Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-06-23
Improvement Due to Buying That
Followed a Drop in Prices,
IT CALLS FOR MODERATION.


Special Correspondence
New York. June n. is9a-During the
past week there has been some recovery
I'm the tone OF business ON the stock
Exchange. The Improvement appears
Co have boon mainly due 90 the cncour-
agcmcnt TO buying consequent on tho
previous drop In prices. the trunsne-
tlons. however. have not been large
and the second half OF the week was
marked 10y u disposition 10 realize on
the few days advances. with some COM
aeguont yielding lu prices. There nrc
plenty or strong believers In the ln-
trinslc strength Of the market, but they
are cautious against unloading und0r
certain circumstances In the situation
which are OF an unusual nature and IN
nuencc of which cannot be exactly
measured.
Undoubtedly the position IL one that
calls Tor moderation ana clrcumspeC-
ton. II u true that the general CON
ditions " national prosperity which
gave rise 10 the grvat advance early
IN the year stlll remain In their fun
force and the impression they produced
sun has Us influence. But. ~ specu-
lutluu. 10 is impossible Go make tho
maximum range OF prices perpetual.
no matter how much conditions may
seem In fovori and Il may easily be-
found that, In the present position. "a
further decline In prices will br needed
20 order Co. restore really active buy
ing ana fully rccupcrato the bull
spirit.
Al an earlier stage " the campaign.
u was mainly a question OF how much
the value N securities had been on-
hhncyd hy the great burst OF national
prosperity, That question was aL-
awurcd by
AN UNQUALIFIED RISE
In prices: and now the question has
come 10 below far values should b.
affected by the important changes In
the supply Of securities on the market
10 lH doubtful whether sufficient nttrn-
ilon has been given 20 the ,Xtcnt 90
which securities have been returned
from Europe Within late months. one
OF tue morning papers has made care
ful Inquiries among seven principal ar.
hltrnge houses, 40 90 the extent of that
movement from the beginning of 1895
10 the end of last month The lowest
estimate uf the market value Of the
stocks ana bonds returned within thlt
period, less tho amount exported. was
NNN'NNH tAAAN NNNN ANHN|NN NNNN
uvl'u0 tnob, the average uf the cHtl-
mates showing a net rcnuN 10 tho
amount of about $500 000. 900. This
movement I think. Will crenta s1fna
surprise by H. extent. ana though only
nn estimate, yet the figures come from
more VINO have done nearly an tho
transactions and they therefore should
approach accuracy
IL lH certainly a factor on some rcnI
Importance that securities. valued az
their market price. ut $500 O00 900 have
come upon the market within the last
seventeen months and the Importance
~ the fact becomes all tho greater
whom IL is considered that tho govern
mcnt mas within the same time placed
J2ooOoQOoo OF ITS BONDS
on the market. mgitlng % total now sup.
ply or AIt0VQ1OVu. Tho extraordinary
plethora uf money IN the banks has
facilitated The carrying OF these secure
uoHi but 10 cannot bD assumed that
they have yet been dlgcstrd and found
"a resting place uH permanent Invest
ments
Nor ls this tho only consideration.
The rriuru OF these securities from
abroad hlH gone Ear towards llluIdat-
iuE thp large creditor balance that has
arisen from the great excess uf exc
ports over Imports that occurred dur
.
! plus has been perhaps tho most Inn
portant element in the rise OF secure
! Ties that occurred during the nrst
quarter NJ 1882 ami n becomes an Inn
poriout questun-how Tar that rise In
| values can be- considered na having
/ been ncutrallzcd by the almost come
| plcte removal OF the stimulus that Ho
| largely contributed 10 the advance ?
| Though | do not pretend TO measure
! tho exact value or this factor among
| the many that are rcHhaplng the mar
| ltet yet ! cannot but regard Ii az p1s-
| acaslng considerable practical import
] unco- much more indeed than has
] hitherto been attributed 10 II.
II is worth considering how far this
! foreign movement lu securities has
| Onset the creditor trade balance. The
/ value ~ the imports and exports. In
! Guiding specie. Tor the seventeen
! months from January !, 1885, TO May
! "a, 1893. was as follows.
Il