Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-16
FINANCIAL CENTER.
THE OUTLOOK BRIGHTER THAN
IN MARCH OR APRIL.
Crop Situation the All-Importznt Factor
In Determining Future Value of stocks.
The Treasury All Right.

New YORK. June 13-EventS during the
week were mostly of favorable character.
The situation abroad, which has been the
chief source of anxiety, shows further sat
isfactory improvement. The best evidence
| Of this was the decline in gold shipments
and the rise in the Bank of England's pro
portion of reserve to liabilities from "A. 81
per cent to 46 06 per cent in a week On
May Z, or little over month ago, the ratio
was down to 80. 35 per cent; so that it can
be seen how successful this institution has
Deen in Strengthening its reserves. The
bank now holds about e5, 900, 600 gold more
than at this time in 1890, and is in i much
better position to meet all probable demands
than was thought possible few weeks ago.
STA, they will shortly be diSbursed again in
debt payments. The bank rate is still held
at per cent, but in open market the rate
for money is 2(321s per cent; suggesting a
further decline in the official rate. Another
indication of reviving confidence in London
was the failure of the joint stock banks to
support the Bank of England in maintain
ing discount rates. This movement in
cluded several of the leading banks of Great
Britain, but was complete failure, for the
simple reason that borrowers had no diff
Guilty in finding all necessary accommoda-
lions elsewhere at lower rates. The favor
able progress of the Barring liquidation also
exerted good effect; and, altogether, the
outlook at the worlds financial center is
certainly much brighter than in March or
April. Paris and Berlin are still in some
what straitened circumstances, but less ten
sion is naturally reported there as result
of Improvement in London.
1t is upon the home situation, however.
that we chiefly depend regarding the future.
Europe may, if she wishes, temporarily
lessen her holdings of American stocks, but
their superior intrinsic value, in COMPARE
son with other investments, is certain to
assert itself and restore them into prefer
ence again. If Americans are the best Sc
curities on which to realize in times of de-
preston, they must necessarily be the best
to buy when the change for the better sets
in. The all-important factor in determin-
ing future values of stocks is the crop sit
uation. Happily, this is in our favor, as
frequently pointed out, and as the season
advances evidences of Improvement seem
to multiply. The certainty of an abundant
harvest at home and deficient one abroad
increases each day. Our crop bureau states
that the increase in winter wheat acreage is
lis per cent, and In spring wheat, g. per
cent; while the condition of both stands az
the high average of 96.6 per cent and 92.6
per cent, respectively. To more fairly I'M
derstand the effect of good crops upon bus
mess and railroad interests, it should be
ing from the short crops of 1890. In spite
OF this drawback, the declines in earnings
are small and many roads show unexpected
gains, when the unfavorable conditions are
taken into consideration. Money continues
easy, and promises to so continue until the
crop movement; the present quietness of
trade tending to increase supplies More
attention has been given to Secretary Eos
ter's action in extending the AZ per cent
bonds than the question deserves. / do not
believe he will attempt any step that means
contraction of the currency, for that would
be less popular than success in extending
these bonds at Il per cent. Everyone I'M
derstands, also, that such a low rate
of interest is possible only be-
cause of the advantages of holding
these bonds, other than their safety and
the high credit of the government West
ern banks, who hold the bulk of outstand-
ing AIS, may be willing to accept loweA
rate of interest than Eastern banks, the
higher money rates of the West rendering
circulation more profitable in that section
than here; but, as just said, more impor-
lance has been attached to this element
than it deserves. The treasury is, upon
Secretary Fosters statements, able to meet
all obligations. and the monetary outlook is
clear until the fall. When the crop move
ment begins, then caution will be necessary.
It is likely that, through sales of produce
and possibly securities, we shall regain
much of the gold recently spared. The
bank reserves are in good yhape and it
need not be forgotten that each wear the
West shows itself less and less dependent
upon the East for its supplies of money.
and the coming fall may prove no exception.
We do not look for any radical or imme-
date change in the stock market, but the
present position of affairs certainly justi-
ties taking more hopeful opinion regard
ing the future, and good stocks at present
prices ought to yield profit to buyers with