Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-08-07
HENRY CLEWS' CIRCULAR.
South American Financial Troubles secre-
tary WINDOWS Rond Purchases - The
Country's Wheat and Corn Crops.

A circular issued by the banking house
| of Henry Clews s Co., New York, July
| 81, 1890, says: The South American
political and financial troubles have been
| instrumental in drawing thus far this
week through london six aud one-half
millions of gold from New York. This
heavy export of the precious metal, with
| a prospect of more to follow, makes an
| offset to the timely action of Secretary
| Window of changing bis mode of buying
| bonds, which admitted of the treasury
! paying out over SO 900, 600 against bonds
bought. In addition to the gold ship
ments, over 200 900 ounces OF silver
have also gone forward to London in the
| last few days. The advance in silver to
| ll2 is partially due to the export de-
mand together with the anticipated early
requirements to meet the needs of the
secretary OF the treasury under the new
silver law. Nine million ounces will be
required to be bought for that purpose
! on or before the 18th OF October, which
| amount will about take up all the avail
| able silver in this market. The present
position of silver fully verifes my early
| predictions IN reference to it when the
| silver bill was under discussion in con-
| gress At that time q great many peO-
| pie supposed to be authorities were per-
! sistent in their predictions that IN the
| event of the passage of the silver act
| this country would become the dumping
ground for all the surplus silver in the
world and predicted great disasters
| therefrom. l was fully as pronounced,
| however, in giving my opinion that
| there was no surplus silver held any
where, and consequently there was no
cause for apprehension from that quar-
| ter.
When the secretary enters the market
| as a buyer for his first 4, 500 900 ounces
| for the mouth of August, meeting, as he
will, London as a competitor, the price
| is not unlikely to advance to 81 10 at
| least; and l venture the opinion that be-
| fore this present year is ended that Sl.20
| and above will be firmly established, and
its equivalent in London as the price per
ounce for silver. The effects of this ad-
vance in silver will have a corresponding
effect on all products produced by COM
netting nations, which will make per-
maneutly a higher valuation than in
recent wears for American wheat, corn
| and cotton, and in consequence add in
creased wealth to our producers, which
will not be an undesirable result. The
| effect of this insrcased wealth in that di-
rectiou cannot fail to be generally bene-
fetal to all business in this country.
Although the wheat and corn crops
of this country are likely to be consid-
erably less in quantity, as compared
| with last year, still at the advanced
price, which is already materially higher
than that of last year, the farmers will
become richer from this year. smaller
crops than they did from last years
very large crops.
Corn last year in New York sold at
forty-four cents per bushel. now the
price Is f1fty-two cents. Wheat last
year at this time was about eighty-five
cents, as against ninety-six cents at the
present time. Oats last year were
twenty eight cents, they are now thirty
eight cents. The advance of silver has
had good deal to do already with the
present advance in these products, but
of course the prospects of diminished
crops has also entered into the calcula-
tions.
The secretary's large purchase Of
bonds under his new system has been a
brilliant success, as well as great well
come TO the business community,
especially as the funds released thereby
from the treasury were much needed for
business wants. A part of the bonds
bought were the 4 per cent. issue, at
about 1874, which was material advance
on previous purchases, but even at that
price 1t should not be considered too high,
as the government after the Mexican
war was compelled to use it's surplus in
ideptically the same way as now for the
purchase of bonds, and at that time paid
as high as 126 Tor the bonds then out
standing. 1 question, however, the
wisdom OF the secretary buying at this
time any part of the per cent. issue, as
these bonds do not mature until the year
1907, whereas the 4 = per cents mature
September l, 1891, which is now close
by, the outstanding amount of which is
about SLOT 900, 900. This issue of bonds
will be, IN my opinion, Is much as the
United States treasury will have the
ability to take care of, in the mean
while, after providing for the drain that
will be made on its surplus through the
various appropriation measures.
The sagacious policy of good mer-
chant is to let far-of obligations run
while he makes full provision IN advance
for the maturity of early ones. The
secretary under the circumstances, would
be, IN my opinion, justified after buying
all the AZ per cent. bonds he can under
par and interest, to announce that he
will pay par and interest to maturity for
them land then call them in from time
to time in such quantities as fast ss he
has the ability to do so. This action !
would place the United States govern |
credit pre-eminently the highest of any
nation in the world, especially when |
taken in connection with the fact that |
our government has paid of its bonded |
obligations at the average rate of oyer |
500, 900 900 each year for the past !
twenty years, commencing when the |
public bonded debt was 81 800 200 200, |
which brings the amount now outstand- |
ing 10 the following:
Four and one-half per cent. due Sep
TENDER /, 1881 --.--.- --.--sluf, UVU,VvO |
Four per cent, due 1907. $50, 600 900
Currency si1es) due in the years
1S95-6-1-s-9 ....-.--.---.-.......'' 6z.bZ3, 405
Total .s766, S2s, 49, |
This is record of debt paying which |
no other nation can boast of since |