The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-05-02
Special Correspondence.

LNDTH#N ~ 49, -H|-.. I#
NEW YORK. April so-The FIRST
week OF war has produced no material
Change OF affairs in Wall street. yTha
most notable feature is the contraction
of operations on the stock exchange.
Investment, transactions are almost
suspended; the outside" element In
speculation has virtually disappeared;
and business Is almost entirely confined
TO quick in-and out operations; the re-
suit being that dealings have contract
ed. to about one-third their normal vol
nme On the whole, prices have been
steady TO firm. the chief influence caus.
ing fluctuations being the varying as
poets OF naval movements nnd OF other
Indications as 10 the drift of hostlllties.
Evidently, until the struggle has
ceased, we may expect the stock mar
ket to keep even pace with the for
tunes OF war, while ordinary Influences
will. be held largely In allegiance. The
news OF Admiral SIMPSONS successful
reconnaissance In force or Matanzas,
had a stimulating effect on Thursdays
markets as indicating the probability
OF an early landing In Cuba. and show
ing the efficiency and good working
condition OF our fleet. Wall street Is
likely to serve as q good barometer OF
the prospects of war; and the luctua-
lions Of mood that will attend the vary
ing fortunes OF the struggle will afford
q good opportunities for brief speculative
turns in the market. from which an In
! crease in operations on the exchange
may be expected.
Naturally, under existing conditions,
attention is being attracted to the
money market. The presence here Of the
secretary Of the treasury has suggested
the probable early introduction OF a
loan on the market. Although there Is
no probability OF any large amount OF
money being Immediately needed by the
government, yet the secretary Is evil
IDENTIFY impressed with the ~desirableness
OF ample appropriations being made as
early as possible. Between now and
August Is usuallr. a period OF ease In
the loan market. Three to our months
hence, however, money will be wanted
for the interior In large amounts; and
important treasury negotiations COM
ing concurrently With that movement
might cause a conflict between the two
currents of demand detrimental to each. |
For that reason, the banks are In ac-
cord with Secretary Gage as to the i'm
portance OF affecting the negotiations
of the new loans with the least possible
delay, This is among the factors OF the
future already discounted. The banks
are putting themselves In q position for
contracting for large amounts OF the
new bonds, This Is having some influ-
-. - - H. . 81 -
time loans; but l see no reason to ap-
prehend that such effects Will be at all
s serious In their bearings on the gen
eral business OF the country. Within
the last ten weeks, the loans and dis
counts of the local banks have been re-
duced Sol, 900. 900; which shows how
much the banks have already done in
anticipation of the special financial de-
mands that hive now arisen. It Is not
to be concluded. however, that this COIL
traction of credit has fallen principally
upon commercial borrowers, for as I
matter OF fact a large portion. OF the
liquidation has arisen from the settle
ment OF various syndicate operations
to which the banks have made vers
arge advances. / have reason TO believe
that the banks have entire confidence.
in the financial situation. and are pre-
pared to- give all consideration to TIE
want o. their customers.
The absorption of money by the gov
eminent In the immediate future can
only DO through a war loan. in some
shape TO be designated hereinafter by
Congress, and money can be made tight
only temporarily In connection there
with. that is 10 say during the period
taFra1.,tral for flro v,ipC t. In n MI no,yfpp
1t over to the government repositories.
The governments need OF money Will
be such as to cause 1t 10 be paid ont
almost as fast as received for supplies
for the army and navy and for the pay
ment of salaries OF officers and men.
Besides, a good deal OF the money
already In the treasury will also be dis
bursed, so that as q matter of fact In
stead of money being taken out Of cir
culation II will be increased. During
the war government securities are likely
to be materially increased, but rail-
road securities will no. be. There Will
be no time. however, that q government
bond will go below the basis OF 81. per
cent interest. in my opinion, even In
the event OF 4 naval reverse. which,
though. possible, Is not likely. The use
OF money for business purpose will be
curtailed more or less during the war,
as no new enterprises will be entered
Into. Business. therefore. for some 1T
tie time, will be apt 20 settle down to 4
stereotyped condition conducted on con-
n sentative lines. The demand for money
will diminish instead OF increase for
some time to come. It is only when
people undertake big schemes that
money is in demand in large blocks,
and not when people contract their op-
eratlons, The war win be entirely an
external one-not internal. II Will not
stop railroads from running nor mills
from manufacturing. Our $4,000. 900 OF
people will have to be clothed and fed,
and that alone insures legitimate bust
ness dealings all over the country. Our
cotton will be exported, and so will
oil. other OF our products that have a
foreign market. In neutral ships assign
cd over to neutral owners. thereby &C.
curing the property from risk OF seizure
and confscation by the enemy.
Moneyed institutions would be unwise
In contracting time lonns: rs such n
.@ policy would tend to make money tight;
md TINT might too easily be used, as an
argument In Congress that there Is
not money enough. IN which case the
tendency would be for Congress TO leg
islate for an Increase In sreeuback IS.
sues in place of a bond Issue. Should
this be done II would be n very serious
matter.
War with Spain should be prosecuted
with vlgor TO bring It to a speedy ter-
minatlon. For q nation like this 10
fght'a feeble one like Spain will bring
no credit unless It Is done quickly. as
the Germans whipped France In their