Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-05
WALL STREET GOSSIP.
A. Dissertation on the Silver Question-For-
eIRn Financial Situation Threatening.

/
A. A.DissertatlOn on the Silver QuestiOn-For-
| eIgn Financial Situation Threatening.
New York Special to John N. Oakley Col
I NEW YORK, January Alt is understood
that bill will be introduced in Congress on
Monday, embodying the suggestions of the
| Secretary of the Treasury in regard to silver
| deposits. 1t will be remembered that this plan
| contemplates the cessation Of the coinage of
the token" dollars which have been minted to
the minimum Of S2 100000 monthly since 1878.
This being done holders of silver bullion can
deposit it in the Treasury of the United States
and obtain therefor certificates of face value
equal to the market value Of the bullion at the
time Of deposit. such certificates being redeem
able by the Treasury in coined dollars or silver
Dullion OF Quantity equal in the market TO
the face money value of the certificate.
This makes the Government a speculator IN
bullion, or guaranteer that these certificates
OF the people. This is eminently proper, and it
VIII make a currency vastly superior to the
present silver dollars, which are worth only
about " cents as bullion. 1t is high time the
coinage OF these bogus and dishonest dollars
should be stopped. Since the demonetizati0n
OF silver by Germany in 1873 followed by the
closing OF the mints of the Latin Union-
France, Italy Belgium and Greece-to the free
coinage of silver this metal has been depre-
ciating. Concurrently there has been q fall in
prices OF commodities and merchandise, and
Lnes6 changing c0DQltl0nS have borne so heavily
on commerce that few years ago Parliament
authorized royal commission on the depres-
sion of trade.
While the fall in prices of commodities and
merchandise has doubtless, in q measure, been
due to causes inherent in their production and
consumption it must be confessed that the os-
traeism Of silver increased theIuse for gold and
thus lowered the prices of everything, stated in
gold. The United States, by coming $3.50 co., ,O00
has done much to prevent further demOrall-
cation OF values. but the way chosen leaves the
country pursuing false policy in giving
forced legal tender value to a coin of depre-
eiated value itself. How much bullion would
be presented for conversion into Treasury Ger
uneates under Secretary Windows plan is
problematical. If large amount, it would as
slst in restoring silver TO its proper place as a
money metal. Greater courage would be given
to European nations which now feel the made
quacy Of their gold reserves, and with the two
metals generally used again, a rise in the
worlds prices would set in Therefore, it is
possible that Mr.. Window, if successful in in
Producing his measure, may be the means of in
itiasing an era of higher prices in commodities,
merchandise and securities.
The stock market started of buoyantly to-
DAY, and there was general advance. save in
half hour prices declined fractionally, partly
because Of realizations by traders who bought
for a turn. There can be no denial of the fact
that the market has been strong for several
days and that holders have shown no disposi-
tion to part with their stocks. It is also true,
we think. that large part of the buying has
Deen Dy pears to cover shorts. The short inter
est is probably smaller than 1t has been for a
month or more.
The bank statement ,nominally showed $685.
600 loss in reserves but the requirements were
nearly two and three quarter millions greater,
because of an increase of nearly eleven millions
in deposits. The actual cash held is nearly two
and half millions greater than a week ago,
but the loans have swollen about five millions.
The city banks have five million four hundred
thousand dollars less reserves than a year ago,
and their loans are seven million three hundred |
and fifty thousand greater.
There were rumors from London to-day that |
the Buenos Ayres crisis is about to break. ANY |
serious disturbance there would instantly reg |
lister itself in London, and we would feel the |
swell here. The foreign financial situation Is |
threatening, while with US the outlook is hope
full in the extreme. The general sentiment is |
bulllsh, tut the market is SO far as narrow and |
professional as ever, with lessened support by |