Telegram-herald. ([Grand Rapids, Mich.) 18??-1892, 1891-07-06
CAUSE Or DISTURBANCE
Some Fresh One Comes Every Few
Days in Finances.
EUROPE is STILL APPREHEySIyE
Disorgsatssd Coaditions ef financial
Relations Bstw cen the Old World
and the Nsw-Ws Must stand
Creditor Nation.


Of the question 10 look for the immedi-
ate realization OF the expectations Of
an important upward movement IN
stocks that have been entertained ever
since the beginning OF the spring.
Every few days brings some fresh cause
Of disturbance. The apprehensivs
feeling in Europe, though doctored by
first one expedient OF haut finance and
then another, shows little real abate-
ment, and has the effect of keeping up
the extraordinary exports OF gold. Ii
IS very many years since We have wit
messed such disorganIzed condition OF
financial relations between this country
and Europe as has recently developed.
Such IS the dlstrust prevailing at the
foreign centers that nume9Ous bills
heretofore considered good drawn here
on European houses have become, III a
large measure. unnegotlable; and the
consequent scarcity OF negotiable ex-
change compels 3 continuation of the
Shipment of gold long after the balance
of our accounts with the outside world
has ceased TO rule against us. A con-
ditlon of things more calculated to
ton IN foreign commerce could hardly
be conceived. Even if there were no
real reason for this distrust towards
bills of exchange, this sort of discr.mi-
nation is calculated to
Cripple Importers and Exporters
IN ways that can hardly fail to disturb
confidence and produce embarrass-
ments, which is dangerous treatment
under present conditions. 1t is un-
doubtedly gratifying evidence Of
strength that We have been able, with
out any signs of suffering, to so long
endure the withdrawal of the European
banking balances which are usually
allowed to rest here, and to pay them
off in cash without vince; but when
our export bills become unstable be-
cause OF the distrust directed against
tine foreign houses on whom they are
drawn, We encounter kind OF gold
dram of much more serious nature;
and yet all the June shipments,
amounting to nearly twenty millions,
have been of this forced character.
European banker may deem 1t wise to
take in sail in every direction, but they
can not be ignorant that to impose q
violent contraction upon these import
ant foreign trade credits must precipi-
tate more serious dangers than they
are now seeking to avoid. OF course
Europe has to provide against the ef-
fects of coming
General Dedc lent Harvests.
with the natural bad results to internal
trade; anc the controlling bankers may
deem it prudent to discourage general
imports so as to keen down the exports
of gold that must be made in purchase
of the unusual American surplus of
breadstutfs. Such q purpose implies u
bad dilemma: but Its slgnificanc3 to
the United States is far less serious
than IT is to Europe. To the rest of the
world it means depression and sacrifice;
TO US it signifies the purchase OF our
imports at low prices and the sale of
! cur food exports at high prices. The
bearing of these prospects upon our
market for securities is perhaps less
discouraging than might appear at first
sight. Ii is true that We cannot calcu-
late upon the usual support from the
foreign markets. Perhaps all we can
expect in that direction is that the pref
erence given by foreign investors to
American investments. amid SD much
loss on others, will suffice to prevent
any additional return of them home.
The speculative spirit IN London
and on the continent IS too completely
crushed to allow of any important
export of our stocks to those mar
kets at present. What speculation ex-
ists on this side for the time being
must therefore rest upon its own nlde-
pendent basis. But is this a dlscourag-
ing feature? On the contrary is 1t not
an element of strength? Europe has no
longer any floating supply OF securities
to send back upon US, which would he
an important support TO "bulr' move
ment; and the fact that We have made
such clear liquidation OF our
Floating Foreign lndsbtedness
and must stand q creditor nation for
some months to come would protect
speculation from any possible Interrupt
ton from the course of the foreign ex-
changes. In view then o. the foreign
exchanges. of the still unbroken promise
Of an abundant harvest. aud OF the un-
expected abundance of money at this
centre after parting with seventy mill
lions of specie, we do not see why strong
combinations of men should find much
difficulty in imparting = profitable
s'bull" impulse to Wali-st. later on If
they desire to do so. For the moment,
however. the bears" have . powerful
hand, which calls for cautious buyl ng
and on the raids only.
HENRY CLEws.