The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-01-31

1000, 600 = CONDITION OF THE
WOOL MARKET. ,s;s
2 81 4 .------------ --- IN
Special Correspondence. 81
NEW YORK, Jan. 2s.---During the,
past week the Wall street market has
taken a sharp upward turn. The move
n,ent has dlsregardeG the furry arising
from sending the man-of-war Maine to
Havana and the sensit.veness created
By tile Teller resolution in the senate.
1T has ar!sen3ir part from the growing
ssbulp' feeling on the stock market. but
4 more specifically from certain consplc-
nous facts showing the striking I'M
provement in the finances Of the rail-
roads due TO the last six months In
crease of traffic. A statement has been
made of the earnings OF Rock Island
covering the last nine morthg showing
J an increase In net earnings, over tho
! same period OF last year, amounting to
y VI 800. 900. The last six months are re-
4, ported at 81, 100000, which leaves n sur
plus OF 81. 100000 over operating e1-
p pensess and fixed charges, for disposal
at the discretion OF the management.
The Vanderbilt stocks have also shown
! q large advance. upon somewhat In
definite but apparently well founded
1goutsivings of new and favorable ar
engagements In connection with the New
YORK Central and Lake Shore systems.
1t is also stated that II Is Intended not
only to merge the West Shore organlza-
( tion with that OF the New York Central,
\ but also TO bring the Lake Shore nc.
\ tually into the New York Central corr
poration. Also 1t Is intimated' that the
& scheme under consideration involves o
union OF the Lake Shore and the New
YORK Central under the latter name,
with advantages to stockholders OF both
companies. Further, the deal is under.
stood to embrace the incorporation OF
y the Michigan Central in the Vanderbilt
2 system, by exchanging Its stock for 4
4 per cent debentures of the West Shore
railroad, at rate not yet stated. Also.
Z the election OF Mr.. Depew as q director
ilof the Ontario 4 Western Is construed
3 as implying deal between that COM
8 panys and New York Central; this, how
!, lever, lacks official confirmation. Bu,
4 these reports. coupled with the redrc-
ton In fixed charges through the recon-,
struction of the debt OF the New York
Central, has naturally caused large
: buying OF the Vanderbilt stocks and
: raised an expectation Of permanent
isincrease In the dividends OF the New
York Central. These facts, coming sim
Z ultaneously to the surface. are con-
strued as showing n process OF decided
recovery in the financial status OF rail-,
road properties at large. At the same
tfnte, the continued light constructions
y ofsnew lines Is viewed as q favorable
factor. For the last five years, the con-
( struction of new roads has averaged
barely ] 500 miles per year, or less than
( per cent, while the concurrent in
4 crease in population has probably been
not less than u per cent. Now that
business Is reviving in all parts OF the
country, this is factor which must
7. have avery important bearing upon the
4 earnings of the railroads; for there Is
not only more freight to be carried. but
relatively less road 10 provide for It,
= than five years ago. gi
The foregoing are the special causes
j OF the marked revival of the tone OF the
s stock market. In ADDITION, the i'm
s9provemert has received support from
- the general large increases OF current
earnings, and from the tendency to-
4 wards growing ease in the money mar
s ket. The extraordinary increase In de-
posts and the large gain in reserves
shown by the last, bank statement are
evidence of the growing accumulation
+ of funds seeking employment at this
centre. These bank figures, however,
Z only partially express the real extent Of
Z the plethora. 1t Is necessary to take
y into account also what we are lending
Z to Europe. In my advices OF last week.
reference was made to the large amount
4 to which New York Is under advances
Ito Europe. Those loans have since been
s Increased. and It appears doubtful
whether $50. 000, 900 would now cover the
y total. Other home centres have made
z like transactions. have direct knowi-
edge OF two loans OF s.. 0e0 900 each to
large German banks made by 4 Chicago
banking institution at 10 AZ per cent,
d and other like transactions are said 10
4 have been made at Chicago to an
amount ;approximating Si0.000.00O. Adj
.rances to European banks have also
& been made by Boston banks and capt.
< talists; to what extent have no>posl-
: tive knowledge. but estimates Osthe to-
tai range between $40, 100000 and So. 0O0,-
4 600. Putting these facts together, It
would appear that this country Is now,
lending TO Europe $50, 00o. 900 to $50. 000,-
5 600. This Is significant not only as
showing the extraordinary accunlula-
34tions of capital at our home financial
3 centres. but also as demonstrating that
( we have become full participants In the
credit operations between the worlds
financial centres, able to lend upon a
4 large scale as well as to borrow when
4 our convenience calls for It. The local
Z financial Institutions arc quite disposed
Z to encourage these operations. as the
! only means OF preventing glut of gold
which we do not need and arertinS q
Z still lower rate OF interest. Moreover,
1 this experience clearly shows the ad-
vantage Of remaining on gold basis.
E1t$enables this country TO loan to Eu-
s&rope $l00, 600. 900 OF morey. Mt higher rats
OF interest than are obtainabie on this
Z side. This could not be done IL our
money basis was not OF the same in
3$.r!nsic character as that OF England,
Germany. &C.; whereas. II we were on
z the 16 to ! free coinage basis. no nation
!, OF any Importance excepting China and
Mexico would take our money In direct
cash dealings on any terms whatever.
The revival OF the silver agitation In
/: congress. In connection with the resou-
Etion OF Senator Teller. has for It's pur-
4 pose making It imperative OIL the part
of the government TO recognize the
4 word Coin" contained In the United
Z States bonds. ns meaning either gold or
silver nc the money In which both prln-
&clpal and interest shall be payable. 1t
tjis not nj. all likely. however. that this
The Enemy Is Ours!