Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-05-19

Special to the Register
NEW YORK, May 1S.| am disposed
to believe that the break of last week
VIII prove only temporary and be fol-
lowed by quick return to higher
prices, but not the highest panic
level. We are now able to understand
the chief cause of the persistent and
extravagant rise of prices. The pro-
tracted extraordinary strength of the
market was not due to a mere over
valuation of factors intrinsic to the
improving traffic of the railroads. AS
matter of fact, the prevailing feel
ing did no doubt overvalue that factor;
but we now see what WAS very imper-
fectly comprehended before,-the i'm
mense magnitude of the operations of
milliOnaireS who were secretly buying
controlling interests in four or five
great railroads without regard to the
intrinsic value of the properties. Had
this been known to be in process, it
would have alarmed the market and
produced general realizing; that enor-
nous buying and the continuous rising,
however, was construed as within the
ordinary lines of speculation and there
fore as really expressing the speculative
strength of the situation apart from
any special outside stimulus. The
Northern Pacific corner" has revealed
the true source of the great rise in the
stocks in which there had been big
deals" and suddenly the Street awoke
to the fact that it had been misled into
extravagant buying by unsupported and
dangerous ventures, and had become
involved in an imitation of alarming
magnitude. This undeceiving of ex-
travagant expectations has alarmed the
whole speculative community and driv-
en- them into realizing, with the result
of the fall in prices which the past
week witnessed; and the lesson OF mod
Grafton which recent evenYs have taught
is likely to be remembered for some
time to come and chasten the tone OF
speculation.
che situation, however, has another
side that merits much consideration.
The crisis Of the danger is passed; we
have seen the worst, and it is felt to be
great relief that the consequences
have not been more serious. Not one
stock exchange house has suspended;
which implies that operators have, from
their large profits been we'll able to take
care of their contracts. This IS, per-
haps. one of the most gratifying expert
ences in the history of Wall street spec
ulations. The perils of the Northern
Paclfic corner" to London seem to have
been almost equal to those that threat
ened New York. The joint intervention
of the Rothscnllds and Mr.. Morgan ap-
pears, however, to have averted the dan
ger and the London market has again
recovered tone.
During the past week there has been
a pretty thorough wedding out of en-
feebled operators; the bargain hunters
have taken off considerable floating
stock into their strong boxes; and the
market is thus working into sounder
position. While there has no doubt
| been a considerable clearing out of the
weaker elements, yet there remains
an important class of operators of large
means and who have confidence in the
staying qualities of the market and look
for the maintenance of activity through
the summer months. They regard the
underlying conditions as essentially
strong; and, while conceding the tran
silent effects of the past shock and in
no disposition to prematurely force up
.,
the railroad deals as destined to pro-
duce permanent elevation in the value
of that class of securities; thus the very
causes that have temporarily over
thrown the market are looked to for a
widespread consolidation of our invest
! ment interests.
Another fact not to be left out of cal
culations is that the securities of the
Low oct 4
been submitted to a severe marked test
very early in their existence, and have
evidenced recuperative powers that
ought TO allay any apprehension.
Fortunately, the shock in Wall street
has scarcely had a momentary effect
upon industrial and commercial inter-
ests. The harvest prospects are en-
couraging, and the South and West still
maintain their extraordinary prosper
ity Credit operations are in a sound
and healthy condition. The money mar
ket, though subject to a healthy de-
mand, is backed by unprecedented
loanable resources. For the moment.
gold is going to Europe. not however
from any adverse commercial move
ment, but rather on account of exchange
operations tending to place American
balances at the service of foreign mar
kets. The April report of the Bureau
of Statistics shows a continued increase
in the exports, and the total foreign
trade Of the fiscal year 10000 is ex-
peeted to show an excess of exports
over imports amounting to 500, 900. 00e
the largest creditor balance in the
history OF our foreign commerce
HENRY CLEWS.