The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-07-07
WEEKLY FINANCIAL REVIEW.
Upward Movement in stocks Not Expected
at Present.
BANKING HOUSE OF
HENRY CLEws 81 Co., =
II, 10. Is Broad St., 35 Wall st.

IlENh1 SIENS (S Soss
II, 10, Is Broad St., 35 Wall st.
Especial Correspondence of The INDEPENDENT. !
New YORK, July 3.-Plainly, it is out of
the question to look for the immediate
realization of the expectations of an i'm
portant upward movement in stocks that
have been entertained ever since the begin
ming of the spring. Every few days brings
some fresh cause of disturbance. The APP
%prehensive feeling in Europe, though doc
tored by first one expedlent of haut finance
and then another, shows little real nbate-
ment, and has the effect of keeping up the
extraordinary exports of gold.
1t is very MANY years since we have wit
messed such a disorganized condition of
financial relations between this country
and Europe as has recently developed. Such
centers that numerous bills heretofore
considered good drawn here on
European houses have become,
in q large measure, unnegCtiable; and the
consequent scarcity of negotiable exchange
compels a continuation OF the shipment of
gold long after the balance of our accounts
with the outside world has ceased to rule
against US. A condition of things more
calculated to check business and 10 eufo, CO
liquidation in foreign could
hardly be conceived, Even if there were
nc real reason for this distrust towards
DIS Oh exchange, tllH sOIt OF ulbCrln1Da-
ton is calculated to cripple importers and
exporters in ways that can hardly fail to
disturb confidence and produce embar! ass
ments, which is dangerous treatment under
present conditions. 1t is undoubtedly q
gratifying evidence of strength that we
have been able, without any signs of suf-
fering. to so long endure the withdrawal of
the European banking balances which arc
usually allowed to rest here, and to pay
ihem off in cash without a vince: but when
Dur export bills become unsuitable
because of the distrust directed against
the foreign houses on whom they
are drawn, VIZ encounter a kind
of gold drain of a much more serious ma
ture; and yet nearly all the juno ship
ments, amounting to nearly twenty mil
lions, have been of this forced character.
European bankers may deem it wise to TAX.
in sail in every direction, but they can not
be lgnorant that to impose "A violent con-
traction upon these important trade cred
Its must preclpltAte more serious dangers
than they are now seeking to avoid. or
course, t.u ope has to provide against the
effects of coming general deficient harvests,
with the natural bad results to internal
trade; ana the controlling banke Is NAV
deem 1t prudent to olscou' age general I'M
ports, SO as to keep down the exports OF
gold Il at must be made in purchase of tine
unusual Aue lean Hu plus of brsaLstuna.
Such a purpose implies Il bad dilemma; but
its siGniticance to the United States ia far
less Sc luus than it is to Europe. 10 the
rest Of the world it means depression and
sacrifice; to us 1t signifies the purchase of
our imports at low prices ndtho sale of oat
food exports At high prices.
Ihe bearing Of theae prospects upon our
market for securities is perhsps less Gis-
cou:agin2 than might appear at first sight.
1t is true that we cannot calculate uDon the
usual support from the foreign markets.
Perhaps all VIC can cXLect in that direction
is that the preference given by TO eiQn in
yestofs to American Investments, amid 10
much loss on others, will su lice to prevent
any additional return OF them home. lhe
speculative spirit IN London and on the
continent Is too completely crushed to
allow OF any important export of our
stocks to those markets at present. What
speculation exists GA tits side for the time
being must thu reiore rest upon It's own IN
dependent basis. But is his a dis ourap-
ing feature? On the contrary is il not nm
element of strength? Europs has no loDoer
any hoating supply of securities to sand
back unon us. which would be an inportnnt
support to Il bull movements: and tho
fact that we have made such Il clenr lioui-
datlon OF oar floating foreign indebted 1ass
and muGt stand p creditor nation for sonla
months to come would rrotect speculatinn
from any possible interruption from the
course OF the foreign EXCHANGE.
In view then of the foreign EXCHANGES. of
the still unbioken promise of an abundant