Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-14
THE CLEWS LETTER.
Review of the Wall Street week-Eyery.
thing Points to a Recovery-The Situa-
ton Improving-Banks Rein
forcing Their Reserves

ESPECIAL TELEGRAM TO THE DIsPArcrI
NEW YORK, Dec. 13.-Henry Clews 8
Co., in their weekly financial circular. saw
The past weeks course of affairs in Wall
street shows no very striking change from tina,
of the week previous. What change has
occurred. however, has been distinctly IN the
direction OF recovery. At the Stock Exchange
although the transactions have been compare.
lively liberal in amount, yet they have been
largely confined to the room traders" the
'outsiee" element doing very little on specu-
lative account, though still buying for invest
ment. Prices of stocks have been almost en-
tirely at the mercy of professional operators:
but with this difference as compared with the
previous week-that a solid bottom is generally
admitted to have been reached, and conse-
quently the "bears," instead of being such
continuously, are becoming alternately "bull'
and bear" The elements for a sustained
"bulP' movement for even a moderate rise do
not seem to be at presententirely matured; but
the market is more visibly working in that
direction, notably SO yesterday, when prices
generally advanced and much more hopeful
feeling was developed.
In banking circles there has been a percepti.
Bile recovery in tone, and the ability of the
banks to meet the demands of borrowers is ex-
tending; but the embarrassments and failures
among commercial firms is felt to justify the
continuance of strict caution and discrim1pa-
ton. Towards mercantile borrowers the banks
seem disposed to extend the most liberal con-
s1deration consistent with prudence; and the
fact that failures are diminishing in frequency
tends to strengthen that disposition. In point
of fact, the failures that have occurred are
much less serious than might have been ex-
pected from the demdrsliZed state of affairs,
when it is considered that December IS the
month in which there is always heavy crop of
embarrassments and suspensions. The fact
strengthens the belief very generally enter
c0mmarcIal hOusAS Qc n rr11o
in an exceptionally sound condition; and it is
likely that, at an early day, the banks may so
far appreciate this view as to extend their dis
counts and thereby put an effective stay upon
distrust as to mercantile and industrial credits.
SO far as confidence may be dependent upon
the local supply of money, we may congratu-
late ourselves upon an Improvement in the sit
uatiOn. 1t is true that little present Importance
is attached to the proposals in Congress and
contemplated by the Administration for a
future increase in the supply Of currency; first,
because such measures could net give the i'm
mediate relief which is the crying want, and,
next, because Wall Street is more and more in.
Ginning to the view that the main thing needed
is less more money" than freer facilities to
use what we have and remedy OF the
crippling legal restraints upon banking. The
relief Immediately wanted is larger supply of
lawful money in the reserves of the New York
banks; and that is close at hand. The Secre-
tary of the Treasury has, during the week, paid
out about 9S00. COO in the purchase of per
cents, Sc. 5O0.0O0 of which has gone direct into
tne local banks; and the condition OF the for
eign exchanges indicates liberal transfer Of
gold from Great Britain and the Continent
to this city. Already amounts aggre-
eating about s4,OOO0O0 have either
been slipped or engaged for shipment
and the probability Is that considerable further
Sums may be sent. The Bank of England has
expressed its willingness to part with 81 600 COO
gold Tor the United States, which is additional
to the S4,000000 referred to. The London
Times strongly urges upon the Bank of France
and the Imperial Bank of Germany the pro-
priety OF their sending liberal amounts Of gold
10 the United States, as means of curing the
prevailing decentralization; which seems to be
regarded as matter seriously affecting Euro
pean finances, and therefore deserving the at
tention of the controlling banks. The sugges-
tion OF the Times probably came from an in.
fuential source and may possibly have some
Practical significance. The Bank of England
Is evidently ready to make some sacrifice for
New 7 ork, OF would probably have advanced
its rate Of discount on Thursday, In view of the
condition of exchange at this point; and it
carries favorable inference as to the condi-
ton OF the bank and of the London market
that such disposition should exist in that
quarter.
The relations between our banks and the 10.
terror are not easily explainable. One day the
rates OF exchange at Chicago or St Louis
would leave handsome profit on sending cur
rency to New York, and the next 1t would be