New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-09-17
THE SITUATION.

Two DAYS have passed since Secretary VIM
dom announced the measures he was able 10
take for the relief of the money market. AL
though no bonds have yet been taken, and the
practical result of his offer Will not be known
until after to-day, the effect already has been
highly beneficial. Rates have declined ma
terially; commercial loans in large amounts
were effected yesterday at per cent; and
while borrowers with questionable collateral
still have difficulty. there is a marked change
for the better. Few have believed at any
time that there was real danger of anything
that could be called panic this week, but the
fear has been that few important INSTITUTIONS
or industrial undertakings might become en-
tangled anu embarrassed by the scarcity OF
available funds. The course of MIR. WINDOW
has given assurance that ample relniorcementS
are close at hand, and those who have reserves
available, instead of locking their doors
AGAINST all applications. have felt free to make
more liberal advances.
1t is the prevailing belief in Wall Street
that enough bonds will be offered to the Secre-
tary at prices which he can fairly pay to re-
move the probability of further pressure until
money begins to come back from the West
and South. Just here it is proper to notice
that the Secretary has been ignOrantly crit
icised for that feature of his course which was
most essential to its success. Had he simply
offered to buy bonds without explanation the
chances are strong that he would not have So
cured them. Yet men fOolishly complain be-
cause he added the information showing that
he would not be able to buy any more bonds
for a considerable time. excepting as the re-
dcmption of the fo,Irand-a-half per cents du"
next wear may he anticipated. IT was exactly
this statement of facts which gave his pan It's
only considerable chance Of success Holders
of bonds were not slow to see that, with Gov
ernment no longer n purchaser for year or
more to come, the prices OF four per cents
were likely to decline, 50 that they coud no.
expect within that time if ever, to get better
prce for these bonds. More than one saga
cious holder Yesterday expressed the belief that
he could sell at less than current quotations,
with great certainty OF getting back his bonds
at a profit within a few months through p''r-
chases in tho open market IN this belief II
ia likely that blocks may be offered which the
Secretary might otherwise haze been unable
to purchase.
The Treasury is going to he in different
| position after the Mckinley bill has been
passcd Its revenues will he materially re-
duced first, BY the fact that anticiratory i'm
pOrtations have crowded the markets for many
kinds of goods; second, by the partial eNclu-
sion of many articles through higher duties,
and third. by the removal Of duties on sugar
and some other products. With the income
thus diminished by many millions. the Treas
ury has also to meet the largely increased
disbursements required by the Dependent rem
sions and other measures. II will have only "a
scanty surplus, if any, for year or two I"
! come, for the purchase Of bonds or any oih"r
use. The redemption of III" four-and-a-hal
nor cents vet outstanding will take what money
it has to spare, and the holders Of four per
cents will meanwhile see their strict value IL
| an investment gradually decrease as the time
of their redemption draws nearer.
| With the success which il now an;icinat"d
Secretary Window will have given to the ii>i-
ness world all the help he could, and more
than there was real right 10 ask. II Will then
bo the mart of bankers and business men I"
see that their own operations do not inv"'ve
a renewal of the difficulty. In some drcc-
tons there ought to be liquidation without
unnecessary delay, so that the avalahl" re-
sources of the country may be more fdiy e.
gagged in sustaining those productive industries
and legitimate trades the growth OF which l.
so marvellous and 50 encouraging.