Telegram-herald., 1890-12-09
A SECOND PHAss
% s.- ss.-.s.., sss4.a--. s.s - 49,

% xA@ Efa zasi&t sttazKlza. Ba2 80 ke@r
$50 ~ sRer.A~sa sagthisx ssEssss.
S3~ fesz. Dee. e.-Ns zxs now tae-
inx seeond phass ef tks nn2aeAzi
srisia Although the staatoa org
natsd fIom speculative op<EsE-ons eon-
nsctsa sta specifically nnancs a .ntsF-
sstz. snt Allaoag0 tie reaction Ia those
Interests mzy be considered as having
p4zsea "a elimination. tnose dsksnge-
meats are nos symp4thet.c.lly sKtsad-
lng . the iBdaslfal AID eom msgc-ai
branches Il baslness
this danger has oeen. for obvloas
reasons. apPFeheDced N0t fFos &ny
supposed extensive unsoundasss Ia ths
gensFai trade of ghe coanlry. fer. on
tue eontFary both in the Industrial snd
tne mercantile branches, baaness has
been believed 70 be Ia a generally
healthy coalition. Bat trade cannot
long endure such = sudden financial
STRAIN As has happened without suffer
ing aud the prevailing dislrust and
monetary stnngeney have produced a
serious euTt4 ilnlent Of bank secemm0-
ton 10 commercial houses. Under such
circumstances the discrimination OF
lenders 5 directed most sharply against
those most stneeding help, and hence a
certain exteat Of failures becomes m
eyltable. The recent tarin legislation
has Incidentally put not feH manu-
factureFs and merchants INTO 4 position
OF exposure. Ia anticipation OF higher
duties causing higher prices, a consider
able amount OF capital has been tried
up IN antleipAtory purchases or raw
materials or IN an extra production or
importation OF goods, whilst some firms
have been embarrassed or driven into
liquidation by the prohibition of inn
ports. In all such cases the curtailment
OF discounts has operated inluriously.
Applications for the renewal of paper
issued IN such operations are met with
hesitation by the banks, and when em-
hsrrassment results the prevailing eau
ton and dIstrust Is intensified.
The failures that have actually oc-
CURED from these and other causes do
not amount To any alarming aggregate
indeed, the total ls IN a sense encOur-
agingly small; but they inevitably add
10 the senatveness OF the loan market
and indirectly affect securities. The
banks. however, seem disposed TO show
as considerate attitude under the cir
cumstances. They regard the CONNER
cial situation AT large as a sound one
and as affording no warrant for an IN
discriminate distrust. In view OF the
growing urgency of the demand for
discounts, some of the largest and most
conservative institutions have shown
their determination TO stand by their
customers by taking out considerable
amounts of clearing house certificates,
the issues of which have been increased
Up to about $l2, 900, ,0o0-which is one
half the maximum amount issued IN
1884. so long rs the banks MAINTAIN
this bearing, there can be little room
| for apprehension of serious trouble
among commercial houses. 1t is more
over to be considered that a large
amount of settlements always mature
at the close of the year and that De-
cember is therefore ordinarily above
all others the month for mercantile en-
barrassments; and, for that reason
alone, it would not be surprising should
further cases of weakness among COM
mercial houses appear. Still, taking
the condition of mercantile credits as Il
whole, it seems safe to assume that,
while there may possibly be further
trouble during the current month IN
that quarter, yet there Is no sufficient
reason to apprehend any serious condi-
ton of affairs. HENRY CLEws.