The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-05-20
spetial cO,rsponatnet Of a. lntAllntnn,

Special co'rypondtnee Ofthe intelligence,
Nav ionE. May lS-Durinr tho past
week, Wall streot has had another
squirt OF realizing, In which London
also has Joined. and with tho effect OF n
general decline in prices, especially in
the lower priced stocks. And yet tho
effect has not boon dispiriting, nor such
as to eau,o any lack Of confidence In tho
future. Tho past realizing. seem to
have followed tho mere idea that, whom
prices show 4 considerable advance. /.
is tho safest policy to pocket profits.
And yet, attcr these successive settings.
out, there has zach time boon n renewal
oioaeer buying; nor docs II aeo,n likely
that tho Gales OF tho past week will
prove to be an exception to that rule.
h market has Bome remarkable ica.
tures, which do not seem 10 DO %gcnerul-
ly understood. Few OF those who have
been buyers have had any very decided
idoa why prices should have risen as
much as they have; aud 10 most II has
boon a matter Of surprise that quota.
lions should so promptly take a higher
bound alter each turn OF realizing.
Judging from mere ordinary reasonings,
somo are now disposed to think that a
resting point has been reached, at
which the market should DO tested and
observations prudently taken OF the
coming financial weather. And yet It
is moro than likely that, in spite OF
themselves. these same cautious OBJ.
servers will o 0 find themselves again
buying.
There are unseen forces behind the
market which few understand, aud the
force Of which still fewer appreciate.
Those, forces started the movement
when 1t was little expected; they have
carried it forward with unexpected mo.
mentum; they have scarcely been aus.
pected by tho most %sanguine bulls :"
and l venture to predict 1t will be found
that they have o yet exhausted their
energy. These influences began to
show their ei!ects three months ago,
and were ushered ia by tho operations
Of the loan syndicate. They are not,
however. to be attributed wholly, nor
oven principally, TO the negotiation.
The syndicate really did little moro
than prepare tho way Tor tho working
out OF tendencies previously existing,
but which had been held in restraint
by the deranged condition OF the sreas-
ury finances and the consequent mis-
eivings about the currency. Nor has
this remarkable revival been so largely
attributable as many have supposed TO
the abatement OF doubts about our abii-
ity to ward oil tho silver dangers. That
has bad IN important influence un-
doubtedly; and yet its effect has been
but secondary. The real causes lie
deeper. 10 find those causes, we must
90 back to the conditions that produced
the great commercial depression which
has existed since 1892 in this country
aud since 1890 in Europe.
That depression was tho result main.
ly OF universal over.production. The
ever.production was the consequence
OF q large excess Of producing plant,
growing ont OF the progress OF modern
invention. The over-supply Of machin.
cry has been So universal and so great
that the capacity for production atill
largely exceeds the possibilities OF con.
sumption. Industrial investments, ex-
cept in the case OF a few monopolies, are
consequently earning almost nothing;
n from that two important results
follow;-in the first place, an unprece-
dentedly low rate OF interest on indus
trial capital; and. in the next place, the
withholding OF now capital from indus
trial employment. These results in
volve the further consequences Of estab-
fishing a reduction in the market rate OF
interest which NAV quite possibly DO
long continued; and investment is be-
ing diverted 10 securities which are ex-
empt from the evil Of over.supply.
Such an exemption is found almost
alone in railroad securities. There has
been quite a iuroro in London on Afri-
can gold mining stocks; but that excite.
ment has exhausted itself, and nothing
remains, either for speculative or in.
vestncnt purposes, except the long.
neglected railroad issues OF the United
States. Within the last five years, the
yearly construction OF new railroad in
this country has averaged barely 5000
miles; while, for the ten previous years,
the yearly increase averaged 400 miles.
The current rate OF railroad construc.
ton ia thus far below the ratio OF in.
crease in commerce. It is true that tho
earnings OF the roads havo fallen very
low; but it is also true that prices have
fallen proportionately. and also that
their receipts are now beginning to
show n material increase, in sympathy
with the recovery OF general business.
These facts seem 10 mark out railroad
securities rs a form Of Investment des-
tined to receive q special preference un-
til prices have reached a point that
will bring their yield to about n parity
with that Of the investments which ars
, now suffering in prodnciivonos'. This