Telegram-herald. ([Grand Rapids, Mich.) 18??-1892, 1891-06-22
EVERYWHERE ASSURING
Such is the Worlds Present Bust
ness Outlook.
TIE LATE FINANCIAL SIORY CEyIER
1hs Federal Treasury ssand-W ester q
bAak RsssEves-Nsnsy IN Cireaistisa
big Creps-EuEops VIII Have
10 Take fhsax-

ysw YoRx, June 2l.-The most signih-
cant event Of the week was the redue-
ton OF the Bank Of England rate OF
discount from 4 10 3 per cent. For
months past London mas been the OBJ
lectlve point OF interest. the storm
center, 80 TO speak. Of the financial
world; aud the clouds Of distrust which
had gathered in from ali parts of the
world threatened 10 burst With renewed
fury over those intrepid racers on the
SEA of inance who had been carrying
an over press of sail IN South American
waters. The danger signal, however.
has been lowered; the outlook 5
brighter, and n0w thar suspense Is re-
heycd improvement should naturally
follow. Enterprise OF all kinds has
been held in check for some time past
Ly fears OF tight money. Conservatism
appeared imperative IN manufacturing
as well as commercial anu IinaEclal cir-
cies; and no wise manager cared 10
incur obligations extending into the fall
months. winch ttgat money market
mght interfere WITH. The result has
been wholesome restraint IN ali dlTeC-
tOns; winch, though p,nchIng severely
III some quarters, has left general trade
III sOundsT eoRdltlon than before II
spite OF the common complaints of
dullness. The reduction the Bank OF
England rate means tina. the tension IN
Europe = ahatipg; that London i pre-
pared for all Russian demands for gold.
SD has no immediate Apprehension
aoout sending gold back 20 the United
States during the fall months IN return
N
Europe VIII be obliged 10 buy.
COincIdent with The removal of fears
about the foreign monetary SITUATION,
the home outlook has also cleared and
proves more assuring. The I. easury
isexpectcd 10 meet all Obligations THIS
fall: so that uneasness on tnat score is
set ~ rest. The Western bank reserves
are larger than usual, and each year
the West grows more independent OF
Eastern and. Then, too, the money
now IN circulation IN the United States
stands at about 1901 millions, larger
sum than ever before at this season.
aud larger also than 1T the times OF
heaviest crop demands. In lSSS, the
year OF big crops. the total circulation
was 1871 millions, while now the
amount in circulation is 1904 millions;
showing of l33 millions in favor of
this year. Further evidence of conf
dcnce IN the future OF money - shown
by
Freer Offerings in Time Money,
extending from 90 days to eight months.
Merchandise imports. though smaller
than year ago. pe still running IN
excess of exports, creating an adverse
halsnce; but the probability IS that tins
will he settled later on IN other ways
t.an 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 preCions metal, It will be due TO the
fact that We have, as usual, but little
else to send forward at this season of
the year. II IS the period between hay
and grass. as 1t were, in our crops.
the wheat and corn crops are lar the
most important of any single influence
affecting the future of stocks. Indlca-
tons suggest the possibility of the larg-
est wheat crop on record, estimates
varying from 500. .0O0, 900 to $50, 600, ,0CO
bushels. These figures should leave
surplus of a.out $50. 900 900 To- 200, ,000,-
coo bushels for export. Ii prices only
afford reasonable profit 10 overs,
anil the shortage IN Europe renders 1t
likely they will, II - easy to see the
effect OF such Il harvest. not only upon
the interior. but upon the trade, rail-
road and financial interests OF the
whole country. Europe will have to
take our wheat and pay us in gold.
Our securities will become intrinsicdlly
better IN the opinion Of both home and
foreign holders. In short, should pres
ent hopes concerning the harvest bc
realized, 1T would impart degree of
prosperity such ~ has not been seen
FOR several years past. However, 1t
will not do to discount such hopes too
RAPIDLY. The crops are not yet beyond
danger. Prudent men will ther cfore
keep close watch on crop news for the
next few weeks and act accordingly.
There will be nothing to fear IN the
foreign situation for some months 10
come. July disbursements are close at
hand. and an Investment demand OF
some Importance - usually expert
enced for stocks during that month.
our opinion regarding the immediate
future - hopeful, and favorable to a
moderate Improvement in the business
conditions. Comfortable money, mod
crate prices for stocks and good crops
are sufficient tn counterhalance all the
weak points dlscoyerabie at this time.
HENRY CLEws.