Los Angeles herald., 1891-05-15
A BRIGHT OUTLOOK.

In one of Dickens's novels Mr.. Mark
Tapley was noted for the extremely
cheerful views he took of matters and
things. He had a remarkable knack of
coming out strong under difficulties.
The last financial circular of Henry
Failures are recorded all over the United
States in almost unprecedented volume,
banks are breaking on every hand,
$4,000, 900 in gold had been exported to
Europe during the four weeks prior to
the date of the circular, the 9th of May,
and yet Clews & Co. say ''the bull cam
plign has now had three weeks of trial. :"
The fact that this unprecedented drain
of gold has not depressed securities is
cited, and it is accepted as another
"evidenceo of the intrinsic strength OF the
market that not only has the upward
movement had little or no support from
"the London and continental markets,
"but it has actually had to contend with
"the return of securities from those
SOURCES. " The circular notes the pos
sibility of a crisis in European money
centers which may result in the further
return of American securities and
further drain of gold, and looks to this
cause to hold the market in check.
However, the Messrs. Clews dismiss
their qualifications, and return to their
sanguine mood in the following re-as-
suring passage, which seems to have
sound sense behind it:
A few weeks later, not only will the
European demand for gold have been
satisfied, but the situation arising from
the results of the worlds harvests will
necessitate material refux of gold to
this country. The recent cold wave has
come too late to cause any appreciable
injury to either the winter or spring
crops of wheat. The latest advices from
the other leading wheat growing coun-
tries afford little improvement on the
unfavorable prospects of their harvest;
and we have, therefore, still
reasonable promise of an extra
ordinary export of this cereal
at much above average prices. This
alone ls sufficient to insure a course of
the foreign exchanges that will contrib
ute largely towards meeting the interior
demand for currency during the fall
months. In the meantime, the reserves
of the New York banks are not suffering
any actual reduction, the Withdrawals
of gold for export, since the beginning
of April, having been set off by the re-
turn of currency from the interior and
the exchanges with the sub-treasury.
Whilst, therefore, there may be reason
for moderation in stock operations for
the moment, there is none for appre-
hension as to the future; on the con-
trary, any favorable turn in the
European situation or in our foreign
exchanges would be accepted as sufli-
cient reason for the resumption of ac-
tivity in the ''bull' campaign.
The damaged condition of the Eu-
ropean crops is a thing in which the
California farmer is deeply interested.
1t is an ill-wind that blows nobody any
good. The crops in this state never
looked better than now, and good prices
seem to be assured. Our horticulturists
will also profit by the extensive damage
which the late frosts have done to the
fruit crops of the eastern states. 1t does
not require very much effort of the
imagination to figure out for California
at least golden year. The prospect on
every hand, including the mineral and
railway outlook could not well be better,
IN the southern counties particularly.