The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-07-22
FINANCIAL REVIEW.
Hdpry oIows's Weekly Letter on
the Business Outlook.
SALIENT POINTS, OF THE MARKET
An Inauenoo Susceptible of AIlsrop,
rOsOn'atIon and tho Cause OF Need,
lo's DIutrust-AlI Things oonsld.
orod tho Situation Gao That Calls
For Prudence Ia Buying,
sp.eIaI COrapondene.0fMe hlsNiasne.,.

NN-Ns AAA
ket 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
stages when the speculative element
comes in asa legitimate and wholesome
regulator. In the present upward move.
ment that stage has arrivodi and pru-
dent operators will recognize that the
causes which have been carrying up
prlceSa at such a rapid rate must now DO
subject to test and check by expert
operators VerIed In all tho arts by which
q speculative position eau DO attacked
and weakened.
Tho salient points Of the market are
these: Q) Prices have already made
a very large advance, and tho holders
Of stocks could, Us a rule cell out at UNI
usually handsome prices. 1t is there.
fore reasonable TO suppose that some OF
them will realize upon at lealE a por-
ton Of their holdings, in case OF per.
slstent attack from the bears" (9l
Some large sales Of Tong stock have
already been made by shrsWd "bull'
operators, and 1t would DO only ex-
port tactics on their part to give aid
aud comfort to the enemy in its Us.
saults on tho market, as u means OF
buying in again at q lower range OF
prices. (2) Apart from speculation, It
may perhaps be fairly conceded that,
upon tho whole, the Lowell OF prices is
up to what is warranted by tho last
five months OF improvement IN Condi.
tious. az The prudent class Of opera.
tors are likely to conclude that 1t
would DO dubious policy to buy at
present in anticipation Of future further
Improvement in conditions, or until at
least the market has been so far tested
as to show its intrinsic strength. (5)
They are the more disposed TO take
this attitude OF waiting because certain
important factors incident to this sea.
son OF the year are Just now In a state
Of uncertainty. l hore refer moro es.
peciRlly to tho conflicting reports about
the cereal crops, and especially to tho
inpossibility OF forecasting the outcome
OF the great corn crop. These points Of
uncertainty are tho more important be.
cause the present prices Of stocks repre-
sent a sanguine Interpretation OF the
crop prospects. (6) Tho expected early
completion OF the reorganization OF
bankrupt railroads suggests questions
upon which there Ia some difference oil
opinion among professional opera.
tors. On the n side, 1t Is main.
tanned that these adjustments 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 reAlizinHs,
they reason, will have u tendency to
| check any advance from these antiCl.
pated new influences. On all these
points thGrO are differences oil opinion,
and ii lie those differences, in place Of
tho hitherto unanimous "bull" feeling,
| that gives to the situation, for tho mo-
ment, a tone Of uncertainty and pre-
pares the way for oscillations in pricos.
Beyond these influences, there is an.
other that IL susceptible oil mich mis-.
representation and Of being made tho
| cause OF needless distrast. The period
is approaching for the formal termina.
ton OF the obligations OF the part Of
the loan syndicate towards the govern.
ment. That conclusion will leave the
treasury with a stock Of gold more or
less in excess Of tho legal limit; but
whether any provision Of a more or less
permanent nature will DO made TO pro.
tect tho reserve against Withdrawals Of
| gold for export has not yet been for
mally made known. The reputation Of
the syndicate and the large corporate
undertakings 10 which its members
have committed themselves In conse.
quence OF tho recovery OF confidence
make 1t inConceivable that tho great
bankers should permit the treasury to
lapse back towards its late emparrass.
lnents. Tho consequent suffering to the
government and to tho country aud to
| our foreign credit, in the event Of suCh
a relapse, sonvey tho strongest possible
indirect ASSURANCE that tho members Of
the syndicate will yet find tho means Of
guarding tho treasury by somN perina.
nont form OF protection. But thore IL
always a class who, under circumstances
that call for faith In honor aud patriot.
ian, arc disposed to foster diStrnst and
to suggest peSsimiStiC apprehenstons.
The "beRrs" may DO expected 10 follow
such tactics ut present; and there will
DO a class Of timid, ignorant aud disal-
iectod people who arc disposed to fol.
low thoir lead, and the moro so should
thoy eco gold Gctitionsly exported In
order to excite this sort Of distrust.
There iS one fact, however, that will
weigh more 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, 000o Of our securities, which they have
transferred to European investors, and
are likely to still further augment those
negotiations.
All things taken into consideration,
tho situation 10 still Quo that calls Tor
prudence in buying, ut least until ag.
| gressivcnoVs Is Transferred from tho
"boar" side TO tho bull" side Of tho