The Providence news. (Providence [R.I.]) 1891-1906, 1898-05-20
THE WAR AND
WALL STREET
Periods of Great ElatlOn
and Depression.
EFFECT OF CURRENT NEWS
From Day 10 Day II Is Very Heavy
on the Money Changers.
EFFECT OF CURRENT NEWS
WAR IS NOT REAL TO THEM YET.

NEW YORK, May 30 0.-fSpccial lover
and over again since the breaking out of
hostilitics it has been proved to the credit
of Americans that we are not an overly
mercurial people nor given unduly to hys-
terical excitement,
But 1t must be confessed that Wall
street, by which Is here meant that part of
the business community only which Is de-
voted to speculation In stocks and securi-
ties has been first depressed and then
buoyant from day to day In strict accord
ance with the current war news. IL has
seemed from the beginning to the present
time, in fact, as II the money changers OF
the metropolis have believed that the con
clusion Of the war and the future OF bust
ness rested each day almost entirely upon
the news from the front received on that
particular date.
Wall Streets Fluctuations.
Dullness deadly and paralyzing began
to settle down upon the Stock Exchange
on tho date of the blockade's beginning,
April 90, and increased steadily with each
succeeding day for period of about two
weeks, or until the arrival on May z, of
detailed news from Commodore Dewey
that he had actually done all and more at
Manila than had been reported. As soon
as Deweys report was received. however,
there came u great reaction. On the pre-
vious day transactions or the exchange
had reached very low ebb, only SS, 900
shares changing hands. Next day there
were transactions In $50, 900 shares, or
nearly four times ms many, and a some
what similar state Of affairs obtained with
regard to bonds, the dealings therein be-
ing more than twice as large ON the day
after the reports reception as on the day
before
This sudden change from virtual torpor
to fcverish activity, this revival, was not
a matter Of only day or two either.
There was steady increase OK hustle and
rush on the floor of the exchange till the
close of the week, the transactions one day
reaching the high aggregate of 400, 900
shares, not high water mark, to bo sure,
but yet high enough to remind every one
of "the good old times and bring smiles
of delight to the faces of brokers all, both
great and small.
Money, which had been phenomenally
tight looscned up wonderfully, too, and,
while 1t was difficult before Dewey's re-
port to borrow at per cent, within two
days thereafter it was possible to ''get all
you wanted without difficulty, to usc q
phrase of the street, at 4.
War Yet an Illusion.
It has been virtually the same ever
since. The slightest bit Of good news has
caused everything to boil In Wall street.
Bad news has caused slump Of moro or
less magnitude, according TO the impor-
tance of the news. Until Dewey proved
that Americans know how to shoot and
are not afraid to fight Wall street was timid
beyond what Is written.
When both these facts were known to be
eternally true, Wall street accepted as q
forcgone conclusion the dictum that the
Spaniards are such feeble folk that moth
ing of momopt need be expected from
them while the close of the war must be
a matter Of only few weeks or perhaps
days When the news of the killing of En-
sign Baglcy and four Of his brave COM
panions on tie Winslow-sad indeed, but
only slight forctaste of what must inevi-
tably happen before the war Is over--was
receiv ivcd, there were tremors again. Only
few such dispatches as were received al
most daily In civil war times wcrc needed
ARE needed today, In fact--to throw the
whole brokerial force of New York into a
veritable blue funk.
"Yet IL may be said truly, in my opin-
ion," declared n veteran of the street I'm
the writer's hearing today, "that the Wall
street men of 1893 have formed only the
faintest conception of what war really Is.
The struggle between the United States
and Spain is 80 far only sort of Illusion
to them, a something whose greatest inn
portancc lies In Its relations to the street.
have no doubt that the present war still
seems misty unreality to the great mass
Of the people, too, though 1t cannot be so
in the cases OF those whose friends and
relatives have gone to the front either In
the volunteer army or on board the ships
Of our navy.
Faith In Moneys Power.
zone of the causes for quick recovery of
spirits by tho run of Wall street men,"
continued the veteran, "has hitherto lain
In the belief that the money kings of Eu-
rope, assisted perhaps by the kings en-
throned, would not permit tho war to con-
tinuc, since it's prolongation must cause
such tremendous Interference with busi
ness.
"That tho power of tho European bank
ers Is sufficient to stop hostilitics were 10
exercised In earnest many of the younger
Wall street men do not yet doubt for
moment This notion is comprehensive,
since for period Of 30 years OF measurable
peace the world over the power of bust
ness interests has been supreme. II should
be said for the real financiers of New
York. the bankers, especially the older
ones, that they do not share this notion TO
any extent. There was = time some weeks
ago when they had hope that Spain might
be controlled through her creditors, but
that hope has now virtually disappeared.
Bankers now look to sec Spain hold out
until thoroughly thrashcd, unless she
finds IL impossible 10 continue resistance
by reason OF internal disscnsions or finan-
cial bankruptcy. Should either OF these
causes bring the war TO n speedy and fav-
orablo conclusion or should the United
States win n decisive naval victory, then
the Wall street brokers, especially the
younger men, win never probably reach
much clearer idea of what real war Is thnn
they have now. Otherwise they are likely
10 experience periods OF nervousness beside
which the trosnors through which they
have already passed will seem Of mighty
small account"
The esving~ Bank.
Tho fcciipo ~ tho Savfpoa banla apJ