Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1899-12-24
VIEWS OF HENRY CLEWS.
Special to the Register.

Special to the Register.
NEW YORK, December 3.-Wall Street
has received a severe shock during the past
week, the direct consequence OF an over
production of industrials and tight money.
1t was a surprise chiefly because of the
time of occurrence. A collapse of the spec
ulation in industrials has long been ex-
pected; but comparatively few people
shared with me in the often-spoken belief,
during the past six months, that it could
happen while the country was on the high
road to prosperity.
1t is hardly necessary to remind our Gus
toners of the causes of this break. For
two years, and especially in 1859, we have
been creating many new corporations with
enormous amounts of securities of untest-
ed merit n containing a dangerous
amount of water. The fact that many of
these new creations were merely consoli-
dated affairs, and that great prosperity
was insuring extraordinary profits could
not conceal the dangerous extent to Which
they were inflated, an extent which in or
binary periods would have brought an ear
lier and much more severe collapse. The
financing Of these great combinations and
the floating of their securities necessarily
locked up large sums OF money, especially
as the public did not absorb them so freely
as expected, and therein is the safety in
the present situation. So long as money
rates continued easy and business good 1t
was comparatively plain sailing! and. had
these conditions continued, it is quite like
ly that we would have soon been precipi-
tated into a state of wild bullish specula-
ton, oilowed by a mueh worse collapse
tina witnessed last week. BY a singular
combination of good and bad conditions a
very wholesome check has been applied
to this speculative tendency; and there is
little prospect OF seeing it enewed upon
the former scale.
AS stated in our previous advices tight
money was the instrument by which these
speoulations were held in check. The high
er rates for money. induced by the activ-
ity of all branches of trade and industry,
could only be regarded with satisfaction;
and it is worth while emphasizing the fact
thai good mercantile borrowers have found
no difficulty whatever in securing the ac-
comprodation they needed on a car per cent
basis. 1t was the speculative borrowers,
| particularly those carrying inflated indus
trials, that met with Determinations; and
the day of reckoning was simply FASTENED
by the heavy absorption of funds by the
treasury as well as the efforts of the great
banks of Europe TO replenish their gold re-
serves. Secretary Gage made strenuous eff
forts TO counterfeit the effects of the treas
ury in the money market, but they have
only been partially successful. Gold is be-
ginning 10 so outward more freely, prob
| ably about S,0o,Go leaving this week, but
this need cause no special alarm. We have
a plentiful supply of gold here and the
! worlds output this year Will in al prob
ability be larger than last year in spite of
the temporary stoppage of Transvaal pro-
! duction. All that We send 10 London will
simply go where it IS most needed and do
the most good.
A close watch should be given the foreign
~situationA There are evidences of strain in
London and ON the continent which might
temporarily add to the monetary difficult
ties here. Another factor in the market.
which is important if true. is the rumor
that one or two strong cliques are strug-
Cling for control of certain properties
| which have been prominent in speculation.
When giants are at war Il is best for the
average operator TO remain a spectator in
the properties involved. AT his writing
the market is full Of unfavorable rumors,
many of which rave no foundation. Dur
ing the coming week further stringency In
money would cause no surprise. owing to
dividend preparations. but after we fairly
get into the month Of January the fnan-