The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-10-04
speeIaI corresponaenee.

------
Special Correspondence.
NEW YORK. Oct, 2.-During the past
week. the course OF the stock market
has been irregular with continued
drift towards lower prices. The reae-
tIonary tendency that set in abou; a
week ago, has been continued ard a
large amount OF realizing has been ef-
feeted with considerable sall In
prices. This tendency appsnrs 10 have
been due entirely to causes intrinsic to
the position of speculation, rather than
TO any external factors affecting values
AL OF which have been encouraging,
AS already indicated In these ndyices,
the great recovery In the material con-
ditions OF the country at large have
produced speculative excitement
which has outdone Itself This spirit has
gone from buying 10 buying In eXpec-
tation Of q range OF prices that could
not be reached In few days or weeks,
but must wait upon the corporation Of
the conservative "bulr sentiment which
In the long run alwaya controls the
course of values. The large profits
made In the first three months OF the
advance encouraged class Of tneSper-
fenced outside operators to pile up their
holdings through using their profits as
margins, thereby producing a dangerous
imitation which could only result In n
violent reaction
In this way. It has come to pass that a
large amount of stocks have passed In
20 comparatively weak hands. Opera
tors Of larger means and more cautious
methods have thereby been to certain
extent kept out OF the market. They
were unwilling to buy at the high fig
ures created by enthusiastic bulls" TN
able TO withstand reactlonary Influences
and preferred either to maintain 4 pas
sive attitude or to encourage pressure
that would reach stop orders or exhaust
margins I the they have been en-
Outraged by tho policy Of the banks In
keeping down their local loans In order
to meet the large demands for money
from the interior and also by direct
pressure brought to bear upon certain
professional operators who had Inflated
prices by recklessly eXtrav1gant pur-
chases.
There have beer sound reasons Tor
this conservative attitude There Is no
dispute about the change In business
conditions having very largely increas-
ed the value of securities. Nor is II
questioned that the earnings Of the
railroads are very likely to ultimately
reach a point at which even higher
than current average quotations would
be justified. But concedlng all this, II
does not follow that II may be safely
undertaken to realize, at the present be-
ginning stage of the national revival,
the effects that are hoped for as the
outcome OF fuller developments Of the
recovery. Such antlclpatory bulling
takes too much for granted. Prudent
and successful operators prefer to keep
IN close touch with the march OF events,
rather than to assume the certain rea.
lization OF the best that can be lmag-
ined. Also, II Is not TO be overlooked
that there are some important cOntln-
Eencies in the future to which securities
would be very sensitive, The Cuban
question is entering upon new phase,
and we canont fdresee what part our
government may be called upon TO play
in It. The mysterious action OF the
British government IN respect TO silver
and the apparent willingness of France
10 negotiate with us for some expansion
OF silver coinage, or for free coinage,are
suggestive of possible revival of some
distrust upon that very sensitive ques-
ton. Ten weeks hence, Congress will
re-nssembIe, and II is not impossible
that II may afford disappointment of
the hopes entertained by the influential
friends OF sound money. These are pos
stblilties which 10 not encourage prn-
dent men to discount many months In
advance the most sangulne calculations
OF the future. Besides, this season OF
the year Is never the safest for under
taking excessive bull speculations.
From twenty to forty millions Of cur
rency has usually to be sent 70 the west
and the south, so that the reserves are
liable 20 then reach their lowest point;
aud to force UP prices OF stocks extrav-
agantiy I'm the face OF declining reserves
is very unpromlsing undertaking.
These are the ideas that have lately
been gaining nscendancy In the stock
exchange They have reached the
commission houses. and customers are
seeking to protect themselves by taking
their profits It Is prudent movement
and win result IN a sounder and safer
condition OF the market. The extent of
its effect may be inferred from the fol-
lowing comparison OF che highest prices
OF leading stocks on September 18th.
with the lowest Of September 20.