Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-07-07
The Henry CIews Circular.

| the question 10 look for the immediate real
! ization of the expectations of an importaLu
| upward movement III stocks tnat have been
entertained ever since the beginning Of the
spring. Every few days brings some fresh
cause OF disturbance The apprehensiye
feeling in Europe, though doctOred by first
one eXpedient of haut finance ,and then an
other, shows little abatement, and mas the
effect OF keeping up the extraordinary eX-
ports of gold.
1t is very many years since we have wit
messed such dlsorganlzed condition of
financial relations between this country
and Europe as has recently developed Such
Is the distruSt prevailing at the foreign
centerS that numerous bills heretofore con
sidered good drawn here on European
houses have become, in Il large measure,
unacceptable; and the consequent scarcely
of negotiable exchange compelS continual
ton of the shipment of gold long after the
balance OF our accounts with the Outsids
world has ceased TO rule against US. A con
dition of things more calculated TO cheek
business and to enforce liquidation in for
eign commerce could hardly be conceived.
Even if there were no real reason for this
distrust toward bills of exchange, this sort
of discrimination is calculated to cripple
importers and exporters in ways
that can hardly fail to disturb cou-
tidence and produce embarraSsnentS, which
is dangerous treatment under present con-
ditions. II is undoubtedly gratifying
evidence of strength that we have
been able. without any signs
of suffering. TO so long endure the with
drawal 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 unsuitable
because of the distruSt directed against the
foreign houses on whom they are drawn,
we encounter kind of gold drain of much
June shipments, amounting to nearly SO
DOC, 900, have been of this forced character.
European bankers may deem IL wise to take
in sail in every direction. but they cannot
be ignorant that to impose violent con-
traction upon these important foreign trade
credits must precipitate more serious dan
gers than they are now seeking to avoid.
OF course, Europe has TO provide against
the effects of coming general deficient har-
vests, with the natural bad results to inter-
nal trade; and the ontrOlling bankers may
deem it prudent to discourage general i'm
ports SO as to keep down the exports of gold
that must be made in purchase of the unus-
ual American surplus of Dreadstufs. Such
a purpose implies bad dilemma; but its
significance TO the United States is far less
serious than it is 10 Europe. TO the rest of
the world, it means depression and sacri-
flee; to US, il signifies the purchase OF our
imports at low prices and the sale Of our
food exports at high prices.
The bearing of these prospects upon our
market for securities is perhaps less dis
couraging than might appear at first sight
1t is true that we cannot calculate upon the
usual support from the foreign markets.
Perhaps all we can expect IN that direction
is that the preference given by foreign in
vestors to American investments, amid so
much loss on others, will suffice to prevent
any additional return of them home. Tho
speculative spirit in London and OF the con-
tinent is too completely crushed 10 allow OF
any important export of our stocks to those
markets at present. What speculation eX-
lists on this side for the time being must
therefore rest upon its own independent
basis. But is this discouraging featured
On the contrary is it not an element Of
strength Europe no longer has any float
ing supply of securities to send back upon g,
US, which would De an important support
TO pull movement and the fact that We
have made such a clear liquidation Of ou.
floating foreign Indebtedness and must
stand a creditor nation for some months TO
come would protect speculation from any
possible interruption from the course of
the foreign exchanges.
In view then Of the foreign exchanges, OF
the still unbroken promise of an abundant
harvest, and OF the unexpected abundance
of money at this center after parting with
seventy millions of specie, we do net see
why strong combinations of men should
find much difficulty in imparting a prohta-
bic ''bull'' impulse to Wall street later on if
they desire to do so. For the moment how
ever, the bears have a powerful hand,
which calls for cautious buying and 0n-the
raids ODly