Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-04-21
A Diversion Of Attention to the
Stabler Glass OF Securities.
A NEW BASIS OF VALUES.
Essimssc That uni,ed states wheat
Crop VIII be so,0Oo.0oo Bushels
Less Than Last Year.

Special Correspondence.
New York. April 10. issa.--I.aat weeks
break in the Industrial and traction
stocks has had Wholesome cffcct
upon the stock market during the week
now closing. II probed TO the bottom
what was known to bel weak spot aud.
In 80 doing. has removed a good deal II
apprehension which had held AFFAIRS In
suspense and was producing n reaction
airy tendency one Of the consequences
has been a diversion OF attention from
the more sensational industriala 10 the
atnbier securities AZ the same time
II has been q revelation Of the Intrinsic
strength " the general market. huch
u shock was severe tcst 81 the posi-.
ton Of the speculative interest; and
the fact that the railroad llst stood
cotnparn lively steady under THIS sharp
pressure " evidence of NoundncsH In the
more legitimate branches OK Hpccula-
ton. the more 20 as the money market
was at the same time In an unusually
sensitive position.
Certain other conditions were also
calculated TO help tho brsak In the In
dustrials In producing u marked general
fall In prices. Several payments were
then impending. In connection with
trust organizations and rtilIcad deals.
as well aA the liquidation OF spain's
claim FOR SO. 100000. which polntedly
HugRcated the possibility OF q free call
ing in ~ stock exchange loans, Also.
prices were NJ relatively high range.
and not only the professional bears. but
also bulls who had recently realized.
had a distinct interest In fostering
general break of prices. Yet. In spite
Of all such influences. the general list
stood with remarkable ateaiinea-. there
was little forced realizing outside the
weak spccinltlcr. and. when the rensa.
ton was exhausted. % quick revival OF
confidence appeared and the prices of
railroad stocks have since shown
steady rnliying tendency, Last weeks
market was one % liquidation In get
ting out Of debt. and the environment
was extremely pcsslmisiic. This weeks
movements. however. have oollterpicd
all the gloomy forcbodlngH and cstab-
iishcd n rapid ana general recovery In
prices and n more cheerful outlook on
the part Of both large and small opcr-
atorr.
To some extent this recovery has also
been due TO an Improving tendency In
the money market. The iast bank state
ment showed n better surplus 81 reserve
than han been anticipated; money sent
TO the country for April settlements In
beginning TO return; and the loan mar.
ket II drifting towards a position Of
ease which may be expected 20 continue
1
behind this factor. however. a much
more important Influence tending TO
i give strength 10 stocks and 60 make
permanent the higher range Of values
| that has been reached during IN. last
three months, We refer TO the poterc
81 the now established conviction that
the average Interest ON capital has
definitely reached a permanently lower
| level. That has for some time been an
ticlpatcd a. the ultimate result OF n
variety OF natural causes. hut when
the January demand for Investments
appeared In such unprecedented volume
/ and Investors found thoy could not pro-
cure first class securities yielding bet
| ter than per cent, the conviction be-
came general and fixed that the anticl-
rated reduction In the rate Of interest
had actually arrived. The notable rise
/ In prices of stocks since the opening of
| January and tho persistent mhinten-
ance OF the advance. with only tenn
porary reactions. u neither more nor
/ less than nm adjustment Of prices To
| the lower rate of interest. A new basis
/ Of values has thus been created; ana.
although reactions may arise from a
variety 81 causes. any permanent re-
turn 10 the former lower level of prices
/ ~ not 10 be regarded ~ among the
probabilities Of the future.
This then II the position ~ the mar
kei in prospect ~ the easc ~ money
and the generally healthy conditions
which may be expected 10 prcnvil
for the next few months. The
crop prospects are watched with
much Interest NJ henring on the course
Of the market for the next four months.
A. yet, however, the probabilities mn to
the next harvest are too indefinite To
have much influence on Wall street
ao FAR ~ respects the winter wheat
CROP. the outlook. at tho moment. ~
Ia ant
~ some standing having Interpreted the
government April report - meaning n
| rrop Of about M. 600 600 bushels less than
that ~ last year. This symptom IN no
more than miEht he expected FROM the
severe winter ana tho cold and wet
opening ~ the -rfingi there - how
| ever annie time for Improvement In
tho weather which would materially
Increase tho output. especially ne the
ncrenga II estimated 10 exceed that OF
last year by about ~ per cont besides.
there Is every probability that In
the event ~ probable decrease In the
winter.sown crop. the area ~ spring
however, making comparison with "a
year OF unprecedented large wheat
crop: 50 that. even should the OUTPUT
show decrease compared with 1895
Il would probably SIN exceed that of
any year previous 10 1885, A. conditions
I NOW NtNNNs iNNfHlNfff iNlfft " iANf PROS
poets ~ another agricultural year ~
great abundance. with continued large
earnings for the railroads, large exports
OF food products ana the continuance OF
an Important excess NJ exports, except
80 far M II may possibly be limited by
an Increase Of imports consequent upon
the growing prosperity 81 the country.
t'nder these renernl conditions II IL
not easy To nnd any bear elements
In the Wall street situation as Il now
stands Rather. the position favors
the prospect ~ y Htrorr market and n
hulilsh tendency IN speculation until the
fall months. neyOnd that period. how
ever, there are monetary possibilities
which viii need 90 be- watched. There
are very evident symptoms that the
supply 81 circulation II falling short "
the requirements or our largely In
creased business. " true. there has
boon mn Increase ~ the money In ac-
tunl circulation. the amount havlng
risen from ~ lis O0nOo0 on April I. 1895
TO 81. n27 500 900 on the nrst o. this month
"a gain NJ Si7i 10000; hut ~ this In.
crease Sii2,5O0 900 has consisted OF gold
which ~ almost entirely unaVail-
able for active use In trade; ~
that We may say tho Increase In the
forms ~ money available for retail
transactions II only about $50 100000
within the last twelve months. This
Increase In tho active circulation, out