to all that has been INSTRUCTED
by these misgivings. 1t is an assur-
ance that great enterprises extending
far into the future will no longer be
hampered by questions about the
money Of payment. Its effect will be
most important among those who con-
troll the larger movements OF capital,
which have so long been held in sus.
pense By this unsettled question OF
standards. Capital demands the most
absolute assurance on this point; 1t
has long md timidly waited for that
assurance and remained idle in its alb
sence; it now has all it can ask, and we
may therefore expect an era oil revived
enterprise in great undertakings.
Tho revival cannot be expected to
appear Immediately. Tho first result
OF repeal must be renewal OF conf
dcnCc in ordinary commercial and IN
dustrial operations; which, however,
will have beneficial bearing upon a
wide class OF investments, and especial
~ upon railroad stocks and bonds.
When accumulated capital has had
time for selecting its employments and
making its plans, We may look for
tho larger developments OF this new
eemnnt Of confidence. It is not too
early to look Tor buying OF stocks in an
liclpation OF these larger results. Wall
street looks far ahead, and discounts
tho future rs far as it can see int it,
and sometimes farther. 1t is not likely
to fail to do so in this instance; and,
from this time forward, the larger and
more intelligent operators may DO OK
pected to include these remote bone
fits OF repeal in their estimates OF the
current value OF stocks.
For these reasons, although there has
been already an important recovery in