The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-06-26
PROSPECTS
The Fia"ac'ai Situation Assumes Il Cheer.
ing Aspect at Last and VIII Continue
to Improve.
Q U r EAvY CROP S.

o U r EAvY GRO S
hw York, June :2j.-Thc most sisnif
cant event of the week was the reductio,
OF the Bank of England rate of discoun
from 4 to 3 per cent For months pas
London has been the objective point O
interest, the storm center, so to speak, G
the financial world, and the clouds of dis
trust which had gathered in from al
! parts of the world threatened to burs
VITA renewed fury over those intrcpit
racers on the sea Of finance who had beer
carrying an over-prcss of sail in Soutl
American waters. The danger signal
| however, has been lowered; the outloob
Is brighter, and now that suspense is re-
iIcvcd Improvement shculd naturally fol-
low. Enterprise Of all kinds has been
! held in check for some inc past by fears
OF tight money. Conservatism appeared
imperative il manufacturing as well as
commercial and financial circles; and no
wise manager cared to incur obligations
extending into the fall months, which a
tight money market night interfere with
/ he result has hcen wholesome restraint
IN all directions, which, though pinchjng
severely in some quarters, has left gencr-
al trade in Il soundcr condition than be-
tore III spite of the common complaints OF
duncss. The reduction of the Bank of
England rate means that the tension in
Europe is abaiing; that London is prepar-
ed Tor all Russian demands for gold, and
has no immediate apprehension about
scndlng gold back to the United States
daring the months in return for such
grain and other produce as Europe will be
Obliged TO buy.
Coincidcnt with the removal of fears
about the foreign monetary situation, the
home outlook has also cleared and proves
more assuring. The treasury is expected
to meet all obligations this fall, SO that
uncasiness on that score is set at rest.
The Western bank reserves are larger
than usual, and each year the west grows
more independent of eastern aid. Then,
too The money now in circulation i'm the
United States stands at about ! ,5Ol mill
ions. 4 larger sum than ever before at this
season, aud larger also than al the times
of heaviest crop demands. In 1883, the
year Of big crops, the total circulation was
l,3n millions, while now the amount in
circulation is ,50l millions; showing of
l33 millions in favor of this year. Furth
CT evidence of confidence in the future Of
money is shown by frcer offerings in time
money, extending from sixty days to eight
months. Merchandise imports, though
smaller than year ago, are still running
in excess of exports. creating an adverse
balance; but the probability is that this
will he settled later on in other ways than
by gold shipments, though, should further
amounts leave, no concern need be felt
unless they reach much larger figures
than now seem possible. In the event of
additional shipments of the precious
metal, it will be due TO the fact that we
have, as usual, but little else to send for
ward at this season Of the year. 1t is
the period between hay and grass, as it
were in our crops.
The wheat and corn crops arc far the
most important of any single influence
affecting the future Of stocks. lndica-
lions suggest the possibility of the lars-
est V heat crop on record, estimates vary
Ing from :5DO, 000, 00U to 550,GC0 ,0G0 bush
els. These figures should leave a surplus
Of about 50 eco, 600 to geo ,0O0, 000 BUSH
els for export If prices only afford a
reasonable profit to growers, and the
shortage in Europe renders it likely that
they will, ii is easy TO see the effect OF
such Il harvest, not only upon The interior,
but upon tie trade, rairoad'and financial
interests OF the whole country. England
will have to take cur wheat and pay us in
gold Our sccuii tiles will become intrlnsl-
cally better in the opinion of both home
and foreign holders. In short, should
present hopes concerning the harvest be
realized, it would impart a degree of pros
ncritv such as has not been seen for sew
cra wears past However, it will not 40
TO discount such hopes too rapidly. The
crops are not vet beyond danger. Pru-
dent men will therefore keep close watch
on crop news for the next few weeks and
act accordingly. There will he nothing
to fear in the foreign situation tor some
months to come. July disbursements are
close at hand, and an investment demand
Of some Importance is usually experience
ed for stocks during that month. Our
opinion regarding the immediate future is
hopeful, and favorable to q moderate i'm
proyement in the business conditions.
Comfortable money, moderate prices for
stocks and good crops are sufficient to
counterbalance all the weak points dis
~ :: ,:,,n HWY CIEWS