The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-09-10
FINANCIAL REVIEW.
Henry Uews's Weekly Lister on
tho susiness Outlook
SYMPTOMS OF RECOVERY
Duo to the Scarcity of Goods aud tho
Unprecedentediy Low Scale of
Prioes-Tbe General Situation with
Regard to MISUNDERSTANDING
OF Railroads
soeeial c,rrepoad,no. OF o. Ia..atg,D.,,

Special coTepORdnaS Of us IatS1igsAea
NEw YoRE. Sept. s.-As indicated in
our last adyiees. the slight reaction in
the price Of stocks in the last weeks OF
August has been followed, during the
past week, by q general recovery OF
tone and an advance in quotations.
This 10 evidence that the market has
not lost the confidence inspired by the
settlement Of tho tariff, and the conse.
quent general revival OF business. Tho
improved tone in the merchandise mar
Kets and the presence in the leading
markets OF buyers Of goods represent
ing all parts OF tho country, finds q
ready response in Wall street; the more
so as the railroads already show the ei-
fects OF tho revival in IN increase Of
earnings.
The general outlook Ia interpreted as
fayoring a continuance Of the present
symptoms OF recovery. Everywhere
there is u scarcity OF goods; aud the
current uupreCedentedly low scale Of
prices encourages buying After twelve
months contraction OF purchases, alike
by traders and consumers. q consider
able roplenishment Of supplies seems
inevitable. The buying may be con-
sOrvalivo and consumption may pOssi-
bly, run largely upon tho lower grades
OF goods; but. in any case, the maohln.
cry OF business has now received new
impetus, and there is no reason why 1t
should not steadily recover Its acCus.
toned movement. II may be that the
recovery In the industries,-Or in some
OF them.-will somewhat lag behind
the movement in commercial opera
lions; for there is reason 10 lear that
manufacturers arc contending against
the difficulty OF an excess OF plant, aud
for that reason they may find ground
for complaint until their capacity for
production becomes better adjusted to
the demand for products. 10 reach
that adjustment there must be on tho
one side an increase in the buying
ability OF consumers, and. on the other,
the permanent disuse OF plant which
has failed TO keep pace with the march
OF economy in production. For these
and other reasons. We may not be war
rauted in expecting any immediate
boom" in trade; but We may legiti-
mately anticipate the wholesome pro-
cess OF recovery that comes from a re-
vision Of the conditions Of production
aud distribution. Such revision Is
calculated to encourage confidence in
investments; aud. II II fails to induce
expansion In industrial OUTLAWS, 1t to
the same extent encourages investment
in already existing securities.
The general situation OF investments
seems to favor steady rise in the
yaluo OF railroad securities. From
causes connected with the excess oil
manufacturing plant above referred to,
there may very possibly be, for some
time to come, check upon the low OF
new capital into the industries. The
tendency OF the moment, indeed, 10
rather towards tho consolidation OF the
several separate capitals OF important
trades into single great monopoly, Tor
controlling the ellects-ot excessive pro-
duction and consequent competition.
This, for the moment at least, directly
tends to divert tho increasing wealth OF
the country from industrial uses and
forces it into other forms OF investment.
Railroads arc the more calculated to
attract this diverted capital because
they are becoming less and less exposed
to competition from the creation OF new
companies and the construction OF new
limo. Experience is improving their
methods Of operation; public opinion
is enforcing upon them greater integri-
ty OF management; the current whole
sale reorganization OF largo companies
is not only wedding out the weak spots
in thoir finances but also exhibiting tho
necessity for more conservative capital.
ization and u striCter accountability Of
managers; while tho decline in the cost
OF supplies and in wages is conducive TO
greater economy OF operation. Ihese
facts should make railroad stocks aud
bonds more acceptable to those who,
for the time being, find somo other
forms OF corporate investment aur'
rounded by doubts arising from unset
tied industrial conditions. For this
reason, We expect to find the values OF
railroad securities steadily sustained by
n growing Investment demand, and re-
gard them as q good purchase whether
on speculation or for permanent hold
ing.
The gross earnings OF railroads con-
tinue to make increasingly favorable
comparisons with this period OF last
wear, whom tho depressions OF business
mad not produced its full effect upon
Transportation, and whom earnings were
swelled by the Worlds Fair. For the
four weeks OF June, some seyenty.hve
to eighty lines showed decline. aver
aging about twonty per cent, from 1893;
and. owing to the Debs strike. the de-
crease was over ,hirtystwo per cent:
From that da,o to the third week OF
july, tho decline diminished to 1910
mar cent, showing the effect oil tho
breaking up Of the strike; and, Tor the
last week OF that month the decrease
was less than two per cont. August
opened with o mcrcly fractional falling
oil; and tho third week OF that month
showed an increase over last year oil ~
per cent. 1t is to DO noted, however.
That August Of 1898 showed u decline OF
thirteen per cent as compared with
ISO9: but the traffic Of that month two
years ago was large beyond all precc-
dent Under all circumstances, there
fore. the curront drift OF earnings must
be regarded us assuring.
w ~ HENRY CLEws.