The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-12-18

NEW YORK, Dec. 16, = The stock
market has witnessed some severe de-.
clnes during the past week. Continued
s.ringency in money forced yielding at
the weakest point, which as expected
proved to be the industrials. Weak
speculative holders sold from necessity;
others, tired out with long waiting for
an up tura to let them out, sold from
sheer disgust, The result has been
very extensive liquidation, materially
accelerated by bear operations, which
as stocks gradually pass from weak
into stronger hands leaves the market
in much improved condition. Unfav-
orabIe rumors were freely circulated
concerning certain interestss but these
were not a surprise, and any disaster
in those quarters, being amply dis
counted, would not be OF serious conse-
ouence to the market in general. When
the present squall has reached its cli-
max we may look for gradual improves
ment.
While tae present shake-up may be
very dIsagreeable and expensive for the
,mprudent, 1t will certainly prove bene-
fetal In the long run. Expansion Of all
sorts has been going on for months
at pace which needed some sort of
test or check, and this has been applied
in the most natural method, that Of
tight money. Some contraction is now
in order; weak spots are coming to
the surface; unhealthy speculation is
receiving a check, and when values
have had tune to adjust themselves to
the new conditions we may reasonably
look for a renewal Of the upward move
ment.
Al the moment, however, the outlook
for buoyant prices is very doubtful, the
entire market being controlled by mon
etary conditions. Trade activity Is
Worldwide, and high rates prevail IN
all the leading money markets. The
great banks Of Europe, those in Lon
don. Paris and Berlin. are ali protect
ing their gold reserves by abnormally
high rates OF discount, indicating an
unusual strain. British reverses in the
Transyaal, and the cutting OF Of that
source Of gold supply, have materially
added to the tension In London, and
we are. now on the verge Of shipping
gold to that point instead of importing
il az is usual at this season. This ex-
posture to a foreign demand on our gold
sunp,v comes at a time when our own
resources are fully taxed. Activity In
tho retail trades is absorbing an enor-
nous amount Of currency which in
spita Of recent increase is insufficient
for present requirements. Many Of the
trusts are also larger borrowers than
was expected at their inception; both
mercantile and manufacturing interests
require more accommodation than
usual No undue expansion Of credits
can be observed, and this great demand
for money is simply the result Of phe-
nomenal trade and industrial activity.
New York banks are taking care oil
regular customers at reasonable rates
and 6 per cent. is the common rate 10
good mercantile borrowers; but the
speculntor must pay high and In many
cases prohibltlve rates, especially wneh
the new In6ustrials are ohered as c0A-
laeral, &, +ha
futnrs are not promising. Bank re-
serves are low and building them up
under present conditions will be slow
work, except through the unweleons.e
process OF retrenchment. Saturday
hank statement should show sharp
contraction of loans. Preparations 10.
January disbursements, amounting "
about Sl5O,OOO,OOO, will cause temporary
arrangement, but as conslueraDlS u
this sum will be reinvested u VIII az
ford some relief. Meanwhile tne tteas-
ury continues to absorb funds at an
uncomfortable rate; offers to BUY
bonds or anticipate interest are only
partially effective and no signs OF cas-
Ter conditions are in sight In the tor-
eign markets. II Is quite evident, there-
fore, that we are to see firm rates !or
the remainder of this month; ana THIS
OF course Is adverse to a bull stoCk
market. on the other hand 1t should
be remembered that general conditions
are exceptionally favorable; prices nave
undergone q considerable decllne,
pecially the lndustrIals; liquidation mas
been extensive; earnings net and gross
Of tine great corporations are large
enough to warrant belief In better
market after a while, especially rs
there is every reason to expect con-
tInuance Of present prosperity for some
time to come. It remains to be seen
how long monetary conditions VIII
counteract these Influences. The next
few days may witness some Interesting
developments. The bears have gained
considerable In strength and audaclty
by recent successes, and VIII no doubt
push their campaign farther II possible
4 decisive British victory In the Trans
vaal would have n stimulating enect
here lnasmuch as II would diminish
the prospects Of monetary difficulties
in London
The money centers all over the world
are disturbed at the present time. me
Bank OF EnglRnd's rate OF discount Is
now Q per cent, which is the highest
FOR over ten years, and the rate In Der.
lin is per cent The management OF
the Rank of France Is the most despotlc
OF the worlds great fnacial instltu,
lions and they hold on to their goiu
with an Iron grasp, hence ltR rats SCI
dom changes. The fact that they nave
now been compelled 10 advance Il from
per cent. to 3h per cent. Cbeing the
first time In over year and only three
times within ten years) Is an evidence
" the gravity Of the situation, TINS
Institution glided through the Barring
panic period without making change
In It's rate. Notwithstanding that tho
shock was seriously felt all over the
world. thus showing what a stalwart
concern the Bank OF France ls The
present change In It's rate, therefore, is
'rbo S",,,b Asricop ynr IL nrohnbly