The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-05-22
Henry olews's Weekly Letter on
the Money Situation.
THE DEPRESSIONS LOWEST POINT
Was Reached Last week-A Reason
ably Steady Course OF the Money
Market for Some Time Expected.
The Violent Wrench Caused by tho
Break of the 'Industrials"


fESsaSA IA WA ANSN "SSN's NSfhSSS NtANNN
the depression had then touched its
lowest point has been confirmed by the
course OF the market during the past
week. The latest bank statement, show
ing q gain OF over five millions 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 de-
moralization, 1t showed not only that
the banks we're in a strong position but
that free influx OF money from the
interior had set in calculated to further
strengthen their position at o later
stage, In the state OF affairs then exist
ing this was the one thing needed to
restore confidence. 1t meant that no
good borrowers, whether financial or
mercantile, need longer suffer from lack
OF accommodation; and as stocks were
selling lower than at any time since tho
Barring disaster, there could be no ques-
ton as to their being a sound collateral,
excepting the 'industrlals. This con-
dition OF the reserves also mollities any
apprehension that may still exist as to
the possibility OF further exports Of gold
draining the resources OF the banks
The latter movement has, for the mo-
ment moro assuring look; the ship
ments OF the past week having been
lighter than was generally 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. 1t
would seem that no gold can be sent to
Australia except what may be needed
for purposes OF temporary help to em-
barrassed banks: and the suspended
banks are owing large portion OF their
deposits to British creditors, whose
Withdrawals may be expected TO largely
offset any cash aid sent from London.
So far as the late condition OF the
stock market has been due to purely
and monetary causes, it is now relieved
from that particular source OF pressure,
and We may count upon reasonably
steady course OF the money market for
some timo ahead This is an important
contribution to the recovery OF conf
dence; but there ls limit to the en-
couraging differences deducible from 1t.
1t means that whoever may be disposed
to buy good securities, either us MI in
vestment or for transient holding upon
good margins, may do SO with reason
able prospect OF coming out on the
right side. But it does not mean that
we may expect an extravagant upward
reaction in securities generally.
II will be wise for operators to realize
how violent is the wrench caused by
the break OF the "industrials," and how
wide its effects have been and how long
those effects may continue. That crash
has driven out Of the market large
portion OF the Outside" who have been
operating in those stocks and few Of
them have anything left for resuming
operations. It has shaken confidence
for the time being in that class OF prop
erty, and il has made lenders cautious
about making large advances on them.
Time alone can serve to heal this shock
and to bring back TO Wall street capital
seeking temporary employment in &C.
Curities. For some time still, the dubi-
GUS conditions will be exaggerated and
the hopeful ones will be subjected to
pessimistic discount There is les.
son yet to be learned by the public
about the "industrials," the moral Of
which will act as long.protracted eau.
ton about the future employment OF
capital. As the process OF invesEiga.
tion into and repair OF the crippled
combines" goes on, it 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 industries and how
many hundreds of millions OF CONNER.
cial capital have fallen under tho vic.
ious control OF this rotten principle OF
organization, then will como second
stage OF distrust towards these institu-
tions, more dangerous even than this
first, for it will be the stage OF disinte.
grafton and dissolution. When that
stnge CONES. however, we may look for
GIp..S sS.S.Asss2., u MANUAL Conditions
among our industries :. large. BuiS
during the interval, these doomed in.
stitutions will remain n source OF indus.
trial distrust the influence Of which will
be unwholesome.
There can DO no doubt that the inAa.
ton associated with these trust" or.
carnations has infected Industrial oper-
atoms in quite other directions. The
spectacle OF tho enormous Wall street
speculationsin the "cordage," whisky"
etc, combines has led to the incorpora.
ton OF Il large number Of private firms
upon basis OF initiation which cannot
stand the test OF experience and tho
strains to which credit Is periodically
subject. Banks and bankers have been
made subseFVient to these creations
and tho result has boon apparent in the
failures OF interior banks and tho NAL
ieasances OF corporate officials which
have shocked tho country for tho last
two or three weeks.
Reference IS here made to those con.
ditions Of industrial imitation, because
they constitute phase OF things OF
which little noto has been taken III nc.
counting for tho present state Of affairs
in Wall street, and also because thcy
stand connected with certain after.
effects Of the crisis which must hang
around The Investment markets for
some time to come. AT tho same timc,
while giving due weight to these Gle.
mcnts Of arrangement, wo must never
loco sight OF the immense reGupcrativo
power Of American resources and Of tho
quicknCss with which our people detect
their mistakes and throw overheard
false methods. Tho lesson Of tho lin.
dusLrlala" Ia already sinking deep into
tho mind Of our people, and tho next
phase Of investment and speculative