The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-07-12
SPECIAL Correspondence.

SPECIAL Correspondence.
NEW YORK, July 1O,-The stock
market experienced fair reaction un-
der sales to realize the handsome pro-
FITS offered by the June rise. Efforts to
depress values stlll further by repeated
bear raids had little effect, Confidence
has already revived far enough to eff
fectually check any prolonged down
ward movement, and those who hold
stocks cannot be induced to sell. OF
course this welcome change of sentl-
ment Is based on the conviction that we
are on the eve of genuine recovery in
business, The prospects OF such a
change are Frightening daily. Crop
reports are satisfactory and the farm
ers are likely to have plenty OF wheat.
corn and cotton to sell and to secure
better prices for them than lately.
From all parts OF the west come en-
couraging reports OF the business out
look. Industry revives slowly. but the
Improvement Is real and promises to
make Roadway. Later troubles cause
some hesitancy on the part OF new en-
terprises but these have not yet assum-
ed very threatening aspect, The tar
III question IS sure 20 b. adjusted In
time to avoid hamperlng the fall trade,
and once this troublesome question Is
settled. business can be transacted with
out regard 10 political opinion. We are
now In the dullest season OF the year.
and several weeks may elapse before
trade starts up with any degree OF en-
ergy, but the symptoms OF recovery are
unmistakabie. Railroad earnings, bank
clearlngs and other Indications all being
In striking contrast with year ago, to
say nothing of the wonderful change
from fear to confidence which must
sooner or later express itself in action.
Five years ago, we were verging on
the beginnings OF one OF the greatest
commercial and financial reactions In
the history OF the country, The setback
was due not only to the evils OF the sill
yer imitation consequent upon. the act OF
July, 1880. and the agitation In favor OF
free coinage that has followed nor to
the treasury troubles growing indirect
" out OF those conditions, nor to the In
fuence OF unsettling politics and the
amperilied state OF our foreign relations
-LutTt was u ittpNl uHh
tial force at work in the great revolu-
tion In the processes OF production, IN
VolVlng an immense increase in produc-
ton without corresponding growth In
our ability to consume and thus forcing
an unparalleled decline in prices. A
disturbance proceeding from such q
multiplicity of causes, and so deep,
widespread and fundamental must re-
quire more time for readJustment and
the return OF sound condition than has
been found necessary for recovery from
our ordinary panics. 1t was an indus
trial, commercial an agricultural and
q financial crisis all united in one; and
each great branch OF activity was thus
incapacltated for helping the other
towards recuperation. There Is now,
however. abundant evidence that five
years has sufficed to bring back nat
ural forces to their normal play. On
all sides, these arc the signs OF com
pleted readJustment to the new condi-
lions that have grown out of the pro-
tracted chaos, and It is therefore i'm
portant to ascertain just how we stand.
in respect to the investment interest,
as compared with five years ago. Our
railroad industry perhaps, affords the
best means of illustration, Turning to
the month OF May 1892, we find that 142
roads showed total of gross earnings
amounting to S204.0OO.0O0. For the same
month OF this year, 1870 roads report
gross earnings aggregatlng 100000
This shows O slight gain In the rate of
gross income. but not to an extent COM
mensurate with what would have been
realized under ordinarily prosperous
conditions. AS to net earnings, we find
that in April. 1892, f27 roads showed
$685., 900. whilst for April. 1897. the sum
of sl6,045,0OO was earned, net, by 1884
roads. These figures show that the sta
tus OF the business OF the railroads falls
below that of five years ago: but hess
so than might have been expected from
the severity of the depression through
which the country has passed.
The value OF shares has fallen and
now stands much below the relative de-
crease in the earnings, whether gross
or net. OF the railroads, Taking 1892 as
representing the value of these securit-
les during a fairly prosperous period.
very large advances in prices must be
made to bring values up to the stand
ard OF five years ago. OF the twenty
four stocks quoted, twenty-one show
decline below 1892: five stocks exhibit a
fall OF from two to ten points, and six
teen declines ranging between ten and
fifty-three points These facts Illus
trate the distance between the present
status Of values on this class OF secur-
tiles and that which existed previous to
the beginnings OF the crisis. This diff
erence measures the margin for adj
vance before stocks regain the valun-
ton from which they have fallen. With
such n large existing depreciation, Il Is
a reasonable inference that, II we are
now on the way towards general and
sound recovery of business, We have be-
fore us the prospect of stlll import
ant advance in prices, to be realized as
conditions steadily improve.