The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-09-27
sneclnl corresnondence.

Special Correspondence.
NEW YORK, Sept, 25.--Ea our last
advlees, we called attention TO certain
dangers connected with the speculative
conditions OF the stock market, especial
~ to the large expansion OF purchases
and the undue forcing up OF prices
arising from the use df unreali2ed pro-
fits as basis of margins. The subse-
quent course OF operations has proved
that our warning was not untimeiy and
that It has not been UNDECIDED Large
lenders OF money. and notably certain
banks which lend freely on stock eX-
change securities, have had their eyes
open and taken means for inducing
conspicuous operators, who wero carry
ing thrcateniDgly large lines of stocks
70 reduce their holdings to more con-
seryative limits
This intervention was wise and has
had the effect OF producing a healthier
distribution OF securities Apart from
the fact that the large outflow OF mo-
ney to the interior, with the apparent
certainty of further large shipments
which suggested the possibility OF
coming stringency In the money market
Ii was plainly ont OF the question for
large lenders 10 advance without STINT
10 few bold operators who were carry
inG stocks to an overloaded extent In an
effort TO produce sudden and unrea-,
forabfe Initiation IN prices, which they'
had no means for sustaining In the
event OF adverse conditions appealing,
The banks have been losing S5,OOO,OOO
q week from their reserves In satisfying
the wants OF the interior. and, IN view
Of the large receipts OF grain and other
farm products, the outflow may easily
be conttnuea at about that rate Tor
some weeks to come, The present
amount OF the bank reserves, though
liberal as compared with the same date
OF former years. is suggestive Of conser-
vatlsm IN loans; and, for that reason u
Is equally suggestive of caution on the
part of operators against oyerIoadins
themselves with stock.
In years of prosperous harvests, there
is always an active speculative buying
o. stocks so soon as the harvest is as
sured. At the same time there Is also
an unusual demand upon the city banks
for currency to move the crops A point
is thus reached In the early fall, at
which there comes conflict between
the money demand from the Interior
md the demand for loans from the
Stock exchange interest. The wants OF
the former class must have the prefer
ence; and almost Invariably the latter
class have TO contract their loans nj the
cost OF a spasm In the stock mufket'
As usual this rule IS now being disre-
garded by stock operators; and the N-
perience OF the past week has been
reminder of the penalty OF the lack Oh
circumspectior. The period at whicn
wall street may hope 10 reap the tul
fruits of an abundant harvest, Is wheh
money begins to How back from the IN
terror which, probably, VIII not occur
this year until about the end Of octo-
Der.
The action Of the banks has been
timed with much prudence and consid-
Grafton. Had Il come nt later stage
tho oyerloadlnE by sanguine operators
would have reached worse excesses
the contraction OF loans would have
been seized with n violent CONFUSION,
with consequent heavy losses and more
or less shock to general business. Ia
ken IN time. however, this regulatory
handling has been administered when
operators we're stil able 20 accomma-
date themselves to t. The large holders
have been able to reduce their holdings
without creating any spasm or distTust
and, within three or four days. the
stock market has been readjusted unon
a more conservative basis with as
turbance of only n few points In prices.
So little has confidence been affected.
that. towards the end of the week. quo
tatlons have in large measure recoV-
cred. As the net result, we have more
nrudept and conservative position OF
speculation. Margins have been
strengthened, holdings have been bel
ter distributed and operators nave a
better understanding as to what dealers
will expect IN the way OF margins. All
this may mean n tanning OF the excess
slve enthusiasm which has carried the
market OF It's feet for the last three
months and It will at least have ten
dency to keep affairs IN safer shape I'M
Ill the return OF currency from the In
terror removes the possibility OF none
tary pressure. In the meantime, On"
couragement may be taken from the
fact that the radical dlscipllnlnE Of
large holders has had such a slight dis
NuTDllk tIlt'A NIbU Allf lAhAN'A' -
shows not only confidence among rc'
sponsibe operators, but also that there
is no lack OF disposition or ability 10
take large amounts OF securities on n
reasonable basis OF prices, whtca
means PFepoaderant conviction that
values have not yet reached maximum
figures. II IS to be hoped however tha,
ibis confidence may not relapse into tho
late excuses II It does, sevorcr twist
OF the money screw may be expected.
The regulatory action Of the banks
and the advance in the rate II interest
has had valuable results outside tho
stock market Although London has
sent home come considerable amounts
OF stock during the week, yet this Item
is small onset against the large bal
aaee of foreign trade IN our favor. The
rise In the local rate AZ Interest has
enabled us to procure gold from EH-
rope. Some S2bOO,OOO due to New York
banks has been ordered rcmittcd IN
specle; and 1i,OOOOOO - expected ut San
Francisco from Australia total con.
trlbuilon Tor the week Of i6,5da888 A:
the moment Of writing, the tatc7 Of ok.
change afford no profit on the lmportl-
ton 6f Reld and the nanA Of ENGLAND