San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-07-07
WEEKLY FINANCIAL REVIEW,
Specially Reported For the "Light'
by Henry Clews 4 Co.
ND~, VnnD Tnlu 9Th 1901

Plainly, it is out of the question &c
look for the immediate realization OF
the expectations of an important up
ward movement in stocks that have
been entertained aver since the be,
ginning of the spring. Every few
days brings some fresh cause of dis.
turbance. The apprehensive feeling
in Europe, though dOctored by first
one expedient of haut finance and
then another, shows little real abate.
ment, and has the effect of keeping
up the extraordinary exports of gold.
1t is very many years since we have
witnessed such a disOrganiZed cOndi.
tion of financial relations between
this country and Europe as has re.
Gently developed. Such is the dis
trust prevailing at the foreign centres
that numerous bills heretofore con
sidered good drawn here on European
houses have become, in a large meas
are, unnegotiable; and the conse-
quent scarcity OF negotiable exchange
compels a continuation of the ship
ment of gold long after the balance of
our accounts with the outside world
has ceased to rule against US. A con-
dition of things more calculated TO
check business and 10 enforce iiqui-
datiOn IL foreign commerce could
hardly be conceived. Even if there
were no real reason for this distrust
towards bills OF exchange, this sort of
discrimination is calculated to Grip
pie importers and exporters in ways
that can hardly fail 10 disturb conf
, an ,rNIrnn nnohnr
easements, which is danger
Gus treatment under present
conditions. 1t is undoubtedly a graf
flying evidence of strength that we
have been able, without any signs of
suffering, to so long endure the with
drawal of the European banking bal
Ances which are usually allowed to
rest here, and to pay them off in cash
without q vince; but when u export
bills become unstable because of the
distrust directed against the foreign
houses on which they are drawn, we
encounter q kind of gold drain of a
much more serious nature; and yet
nearly all the June shipments,
amounting to nearly 20 millions, have
been of this forced character. Euro
pean bankers may deem 1t wise to
take in sail in every direction, but
they cannot be ignorant that to i'm
pose a violent contraction upon these
important foreign trade credits
must precipitate more serious
dangers than they are o
seeking to avoid. OF course, Europe
has to provide against the effects of
coming general deficient harvests,
with the natural bad results to inter
nal trade, and the controlling bankers
may deem it prudent to discourage
general imports so as to keep down
the exports OF gold that must bemade
in purchase OF the unusual American
surplus of breadstuffs. Such a pur-
pose implies a bad dilemma, but its
significance to the United States is
far less serious than it is TO Europe
To the rest of the world, it means de-
preston and sacrifice; to us, it signi.
ies the purchase of our imports at
low prices and the sale of our food ex-
ports at high prices.
The bearing of these prospects upon
our markets for securities is perhaps
less discouraging than might appear
at first sight. 1t is true that we can
not calculate upon the usual support
from the foreign markets. Perhaps
all we can expect in that direction is
that the preference given by foreign
investors to American Investments,
amid so much loss on others, will suf-
flee to prevent any additional return
of them home. The speculative spirit
in London and On the continent is toe
completely crushed to allow of any
important export of our stocks TO
those markets at present. What
speculation exists on this side for the
time being must therefore rest upon
its W independent basis. But Is
this a discOuraging feature? On the
contrary Is it not an element OF
strength? Europe has no longer any
floating supply of securities to send
back upon us, which would be an m
portant support to a bull" move
ment; and the fact that we have made
such a clear liquidation of our 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 foreign exchanges.
In view then of the foreign eX-
changes, of the still unbroken pro-
mise of an abundant harvest. and of
the unexpected abundance of money
at this centre after parting with 20
millions of specie, we do not see WHY
strong combinations of men should
find much difficulty in imparting a
a profitable "bull" impulse to Wall
Street later on if they desire to do so.
Fol the moment, however,
the "bears" have a powerful hand,
which calls for cautious buying aud
on the raids only.