The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-09-20
s,ocl,I Correspondence.

street, with a complete ascendahcy OF
the bull" element, continued defeat
and loss to the bears" and further
considerable gains In prices. The specu-
IatIye movement continues to broaden
and orders froA the interior are upon
scale perhaps never equalled in the his
tory OF Wall streets greatest booms.
Coming concurrently with a revival OF
trade the most sudden and complete
that has ever been witnessed In this
country. those having Idle funds on hand
seem to have come To the conclusion
that an opportunity has arisen for US
ing them proftably In transient pur-
chases OF securities, such as occurs but
once in lifetime, With volume OF
demand such as is thus created, the
larger professional operators find no
lack of material for forming pools" for
the manipulation Of stocks upon any
scale that their means may permit; and
they can safely dDend upon the outside
element for cooperating for almost
any advance of price that they may de-
termine upon. The bears" stand no.
propulsion, and their sales and pesslmls-
lie pretenses have only advanced prices.
Even London, after incredulousy I'M
but temporary effervescence
after a long strain OF re-
preston and consequently unloading
upon us some 100000 hures of railroad
stock, has at last been caught by the
Infection, and during this week has
been quite a considerable buyer OF our
issues. Having seen US take all they
had TO sell without a Vince, the British
Metropolitans have come to the con-
cluslon that there is more solidlty than
froth in our boom, and are becoming
eager TO take a hand In our game and
have TO confess that the. time is past
when. in financial operations. London
can control New York
All this has been, from time to time,
foreshadowed In these advices; and
have yet TO discover any evidence that
this great revival has exceeded what, as
a rule, IL warranted by the broad re-
covecy In the national conditions which
regulate the value Of our corporate Sc
curities on the contrary, 10 my view.
the movement is far from having reach
ed its elimination. Yet. ut the same
time, 1t is undesirable that the market,
however regulated by solid considera-
lions, should run into a stage OF unre-
fecting excitement, 1t Is important that
caution should be maintained against
a wild phase of speculatloS and such
caution must be exercised by the buy
ing element Business prudence and cool
judgment cannot be ignored without
danger. The current immense opera
lions are conducted almost entirely up
on credit basis; In other words, upon
margins" The ability to resist bear"
attacks or unexpected adverse condl-
tons is therefore measured by the
strength Of these protective balances in
the hands of the commission houses.
The exposure OF market like the pre-
sent one lies largely In the fact that
persons holding stocks are easily
tempted to use their profits as margin
FOR further purchases. those purchases
tend to further force up prices, and
such advances encourage again further
buying, BY this process prices may be
artillclally forced up without at the
same time providing adequate means.
on the part OF the holders, to support
prices against assault In such con-
ditlon OF the market. II matters little
how much values may be warranted by
bona ilde conditions. The bears" find
the holders carrying more stock than
they can protect under pressure; their
attack Is therefore directed to the ex-
hausiion Of margins; and. that accom-
pllshed, they reap rich harvest while
the oVer-sanguine holders are slaugh-
tered It Is worth considering whether,
from the too-lavish increase OF hold
ings, through this sort Of process, the
way Is not being prepared for bear"
campaign later on which might greatly
change the present hopeful aspect OF
the market and indefinitely postpone
the further advance, which, with pru-
dent moderation in operations. would
he sure to come. A word TO the wise is
sufficient.
The very large shipments of currency
Ia the interior are beginning 20 direct
attention TO the course of the money
market II is true, the reserves are still
ample. but there Is no saying how much
further the shipments of money to Lhe
west and south may run; and, In any
case. the loans OF the banks are expand.
ed to degree never before reached and
continue each week to Increase. Under
these circumstances, It'll gratifying to
witness the drift In the foreign eN-
changes towards the gold.lmporlng
point The government report OF our
foreign trade for the month OF August
shows that we cannot be far from that
stage. The exports Of merchandise for
that month exceeded the imports by
100000. or allowing for net import
Of So 100000 Of gold, by 100000 For
the same period of 1896, the excess Of
o "a
the Imports exceeded the exports bv
100000. Tho amount OF stocks return
cd from London during last month, are
estimated 30 have amounted to value
Of about 100000; which, deducted from
the trade balance above stated, would
leave about 350OOOOO 70 our credit from
abroad at the end Of August It seems
more than likely that this. together
with the subsequent large exceBs Of eX-
ports over Imports. must produce an in
ilux Of gold at an early day. and that to
a liberal extent
At the close NJ the week there II
disposition among the larger holders OF
stocks to fortlfy themselves by partial
realizing. In the present position Of
the market thnt course Ia prudent.
Quite an important line Of stocks have
had Unexpectedly largo advances, and
process OF review nnd testing Of condi.
lions might be- prudent means or pre-.
pairing for hear" assaults which may
he forthcoming. II IL wise to guard
against Ovcr-Hnnrulno expectations A
steady advance is Il far more certain
way ~ reaching the EOnl Of hahcr
prices than snngulno process Of bull.
Ing which invites assault from the pes
Elmlstlc side HENRY CLEWS,
f=---=7==7=-aa==a==7a=s
Wool.
nrndHtrects' The market continues