New-York tribune., 1891-12-31
THE FINANCIAL YEAR.
GENERAL GLOOM FOLLOWED BY REMARK
ABLE PROSPERITY

GREAT CROPS THE KEY-RAILRoAD EARNINGS
swELLED-spLENDID TREASURY MAN
AGEMENT AND ITS RE5ULTs.
The year 1891 opened under circumstances OF
peculiar depression. The great disaster OF tne
Barings had shaken confidence throughout the
financial world. The farmers Of the Northwest
had lost grain alone enough 10 have brought theHi
500, 600 900, and from scarcity of food had oeen
forced to sell at sacrifice millions OF catte,
sheep and swine. Extraordinary elections had
resulted in such Democratic majoritaes that COM
pete reversal Of the economic and industrial pocy
OF the Government threatened. and almost
every day brought tidings Of enterprises aDah-
doned or deferred, because Of this apprehension
The change in single year seems almost magical
The causes reach well nigh round the world,
but for most of them the seed had been sown and
the maturing had already begun before the year
ls9l arrived.
Early in the year came the closing of many
furnaces in the Mahoning and Shenango valleys.
in Alabama and elsewhere, and shortly after the
great strike of coke workers at COnnellsvile,
which forced many more furnaces to close. The
output of iron was thus reduced more than
l. 90, 900 tons for the first half Of the year, and
from ls4 900 tons weekly in December to 49,
900 in April nearly 40 per cent. Another cause
of serious disorder the struggle for eight
hours, which began at Philadelphia in January,
and had extended % most Northern cities before
the end of May, preventing the erection OF
thousands of buildings, and curtailing the demand
for materials. Another was the collapse OF the
land booms which had created fictitious valuations
and a mountain of debt at the West and South.
Passionate and foolish legislation, and attempted
legislation in Western and Southern States against
creditors and corporations increased the dstrust'
Then came monetary agitation and uncertainty
the Senate passed free-cOinage bill in January,
and this. with financial troubles abroad, started
in February an outgo of gold, which was greatly
intensified by the demands of the Russian uoV-
ernment in April and May, and which dld no'
cease until August. when the net Exports III eN
months had been over $73,oOO,oOo.
Financial confidence was further disturbed oy
the sudden death of Secretary Window In January
and the fear that his successor might not prove
eouallv able 70 meet the emergencies then visibly
annroaching When a premium was placed on
gold bars early in March the Street inferred that
there was to be an unwise attempt 10 arrest
natural transfers, and it was not until the latter
mart of April, when charges that the Treasury
was bankrupt elected most vigorous and con-
vincinp statements from Secretary Foster, that
his ability to master the situation was appreciated
His call for the 4 1-2 per cent bonds IN June
completed the restoration of confidence, and by
insuring needed aid to the money markets at the
emergency in September proved the turning point
of the financial year.
Under all these depressing influences trade In
the first half of 1891 was surprisingly large, ana
exhibited most impressivey the vast industrial
mower of the country. In the first four months
of tbe wear exchanges through clearing houses
outside New-York were not per cent smaller than
in 1890 and though in May the decrease was
10 Der cent and in June per cent IL had
become certain by that time that great crops
were about to restore prosperity speedily, ana
meanwhile the ability of the country to send
S73, 900, 900 gold abroad in six months without
any disturbance powerfully impressed foreign
capitalists.
Foolish speculation, on the theory that wheat
famine in June was inevitable, had hoisted the
nr;ce SO far in March and April that exports were
arrested. and the country was obliged to carry
over more than 2o,OOO,O0O bushels which might
have been marketed. The collapse came with
assurance of good crops in June, and grain at once
negan to 90 forward largely. When western legis-
latures had adjourned without doing the mischief
feared. and the building strikes and coke strikes
had ceased in June, and the closing OF many
furnaces for months had cleared away the surplus
iron prematurely produced in 1890, the country
entered upon the second half OF the year WIN
singularly favorable circumstances.
The kew of the situation was the enormous crop
of wheat and the great need for it abroad. BY
the middle of July the Farmers Alliance tried by
circulars to stop the selling Of wheat, but failed
SO completely that the movement was greater than
ever About the middle of August the RUSSIAN
prohibition of rye exports was used to create
rise of 1s cents in two weeks in the price OF
wheat. but as this stopped EXPORTS the specula-
tion ouickly broke down. It was renewed later
in the year, when wheat exports were actually
prohibited by Russia, but with even less success,
and the outgo of grain has happily escaped sup
preston by gambling influences thus far. Al
ready larger quantity has gone abroad than
in most full years, and yet the movement from
the farms throughout the latter half of the year
has been so extraordinary that famine is
the chief complaint throughout the West, and
all eastbound railroads are blocked with freight.
Wien the crops began to move in such vast
quantities it was feared that Eastern reserves,
depleted by the exports of gold might not be able
to meet Western demands. For time the dam
ger seemed real and near, but the redemption in
| September of all the l-2 per cent bonds not
extended at per cent enabled Secretary Foster
to strengthen the market largely with Treasury
reserves, 80 that delay in receiving gold from
| Europe caused no trouble. Strong efforts were
made by foreign banks TO retain their gold, but
the advance in rates by the Bank of England
| in October had little effect The silver act of
last year had meanwhile enabled the treasury 10
| add 81, 200, 900 each month to the stock Of
| currency by issues against silver purchased
| and against trade dollars recoined, and
Secretary Foster had wisely utilized large amount
Of the formerly idle fractional silver and part Of
| the old deposits in banks BY these means. he
was enabled to add largely to the circulation out