The Republican. [volume] (Oakland, Md.) 1877-current, 1894-09-06
FINANCIAL REVIEW.
Henry Clews' Weekly Letter on the
Business Situa ion.

markets have, during the past week,
shown a partial reaction from the
advance and the activity immedi-
ately following the settlement Of
the tariff question. 1t was natural
that an advance, after such a long
period of dullness, should be fol-
lowed by sales to realize profits. A
luxury so long out of reach was
seized with prompt avidity, and the
consequent decline in prices has
been encouraged by "bear'' sales.
One fact, however, deserves to be
noted as a symptom of the market.
The realizing has been mostly by
the smaller class of operators. who
had bought for "turn" upon the
prospect of the passage of the tariff
bill. The large holders, who have
been carrying big lines of stocks,
bought around panic times and
held ever since, have as yet sold
very few stocks. They appear to be
of the opinion that the real advance
is not to be expected upon the
transient sensational effect of the
first settlement of this question, but
upon the later effects, arising from
the outworkings of the readjust-
ments and the general expansion of
business. The starting up of man
ufacturing and merchanting now
apparent on every hand is, with
them, a reason for expecting a per-
manent revival of confidence, an in
crease in the earnings of the rail
roads and improving dividends
upon corporate capital generally.
That, the capitalists holders con-
slider to be the true time for real
ling; and, with money still
abundant and cheap, they see no
reason for parting with property
which few weeks or months hence
is likely to be worth much more
than 1t would bring upon large sales
to-day. Another motive influencing
this class to cling to their holdings
is the fact that, owing to the large
amount Of stock held Stagnant
through receiverships, this is, and
for some time must remain, a COM
paratiyely narrow market, not best
calculated to draw into Wall street
a large outside interest. The prac-
teal significance Of this factor is
that, until considerably higher
range of prices is reached, the
market is likely to be sustained by
comparatively light offerings Of
stocks and by the countcnance of a
very influential class of holders.
The crop reports show improving
prospects for the railroads. The
latest estimates indicate a probable
ity of fully 500,00O,OO0 bushels of
wheat. Up to the goth of August,
the crop of corn was estimated at
about l 800, 100000 bushels; but
later conditions have encouraged
the hope that the yield may prove
to be close upon an average. So
far as respects transportation IN
terests, the increase in wheat,
amounting to something near
100, 100000 bushels, will probably
quite offset any possible falling off
in corn; for, relatively, a smaller
portion of the corn crop than of the
wheat crop is subject to long hauls;
and the large increase in the latter
crop Will have to travel from west
to east for export. 1t therefore
would not be surprising if the earn
ings Of the railroads out of this
years crops quite equal those of
average years. So far as the crops
affect the farming interest and Its
ability to purchase supplies at the
east, the chances are much better
than they were earlier in the season.
If the price of wheat is low, yet its
yield is now estimated at twenty
five per cent greater than last year S;
and, for any reduction, of say ten
per cent, in the crop Of corn, there
is, at present, the compensation Of
an advance over last years prices Of
the same date of fully thirty per
cent. The farmers prospects may
therefore be reckoned as fully up to
the average of late years which,
after all, did not prevent the agri-
cultural sections from suffering
much less than any other under the
trials of last year.
The reports on the worlds crops
made at the Vienna fair are here
generally regarded as materially
Understanding the probable out
put. The opinion gains ground
that the aggregate supply of wheat
from all sources will turn out to be
the largest in the worlds history.
Should this prove to be the case, it
will afford a valuable help towards
the abatement of political discon-
tent and the recovery of depressed
industry among the European
nations. In England, Germany,
France, Belgium, ETC., the recovery
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