The Republican. [volume] (Oakland, Md.) 1877-current, 1894-09-13
FINANCIAL REVIEW
,enI-' Dl5Ws' We La.,-- on Z

- ~ Ot f'CIil. C.---AS Ill}l-
Gated in our last adyices, the slight
reaction in the price Of stoc<s in
the last weeks OF August has heeu
followed, during the past week. bv
a general recovery of tone and an
advance in quotations. This IS
evidence that the market has MT
lost the confidence inspired by the
settlement of the tariff, and tie
consequent general revival Of bust
ness. The improved tone in I've
merchandise markets aud The pres
cnce in the leading markets of
buyers of goods representing all
parts of the country, finds u ready
response i'll Wall street; the more so
as the railroads already show tie
effects Of the revival in an increase
of earnings.
The general outlook IS inter
preted as favoring q continuance If
the present symptoms # recovery.
Everywhere there IS scarcity OF
goods; and the unprecedontedIy low
scale Of prices encourages buying.
After twelve months contraction of
purchases, alike by Traders and con-
SINNERS, a considerable rcpIcrish-
ment of supplies seems inevitable.
The buying m?y be conservative
and consumption may possibly run
largely upon the lower grades of
goods; but, in any case, the mA,l,in-
ery.of business has now received a
new impetus, and there is no reason
why it should not steadily recover
its accustomed movement. II may
be that the recovery liz the indus
tries, Or i'll some Of them.-Will
somewhat lag behind thc movement
i'll commercial operations; for there
is reason to fear that the marurac-
tuners are conteading against the
difficulty of IN excess plant, and
for that reason they may find
ground for complaint until their
capacity for production becomes
better adjusted to the demand for
products. To reach that adjust
ment there must be on the one side
an increase in tile buying ability of
consumers, and, on the other. the
permanent disuse Of plant which
has failed to keep pace with the
match of economy in productions.
For these and other reasons. W.,
may not be warranted in expecting
any immediate "boom" il trade:
but we may legitimately anticipate
the wholesome process of recoycl V
that comes from revision Of the
conditions of production and dis
trlbution. Such Il revision is cal
culated to encourage confidence in
Investments; and, if it fails to in
duce expansion in industrial on =
lays, it to the same extent encollr-
ages Investment in already existing
securities.
The general situation Of invest
ments seems to favor a steady rise
in the value of railroad securities.
From causes connected with the
excess of manufacturing plant above
referred to, there may yerv possibly
be, for some time TO come, a check
upon the flow Of new capital into
the industries. The tendency of
the moment, indeed, is rather
towards the consolidation of the
several separate capitals of import
ant trades into single great
monopoly, for controlling tho effects
Of excessive production and conse-
quent competition. This, for the
moment at least, directly tends to
divert tine increasing wealth of the
country from industrial uses and
forces it into other forms of invest
ment. Railroads are the more cal
culated to attract tins diverted cap
ital because they are becoming less
and less exposed to competition
from the creation Of new companies
and the construction Of new line.
Experience is improving their
methods of operation; public opin-
ion is enforcing upon them greater
integrity Of management; the cur
rent wholesale reorganization of
large companies is not only weed
ing out the weak spots IN their
finances but also exhibiting the
necessity for more conservative cap
italization and stricter accounta-
bility Of managers; while the
decline in the cost of supplies and
il wages is conducive TO greater
economy Of operations. These facts
should make railroad stocks aud
bonds more acceptable to those who.
for the time being, find some oLhcri
forms of corporate Investment sur
rounded by doubts arising from un-
settled industrial conditions. For
this reason, we expect to find the
values Of railroad Sc uritics steadily |
sustained by growing investments |
demand, and regard them us good |
purchase whether on speculation or /
for permanent holding.