The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-04-18
SKIES BRIGHT AGAIN
Henry CIews Notes ReStora-
ton of Financial Serenity.
WEEK ONE OF RECOVERY
From the Effects of Squalls
of the Week Before,
WEEK ONE OF RECOVERY

New York, April 17.-Henry Clews says:
| Last weeks break in the industrial and
! transaction stocks had a wholesome eff
feet upon the stock market during last
week. 1t probed to the bottom what was
| known to be a weak spot and, in so doing
removed a good deal Of apprehension
which had held affairs in suspense and
was producing reactionary tendency
One of the consequences has been di-
version of attention from the more sen
sational industrials to the stabler securi-
ties. At the same time, it has been a
revelation Of the intrinsic strength Of the
general market. Such a shock was a Sc
we're test OF the position of the specula-
tive interest and fthe fact that the rail-
road list stood comparatively steady
under this sharp pressure is evidence. Of
soundness in the more legitimate
branches of speculation the more so as
the money market was at the same time
in an unusually sensitive position.
Certain other conditions were also cal
culated to help the break in the indus
trials IL producing a marked general fall
in prices. Several payments were then
impending, in connection with trust or
CARNATIONS and railroad deals as well as
the liquidation Of Spain's claim for $20,-
100000, which pointedly suggested the pos
sibility of a free calling-in Of stock ex-
change loans. Also, prices We're at a
relatively high range, and not only the
professional bears, but also bulls who had
recently realized. had a distant interest
Yet, in spite of al such influences, the
general list stood with remarkable steadi-
ness. there was little forced realizing
outside the weak specialties and. when
the sensation was exhausted. a quick re-
vivaI of confidence appeared and the
prices of railroad stocks have since
shown a steady rallying tendency. The
previous weeks market was one of liuui-
datiOn in getting out of debt, and the
environment was extremely pesimistic
This weeks movements. however have
obliterated al 1.-THE gloomy forebodings
and established a rapid and general re-
covery in prices and a more cheerful out
look on the part of both large and small
operators.
To some extent this recovery has also
been due to an improving tendency in the
money market This last bank statement
showed a better surplus of reserve than
had been anticipated money sent to the
country for April settlements is beginning
TO return and the loan market is drifting
towards a position of ease which may he
expected to continue for some months to
come There lies behind this factor. how
ever, a much more important influence
70 DIV CT .,
make permanent the higher range of val
ues than has been reached during the last
three months. We refer to the potency
of the now established conviction that
the average interest on capital has def
nitely reached a permanently lover level.
That has for some time been ANTICIPATED
as the ultimate result of a variety of
natural causes, But when the January
demand for investments appeared in such
unprecedented volume and investors
found they could not procure frst-cIass
securities yielding better than 3 per cent.
the conviction became general and fixed
that the anticipated reduction in the rate
of interest had actually arrived. The
notable rise in prices of stocks since the
opening of January and the persistent
maintenance Of the advance. with only
temporary reactions, IS neither more nor
less than an adjustment of prices to the
lower rate of interest. A new basis of
values has thus been created and. al
though reactions may arise from a va
riety Of causes, any permanent return to
the former level Of prices IS not to be re-
garded as among the probabilities of the
future.
This then is the position Of the market
IN prospect Of the ease in money and the |
generally healthy conditions which NAV
be expected TO prevail for the next few
months. The crop prospects are watched |
With much interest as bearing on the
course Of the market for the next four
months. As yet, however. the prohs- |
blliues as to the next harvest are too in
definite to have much effect on Wall
street 5 ofar as respects the winter
crop, the outlook, a THE moment. is |
somewhat unfavorable. one authority Of
som estanding having interpreted the gov
eminent April report as meaning q cron
Of about 500o00o0 bushels less than that of |
last year. THIS symptom is no more than
might be expected from The severe win
ter ana the cold and wet opening Of the
spring there is, however ample time for |