The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-08-19
THE. FINANCIAL REVIEW.
The Special Importance Attached to
the Enormous Wheat Crop
in America.
ReassurinR Declarations Of the
Governor Of the Bank of
England.
A Word ~ To tho Prospects of HOms
Money~-Do Not Load Up Too
Heavily.

NEW YORK, Aug. 49, Special. THE last
circular issued by Harry Clews to the pat
rons OF the firm OF Henry Clews d. Co..
says: In my last weeks survey of the in
fluences affecting the stock market gave
special prominence to set of factors which
might be construed favorable to the selling
of certain securities. At the time those
factors were 30 exclusively occupying the
attention of operators that it appeared
probable that they might produce at least
temporary decline; and with that view, /
suggested selling special stocks rather than
buying. At the same time, however. the
market had another side and another set Of
Influences, which though. for the time
being dormant and uninfuential, were yet
plainly destined to have favorable inhu-
ence upon prices sooner or later, and as the
market of the past two weeks seems to have
been i'll some measure moved by those con-
sideratons it may be proper to make due
reference to them.
The wheat crop now promises to surpass
both in quantity and quality the earlier 0s-
Inmates, 5S0,O00,000 to 6OO,OOO,OOO bushels
Eeing now regarded as not an impossible
yield. The special importance attached to
this fact is that wheat being 80 largely an
export crop this unprecedented supply of it
giver US the greater power for controlling
the return Of the abnormal exports OF gold
for the last eight months. If Europe should
need double the average supply of Ameri-
can wheat of the last ten years, we shall be
in a position to send it. This fact cannot
reasonably be denied favorable allowance
in estimating the probabilities of reflux
of gold to the United States.
1t is quite possible that unfavorable feat
ures in the condition of European finances
and commerce have been exaggerated in the
common estimate. 1t always happens,
after q panic, that fear and apptehen-
sion unduB sway the public mind and
make thes after-effects more serious
than they might O. need be.
mediately after the crash, recovery sets in,
and though it may proceed slowly and
amid timidity and caution on every side,
yet the process is one of sure improvement.
Extraordinary as have been some OF the as
poets OF the late European panic, yet the
practiced tinanciers of London, Paris and
Berlin know how to gauge the magnitude
and bearings of the crisis with infallible
exactness; and it is perhaps quite safe to
say that the idea prevailing on this side the
Atlantic. that those men are trembling
with apprehension at The probability of
further great commercial or financial dis
asters, is broad misconception, and one
which does not reflect favorably on the
average information of the Wall street
observer. In this connection, it is worth
while to repeat here the following pregnant
words of the governor of the Bank of Eng
land-who is counted the most sagacious
among the great financiers of Europe-as
recently uttered to a representative of the
New York Herald:
II wish to say emphatically that there is
no basis for the reports that a great tinan-
cial disaster is impending in Great Britain.
1t is quite untrue that any important bank
ing house is in danger save one and the af-
fairs of that are now in hand. Az for the
chartered banks they are all sound, so far
as know. There have been great losses.
it is true. but these Losses have been spread
over large numbers of PERSONS and, as a
rule, the losses have been already met and
paid, leaving tho losers poorer, but still
solvent. There will be a few failures of
cou Sc, but none of any importance-none
that could affect the money markets. The
result of the great losses in South America
and elsewhere has been to bring people to
their senses. Speculation hus completely
stoi ped. The difference between the Wild
ness of last year and the depression of this
is the difference between the convex and
the concave-where there was hill there
is now a hole. People are poorer and
ter. The talk about q coming
panic is unfounded. AS said before, the
losses are already known, and i'll most cases
already paid. One good result of the syn
dicates, trust companies and the like is to
divide the losses among a multitude, and
so prevent crashes. l have been adverse to
making Any declaration on the situation,
because of my official position as head of
the Bank of England. But l consent be-
cause am aware of the strong efforts that
have been made in America and on the con
tinent to create panic without any ex-
cuse."
MIR. Lidderdae also stated, in respect to
the Barring Brothers, that their affairs
were found to be in an entirely solvent con-
that, beyond special liability of E7,0oO.-
900 to the Bank of England. (which III no
way concerns the public" the estate now
owes less than half u million pounds. The
governor further said that "the only over
shadowin9 danger in the recent crisis
draw from foreign banks large amounts
of gold, and that issue having
been met, "Russia could not bring about a
crisis even if she wished" These explana-
tons and opinons from the highest pos
sible authority carry large weight OF
invaluable assurance. They throw upon
the distrust felt quite extensively on this
side the Atlantic Just the kind of light the
situation calls for-the opinions of the one
man who knows with more breadth and
detail than any other authority the true
facts of the European position. In the
light of these assurances, we arc justified
in dismissing from current estimates of the
future at least all elements of special
danger, all apprehensions of impending
catastrophe. We must expect the dullness,
caution, contraction of credit, commercial
reaction and decline in trade values
h,oughout Europe that always and neces-
sarily follow great crisis; and to say that
is to say that we may not calculate upon
the usual foreign demand for our securities,
nor upon any speculative activity i'll them
either Mt London or on the Continental
bourses. The tone of Governor
Lidderdale's remarks does not lend
any even inferential support to the idea
cherished here that any special effort ia
likely to be made to prevent the retlux of
gold to this country, should the natural
course of our exchanges call for it. Rather,
with tho absence of any special impending
dangers. tho elimination of Russia from the
situation, and tho low rates of money and
absence of speculation. it would seem to be
to tho interest of European bankers to
offer no obstacle to the return Of gold to
the point whore it ia likely to DO most nat
urally and urgently needed, and where its
use will be most beneficial to the world at
large.
1t seems proper to add word as to the