The Republican. [volume] (Oakland, Md.) 1877-current, 1894-10-11
FINANCIAL REVIEW.
Henry Clews' Weekly Letter on the
Business Situation.

by the unsettled condition of the
finances of certain Of the trusts,
while railroad shares have been
comparatively neglected. The class
of large operators remain compare
lively passive, and show no objec-
ton to the clears disporting
themselves in making pretty raids;
first because their attacks make
little impression, and next because
any fall IN prices they may effect
only affords an opportunity for ad-
vantageous buying, which the
"bulls' seem quite ready to turn to
account.
Although there is at present
nothing out of which to make
really active market, yet in certain
important respects the position
amounts to a "bulF' situation.
For, although the business of the
railroads has not yet returned to its
usual volume, yet it is still recov-
ering, and there is large volume
of freight in prospect for the COM
ing months, and the range of prices
is low enough to amply set off the
current relatively low earnings.
Besides, the amount of floating
stock on the market is very excep.
tionally light. This is remarked
by the banks, who are receiving an
unusually large proportion of bonds
in their collaterals (perhaps as set
off against rattle-trap industrials),
and a much smaller ratio of rail
road stocks. The same fact is APP
parent from the difficulty expert
enced by the clears" in borrowing
stocks and the frequent squeezes to
which they are submitted. This
scarcity is naturally an element Of
strength; and still more so is the
extraordinary facility with which
money can be borrowed on time.
Moreover, there is nothing in sight
to suggest an early change from this
abundance of money. These fac
tors favor the "bulls'' as against the
"bears;" and it would not be sur
prising if the latter soon changed
sides, so as to produce a range of
prices on which they could sell to
better purpose.
Pending the dullness of the local
market, there is more than usual
interest in the disposition shown
towards our securities at the foreign
centres. Abroad the excessive ease
in money is encouraging to specu-
lative transactions, and prices,
though already high for the better
class of investments, are steadily
rising. In London, the specula-
tive spirit is encouraging the launch
ing of new corporate undertakings.
The amount of new "capital appli-
cations averages over 100000
per week, and for the first nine
months of the year aggregated close
upon 100000, 900, against 933, 900,
900 for the same months of 1898.
This, it is true, is much below the
usual rate of new London issues;
but it shows quite distinct revival
of enterprise and investment. The
home trade of England also exhib-
its reyiving tone, with a strength
ening tendency in prices. The
marked recovery of confidence
throughout Europe in the mainte-
nance of pacific international poll
cies seems to be somewhat checked
by the reported serious condition of
the Cars health, but it is not easy
to see why that should not rather
benefit New World investments
than otherwise.
Judging from the tone of the
London press, the feeling of dis
trust towards American securities,
occasioned by the current numerous
railroad recelvershlps, has begun to
abate. There is more disposition
to buy our securities, but transac-
tions show preference for the bet
ter class of stocks and for bonds.
AS the traffic of our roads improves
and our general trade RECEIVERS, this
mo 7ement may easily extend to the
more actlye shares and become the
basis of something like the former
speculative movement between New
York and London. The present
unsettled condition of politics in
this country no doubt has some
effect upon those of our investments
which rank below the position of
absolute security; but the history of
our legislation affords so many evil
dences of a common-sense result
coming out of erratic ferments of
public opinion, that London imam
ciers should know how to take our
present surface currents of political
sentiments at their true value.
The recovery of trade following
the passage of the tariff act appears
to have exhausted its first effects on
Wall street. The two months of
active distribution of merchandise
has sufficed to meet the immediate