Arizona republican., 1897-09-16

beginning of the current decade. These facts have been steadily fore ing the readjustment which we TOW see in full operation. They explain the great revival and justify it, by making the movement natural and permanent.
 It is this process which constitutes nine-tenths of the cause of the cur rent remarkable recovery in the mar ket for securities. Other minor causes, chiefly of a political nature, there have been; but they would have produced little visible effect without this radical reconstruction in the con- ditions of production and distribution, of supply and demand, in the com mercial markets. The people find no difficulty in comprehending the mean ing of these new clements in the sit uai-ion; the factors tell their own story to every common-sense observer; they explain to everybody satisfaction the basis of the prophesyings of better times. It is this clear comprehen- sion of sound and natural reasons for expecting an era of renewed na- ticnal prosperity which explains and justifes the present sanguine feeling on the stock exchange. These condi- tfons have made speculation inevit- able, because they have restored to securities all the inherent value they had lost within the last four years of decline. Thus the market needs none of the arts of professional manipula- tion to put up prices. Values rise because the earning capacity of cor pOrationS is increased. and because that increase is seen to be of a bona fide ard permanent nature. If prices do not advance at once to an extent comm ensurate with the importance of the cause affecting them, it is be- cause of the great breadth and di- versity of the supply of issues await ing the improvement Prices can be raised fonly by passing through 6 market process of dealings. Those exchanges have to be repeated in definitely to produce that effect; and when the stock of issues on the mar ket is endlessly varied and enormous in amount the mechanism of finance can accomplish the task only by a process of slow detail and by con- stantly changing operations from one set of issues to another. This must account for the seeming slowness of prices in advancing to a parity. with the improved conditions affecting values; and this it is which affords opportunities for bear manipulations and frequent realizings. But, through all these oscillations, market values must continue to advance; and it may quite possibly take several months before they have reached point at which conservative men will deem it prudent to pause.
 London still hangs on the skirt of our stock market, being alternately buyer and seller. The Bank of Eng land appears to be using it's utmost influence against purchases of securi- ties which might bring some of it's gold to New York. Last Thursday it refrained from advancing it's rate of discount; which is evidence. that it's exposure to losing gold is at least not becoming more aggravated. It is, however, by no means improbable that it may put up it's rate at later stage; for our exchange market is in such condition that the arrival of a few millions more of cotton bills, in addition to the large amount being made against large shipments of cer- calls, might produce imports of gold. It remains to be seen, however, whether the relative rates for money at New York and London might not cause export bills to be bought up here, as when exchange was largely in our favor last year; in which case, imports of gold might be more Or less postponed.
 America is long of crops and shog+ of troubles, whereas Europe is short of crops and long of troubles.