The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-06-19
THE MONEY MARKET.
The Prospects Of Favorah!" Crops Greatly
Improves the Situation
BRIGHTER PROS ECTS.

BRIGHTER PROSPECTS
New York, June l7-Eycnts during
the week were mostly Of a favorable
character The situation abroad, which
has been the chief source of anxiety,
shows further satisfactory Improvement.
The best evidence Of this was the de-
cline IN gold shipments and the rise in
the Bark of England's proportion OF re-
1906 per cent. in !; week. On May nh.
or little ever Il month agv, tie ratio was
down to SO .35 per cent. So that it can he
seen how successful this institution has
been in strengthening its reserves The
Bank now holds about c5,000,G00 gold
more than at this time in 1880, and is in
much better position t. meet ali prob
able demands than was thought possible
Il few weeks ago. Whatever sums MAJ
be withdrawn BY Russi" thcF vii shortly
be disburssd again in debt payments.
The Bank rate is still held al I per cent.
but in open market the rate for money is
2@2La per cent; suggesting further de-
cline in the official rate Another iNdi-
cation Of rcviying confidence il London
was the failure of the Joint stock banks
to support the Bank Of England III main
tanning discount gates. This movement
included several Of the leading banks Of
Great Britain. but was complete failure,
for the simple reason that borrowers had
no difficulty in finding ii! necessary ac-
commodation elsewhere at lower rates.
The unfavorable progress ri the 5afinG
liquidation also cXerted Il :53oi effect;
and, altogether, the outlook II the world :
financial center is certainly much bright
er than in March or April. Paris and
Berlin are still in somewhat strailc"cd
circumstances, bu; less tension is natur-
ally reported there as & rcault Of improve
mcnt in London.
1t is upon the home situation, however
that we chiefly depend regarding the !n-
turc. Europe may, if she wishes, tempo
rarily lessen her holdings OF American
stocks. but their superior intrinsic value,
in comparison with other investments. Is
certain 10 assert Itself and restore them
into preference again. II Americans arc
the best securities on which 10 realize III
times of depression. they must neceSS"r-
liz be the best to buy when the change
for the better sets in. The all-important
factor in determining future values OF
citu1tipr IluIBi!r.
this is in our favor, as frequently pointed
out, and as tho season advances evidences
of Improvement seem TO multiply The
certainty of an abundant harvest At home
and a deficient one abroad increases each
dav Our crop bureau states that the IA
crease in winter wheat acreage Is ID per
cent. and in spring wheat, 81 per cent.
while the condition Of both stands at the
high average OF 9G.6 per cent. and 32.6
per cent, respectively. TO more fairly
understand the effect Of good crops upon
business and railroad interests, ii should
he remembered that ~. present We are
suffering from the short crops Of lo'O. In
spite of this drawback, the declines in
earnings are small and many roads show
unexpected gains, when the unfavora''ie
conditions are taken into consideration.
Money continues easy, and promises 10 50
continue until the crop movement; the
present quictncss OF trade tending TO IN
crease supplies. More attention has been
given to Secretary Fosters action in ex-
tending the A., per cent. bonds than the
question deserves DO not believe he
will attempt any step that means conirac-
ton OF the currency, for that would be
less popular than success in extending
these bonds at | :, per cent. Every one
understands, also, that such low rate OF
interest is possible only because OF the
advantages of holding these bonds. other
than their safety and the high credit 0!
thc government Western banks. who
hold the bulk of outstanding al.s, may
be willing to accept L lower rate OF inter-
est than eastern banks, the higher money
rates of the west rendering circulation
more profitable in that section iiI&n here;
but, as Just said, more Importance has
been attached to this clement than 1t de-
serves. The treasury is, upon Secretary
Fosters statements, able to meet ell obi
cations, and the monetary outlook IS
clear until the fall. When the crop
movement begins, thcn caution will be
necessary. 1t is likely that, through
sales of produce and possibly securities,
we shall regain much of the gold recent
" spared. The bank reserves are IN
GOOD shape, and it need not lie forgotten
that each year the west shows itself less
and less dependent upon the east for its
suppIics OF money, and the coming tall
may prove no exception. We do not
look for any radical Or immediate change
in the stock market, bat the present posi-
ton Of affairs certainly jnstiiies taking q
more hopeful opinion regarding the tu-
ture; and good stocks at present prices
ought to Weld profit to buyers with rea-
soroLlc cancellations. HENRY CIEws.