Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-09-29
PLENTY OF MONEY.
Action of the Treasury as Effective as
Could Have Been Devised,
The Railroad situation Not An Encouraging
one-The Effect OF the Present Money
Market on stocks.

most needed. his purchases OF 91a pc
cents and prepayments of interest on tn
fuurs, although successful in making
special disbursements TO the extent o
considerably over $50 200. 600, had ye
failed to appreoiabIy increase the amour
Of currency at the point where it va
most vitality required, VIZ, in the re-
serves of the New York banks. His offel
10 buy SIG 200 900 of fours, however
was expressly aimed AT bonds known Il
he held in large masses in this city, and
enabled him TO purchase SIC, 800, 900 al
most entirely from local holders; so thai
nine-tenths Of the proceeds, or close
upon $50 200, 600, goes straight into The
clearing house banks. This relief is as
direct and effective as could have been
devised; and if il fails TO restore COM
plete confidence and ease, the cause OF
the failure must be sought elsewhere than
in any scarcity of money. In addition to
this source of relief, the secretary con-
tiuues to buy AZ per cents and to pre-
pay the years interest on the tours
from which combined sources an average
of about 81 900, 0GO daily comes out OF
the treasury. Beyond these special sup
plies Of money, we appear to be verging
Upon an increase in the exports of wheat
and cotton which may possibly result in
imports Of gold, though probably not to
any large extent, as the Bank of Eng
land is not in position TO afford any
considerable loss of specie. And, as a
further additional supply of money, we
shall have about So, 400, 900 per month
coming from mint purchases of silver
bullion.
Under these circumstances. any
further experience of stringency, for the
remainder of the year, seems to be the
last thing expected. Indeed, it be-
comes a question whether we may not
pass from condition of dangerous strin-
Eency to one of actual plethora of money.
And, If that result does not appear, it
will probably be because the abundance
of money has revived the speculatons in
produce which have been one of the
chief causes of the recent stringenoy.
For the present, however, the relief has
been complete. Money. from being I'M
obtainabie on time, or on discounts. has
become readily procurable at 6 per cent.
on three months and 6@6% on twelve
months, and at like rates on good COM
mercIal paper. On time loans, however,
a strict discrimination is exercised as TO
collaterals, only divIdsnd-paying stocks
being accepted; which suggests some
want of confidence among lenders as &c
the current value of stocks. On call
loans the rate is per cent. upon mis-
cellaneous securities. These rates are
too high TO admit of large borrowings,
and borrowers are postponing In the
hope of getting better terms when the
u Guidance of money becomes more
fully felt
Although 1t is generally conceded that
he crisis is past and that, SO far as re-
poets the money market, the prospect is
clear for some months aheld, vet the
effect on the stock market has been COM
parHtivelY mild. There has been a
moderate advance in prices, but the
room traders continue to be free
sellers and buying seems to be confined
mainly to the class of smaller operators.
Nevertheless, the removal of the money
danger virtually creates, in a broad
sense, new situation, and that in favor
OF temporarily better prices. The i'm
mediate future, however, will be occu-
pied with process of adjustment to the
new situation. Before large under
takinEs for "Iong' account are made,
time loans must be arranged, TO which
the current high rates are an obstacle.
Intending purchasers of large blocks of
stocks are therefore liable to employ
themselves for the moment 10 promoting
a decline rather than su advance; and
the more SO because there are certain
important factors which make il prudent
10 begin "bull' operations upon the
lowest possible scale of prices, among
which factors the following may be NELL
toned
81 ia NJ
couraging one. The arbitrary enforce
ment OF the Granger laws is proving
serious obstacle to the Western roads, as
shown IN the able report of the president
of the st. Paul company, which has pro-
duced marked impression on 1.-The
street, The shortage of the corn and
wheat crops foreshadows a material re-
ductiOn in the amount of grain and hog
products TO be transported during the |
next nine months; SO that it appears to
be out of the question TO anticipate O |
of the liberal rate of earu- /
ings with which the roads have been I
favored during the last eight months; |
and this probably is confirmed by the |
falling of in the current business of the |
Western lines. The efforts among the |
Western roads TO control competition on |
through traffic have proved so abortve |
that little is to be expected from that
anu the more so as the large !
mileage of new road constructed within /
late years Is now making itself felt as an
important fresh reinforcement OF COM
petition. Railroad capitalists, indeed,
are growing wearied of attempts to -egu-
late business through voluntary agree
meuts between competitors, and are in
turning their attention to the
more effective policy of consolidation.
This, though promising for n distant
future, suggests the probability Of hos
tility during the interval.
But notwithstanding these prospects,
il seems fair TO expect q moderate
advance in prices as natural
first effect of the ease in money; after
W hich, we may probably witness a re-
sction and some considerable liquidation.
Whilst, therefore, buying may at the
moment afford fair promise of profits,
| wonld recommend conservatism, the
selection of the better class of stocks,
on moderate rises, and stand
ing ready for the chances OF a downward
reaction after a moderate run of i'm
provemept. HENRY CLEws.
PROGRESS OF THE FUTURE.