The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-04-23
FINANCIAL REVIEW,
Horny Cloves wookly Letter on
tho Business Situation.
YERY DECOURNGlNG PROSPECT
Duo to thr Delay OF tho Tariff Bill.
Prospect of Bank Motto Legislation
Attracting tho Attention of Wall
Strcct-conccrnlns tho Immediate
Future ofihe Market Moderation Is
Advisable.
splefal core,ponaenc. ctNt mtno.n,cr.

I ~
Of last week, VIC cited some OF tho
causes which arc producing q condition
Of suspense in tho Wall street markets
and temporarily affecting prices unfav-
orably. Those influences still remain
in operation, with tho effect OF cncour-
aging "beur" sales, whilc having little
effect upon holdora OF 'long" stock.
Out OF tho uncertainties attending tho
situation At Washington, ono probnbil.
ity Is coming out with moro distinct
ness, namely, that tho tariff bill con-
coded to be suro to puss, either with the
income tax attachment, or without it
But tho time for its enactment Is now
1nt back rs far US next August. This 10
\ discouragtng prospect, as it can
tina: the manufacturing interests arc to
be kept In n state OF compulsory mac
tivity for two or three months longer
than has been anticipated. Undur
this state Of a~tiairs, 1t is out OF tho ques-
ton to expect any noticeable revival Of
general business until the fall months,
whereas such Improvement has been
hoped for about midsummer. This,
however, means disappointment rather
than Encouragement.
In both branches OF trade, the symp-
toms indicate a readiness to resume
business Upon an active scale so soon rs
these legislative restrictions arc 70.
moved. 1t is conceded more'and more
that there is a large measure OF pur.
chasing ability among the community
at large; and that naturally leads TO the
inference that, when this long pro-
tracted restraint upon both production
and marketing is withdrawn, there
must be q very sharp rebound OF activ.
ity, in order to recruit the supplies that
havo been subjected to 4 twelvo-months'
curtailment ranging between % and 40
por cent But while these prospects are
counted upon with almost entire ina
nimity, tho fact that they stand forward
some four or five months in tho future
prevents them from being discounted
in Wall street operations, and i~nclines
spectators to q Micawberish attitude.
1t remains to DO seen whether the
prospects OF bank motto legislation may
become an element in Wall street
movements. There al DO 10 doubt
that this question is receiving more
serious attention in banking circles
than it has hitherto. 1t has so far
been discrcdited, because there was ap-
parently no chance for q conservative
and yet effective measure being adopted
by the present Congress. Plans, how
ever, have been introduced in the house
which are daily gaining confidence for
their safety, whilst the faction favoring
the unconditional repeal OF the 10 per
cent tax is in q steadily diminishing
minority. 1t thus seems possible that
something may be expected in this way
calculated to relieve tho very uusatis-
factory condition Of our currency sys-
TEN. and to nationally satisfy the clamor
for more mouey" which has hitherto
expressed itself chiefly in q demand for
more silver. The rising tendency in
this direction deserves watching: for
there can be no doubt that any meas
ure calculated to increase the elasticity
OF the currency and to diyert from it
the dangers connected with silver infa.
ton, would affect fayorably all kinds OF
investments.
Concerning tho immediate future OF
tho market moderation is advisable.
Tho chief, il not the only, drawback to
a further rise is the continued decrease
in earnings, or Q lack Of freight 1t is
true tratticis improving and must keep
pace with the expansion In business,
but tho latter hea been slow and disap-
pointing. Strong efforts are still being
made to maintain rates, but under pres
ent conditions more or less cutting
seems inevitable. Ever since August
Inst, or for seven months, earnings have
shown decreases in gross, varying from
10 to Is per cent, For a time it was
possible to offset these losses by cr.
treme economies and postponement OF
ordinary OUTLAWS. The limit OF adyant-
age in this respect has been reached;
and il dividends arc to be maintainedit
must DO either through better traffic
or lower wages. The latter contingency
is certainly to be avoided; for it would
mean i long and wasteful struggle, and
fortunately tho outlook is bright
enough TO render that only a remote
possibility. One road has alroady re-
ducod its dividend and others may fol-
low. This. however. will not be a sur-
prise; such q result having already
shown itself in present low prices. 1t
must not DO forgotten that at these low
prices stocks have fallen into strong
hands. Investors may not be willing to
buy, but the large holders show a de-
termination to sell, which augurs well
for tho future Of tho market. In IN
abundance OF money at low rates they
have q powerful aid, with which they
can. easily stem any decline until nat
ural influences again assert themselves