Omaha daily bee., 1899-04-18
REAL WORTH STANDS TEST
PsmmIsiic Period Relieves ihs N,tssl Of
Fictitious Values
RECOVERY ACKNOWLEDGEMENTS
mats E,pectcd ~ uotd ibr irrsf
ttard tntii the Tait N"Hths-S'ta
Element with spstp tmpfutss
Munob situHtt"p.

SEW YORK. NpuI o. Henry r|.st
head " ibe banking house u' ii.urf t'.Ha
& cu. writes ba follows 0' ihU situation ln
Wall street
SEW YuWk AHrI ia Tact Ht.Ea II.Hk
iu the industrial and traction aIH.ta HaH hHl
20 wholesome effect upon ih" H.u.h WH.h.'
during ihr ur,k uuN closing Or pf.h.I ''
the bottom what V1H known '' hH u'fa
spot and iu s0 doing h1H removed uF
deal Of apprehension which bbI held Hut.fH
iu suspense and was pfulu..us a rrH.'I.NffH
diversion ~ attention from lhr more sFH
satiuunl iuluFtrIuls iU The n'bhIrt Ht.HfI'I.
At the same time it has been "a revelation
OF the lntriuFi" strength ~ ihr general mHf.
kct such shock was severe iHHi OF ih.
position " the speculative Interest ana 'hr
fact that The railroad list stood ,uuphft
tlvcly steady under this sharp pressure lH r,.
denCo of sOuuducua iu the more legitimate
branches ut speculation. the more ru aH fhr
money market was 40 the same time BOO uu
unusually Ecnsitiyo position
Certain other conditions We're also ubl.U.
lated 90 help tho break in the iuduatriAis hoo
producing marked general TALL iu prices
Several payments were then impending 900
connection with trust organizations Iui rail-.
road deals as well os the liquidation M
Spain's claim for $50 GOO 600. which puiufrllY
suggested the possibility of a fr,c DallluE 'n
OF stock exchange loans Also prices we're
at a relatively high range nnd not only me
professional bears. but also bulls who hNl
recently realized had q diHtluuI iniUf,Ht In
fostering general break In prices. Vet. lu
spite OF all such influences. the general llH'
stood with remarkable steAdiuUaH, there Was
little forced realizing outside the weak Fpr.
cialtics and, when the ECusaiiuu was rN.
haustcd, quick revival uf confidence APP
pcarcd and the prices of railroad stocks
have since shown n steady rallyiug tendency
4 Vtr..t II..H# HI..#. Do
getting out OF debt and the environment
was extremely pcssimlstlc. This weeks
movements. however. have oblltcrniud all
the gloomy forobodnEs aud established a
rapid and general recovery IN prices ana a
more cheerful outlook ON the part of both
large and small operators.
Money Grows FIrmrr.
To some extent this recovery has also boon
due to an improving tendency In the money
market The last bank statement showed a
better surplus OF reserve than had been an
ticipated money sent to the country Tor
April settlements s beginning to return, ana
the loan market is drifting toward a position
of ease which may be expected To continue
for some months to come There lies behind
this factor, however. u much more important
influence tending to give strength to stocks
and to make permanent the higher range ot
values that has been reached during the last
three months We refer to the potency Of
the now established conviction that the ay-
erage interest on capital has definitely
reached permanently lower level That has
for some time been anticipated us the uli-
mate result OF a variety of natural causes
But when the January demand for invest
ments appeared In such unprecedented vol
ume and investors found they could not
procure rst-class securities yielding better
than 3 per cent. the conviction became gen
eral 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 main
tenance of the advance, with only tcmpor-
ary reactions, is neither more nor less than
an adjustment OF prices TO the lower rate OF
interest. new basis of values has thus been
created and, although reactions may arise
from variety OF causes, any permanent re-
turn to the former lower level OF prices is
not to be regarded as among the probabili-
ties of the future.
l,a.l. n..aI l. L..