The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-07-22
FINANCIAL REVIEW.
Hdnry oIsws's Weekly Letter on
the Business Outlook.
SALIENT POINTS OF THE MARKET
An Inauenco Susceptible of NIIsrep,
FosontatIOn and tho Cause OF Need,
less DIstFuSt-AlI Things oOpsld.
cred tho Situation Ono That Calls
For Prudence Ia Buying.
speetal corapon4ln.oftA4 Mnpig.ne.,.

W. NFH~fNNaHNsANt
NEw YoRK, July 9O,-The stock mar,
kst is, at this moment. following the
laws Of speculation rather than those Of
Investment In all great fluctuations
in the price OF securities, there are
stagca when the speculative element
comes in as legitimate aud wholesome
regulator. In tho present upward movo.
ment that stage has arrived; aud pru,
dent operators will rsCognise that the
causes which have been carrying up
prlceS at such arspld rate muHI now be
subject to test and check by expert
operators vsrSed In all tho arts by which
q speculative position eau DO attacked
aud weakened.
Tho salient points Of the market are
these; ~ Prices have already made
a very large advance, and tho holders
OF aIocks could, Us a rule sell nut at
usually handsome prices, 1t Ia there.
fore reasonable TO suppose that sOme OF
them will realize upon at least u por-
ton OF their holdings. in case OF per.
sIstept attack from the bears" (9l
Some large sales OF "loug' stock have
already been made by shrNWd "bull'
operators, and 1t would DO only ex.
pert tactics on their part to give aid
aud comfort TO tho enemy in its u.s.
saultS on the market, rs a OF
buying In again at a lower range OF
prices. icy Apart from speculation, 1t
may perhaps bD fairly conceded that,
upon tho whole, the level Of prices is
up to what is warranted by the last
five months OF improvement ia condi'
tions. az The prudent class 0l opera.
tors arc likely to conclude that 1t
would DO dubious policy to buy ut
present in anticipation OF future further
improvement in conditions, or until at
least the market has been so far tested
as TO show It's intrinsic strength. t5l
They are the more disposed to take
this attitude Of waiting because certain
important factors incident TO this seat
son Of the year are just now in q state
Of uncertainty. l here refer more es.
pecially to the conflicting reports about
the cereal crops, and especially to the
inpossibility OF iorecasting the outcome
OF the great corn crop. These points OF
uncertainty are tho more important be.
| cause tho present prices OF Stoke repre-
sent a sanguine Interpretation OF the
crop prospects. 10y The expected early
| completion OF the reorganization OF
bankrupt railroads suggests questions
upon which there Ia some difference OF
opinion among professional opera.
tors. On tho n side, 1t Is main.
tanned that these adj ustments will OK.
cite u graat deal OF speculative activity
and an upward speculation IN the so.
curities thus restored to the market,
On the other side, it is argued that, in
order to operate in these restored
stocks and bonds, the holders OF other
securities will have to coll out their
present stocks; and those realizings.
they reason, will have u tendency to
check any advance from these antici.
pated new influences. On all these
points there are differences Of opinion,
and IL is those differences, in place OF
tho hitherto unanimous "hull" feeling,
that gives to the situation. for the mo-
ment, q ont OF uncertainty and pre-.
parea the way for oscillations in prices.
Beyond these influences, there is an.
other that is susceptible oil much mis-
representation and Of being made tho
cause Of needless distruIt. The period
is approaching for the formal termina.
ton Of the obligations OIL tho part Of
the loan HyndiCato towards the govern.
ment. That conclusion will leave the
treasury with a stock Of gold more or
less in excesa OF tho legal limit; but
whether any provision OF a more or less
permanent nature will DO made TO pro.
tect the reserve against Withdrawals OF
gold for export has not yOt been for.
mAlly made known. Tho reputation OF
tho syndicate and tho large corporate
undertakings 10 which ita membera
have committed themselves In conse-
quenCe OF tho recovery oil confidence
make il Uncomfortable that the great
bankers should permit the treasury to
lapse back towardA its late emparrass.
ments. Tho consequent suffering to tile
government and 10 tho country and TO
our foreign credit, in tho event OF such
n relapse, sonvey tho strongest possible
indirect assurance that tho members OF
tho syndicate will yGt fluid tho means Of
guarding tho treasury by soma psrma-
mont form OF projection. But thore is
alwaya a class who, under circumstances
that call for faith In honor aud patriot.
ism, arc disposed to foster diItrust aud
to suggest pcSsimistic approximations.
The "bears" may DO expected to follow
such tactics ut present; aud there will
DO a class Of timId, ignorant and disat-
iectod people who arc disposed to FOL.
low thoir lead, and tho moro 80 should
they eco gold GCtitiouSly exported in
order to excite this sort Of distrust.
There Is one fact, however, that will
weigh moro In the scaloI Of common
sense than all these "bear" arguments
namely, that since the syndicate con.
tract was undertaken, parties TO that
contract have become sponsors for $780,
600, 900 OF our securities, which they have
Transferred to European investors, and
are likely to still further augment those
negotiations.
All things takOn into consideration,
tho situation Ia still ono that calls Tor
prudence in buying, ut least until ag.
greHsivenOVI Is Transferred from tho
"boar" side to tho "bull" side Of tho