Los Angeles herald., 1891-09-03
A CONSPIRACY WHICH MIsCARRIED.

A CONSPIRACY WHICH MISCARRIED.
The people of the United States are
facing just now very peculiar state OF
things. The HERALD outlined the at
tempt to create an artificial panic in
Wall street, and stated that it would
paid some attention to the weekly cir
culsrs of Henry Clews, because those
documents play the Office of the snake
fly to the snake, and, to that extent,
are valuable. Early in the summer the
Clews circular and the leading financial
articles of the New York papers began
to take on an alarmist tone. 1t was not
then known that the cereal crops OF the
United States would be the largest on
record, and hat those OF Europe would
be unpreced entedly small. Everything
was supposed to be in a normal state as
to crops both in the new world and the
old. Large sums of gold had been ex-
ported to Europe, much of it loaned by
American capitalists for effect; and it
was done as the first step towards pro-
ducing the artificial panic which had
been arranged for. The next step in the
programme was to raise howl about
an honest dollar, and the disas-
ter which wo uld follow the free
coinage of silver. The reserves of cur
Iency in the New York banks surpassed
allprevious records. They were accumu
lated ostensibly with the idea OF pre-
pairing for the coming panic, but in re-
alitv to precipitate one by making
money scarce. When it should super
vene, the idea was to raise great yawp
about the wickedness of the silver men,
and the gold bugs were to emerge tri-
umphantly.
Alas for these we'll laid plans The
catch phrases, ''the best laid plans of
men and mice gang aft aglee," and
imam proposes but God disposes," were
realized for the thousandth time. The
fact became patent to the most opaque
intelligence that this year the whole
world must pay tribute to the United
States, and several hundred million dol
lars in gold must be paid to this coun-
try to adjust the balance of exchanges
with the outside world. The financial
circulars and the orators of the Republi-
can party, including Mckinley and
President Harrison, were loaded
up in consonance with this pro-
gramme. Amongst the rest, Clews'
financial circular of August Sth emitte
the preliminary panic yawp, and it was
followed up in the circular of the 18th
in similar vein, only more so. But
presto change. The regular circular of
that date was followed up by supple
mental one, which took it all back.
Something had dropped meanwhile;
and this erolite from clear sky took
the form Of the Russian ukase prohibit
ing the expectation OF rye from the
dominions of the czar. 1t was found
that Europe needed 32O, 900, 900 bushels
of wheat, and that the United States
could spare at least 25O,0OO,0OO bushels
of that amount, and at the highest
prices which have been known since
1879.
And now read Clews's circular of
August 10Th.
The money market affords, ON the
whole an encouraging outlook. The
reserves of the banks have at last begun
to decline freely under the drain of
money to the interior, and large as the
surplus is, as compared with one or two
years ago, yet it is necessary for the
Inw -
reinforced with cash from some outside
source. Some amount may be expected
after September 1st from the redemp-
tion of United States AZ per cents
about twenty-one millions of which re-
main to be extended or redeemed; but
what sum will be redeemed the event
can only show. The main dependence
of the banks must be upon the return of
gold from Europe, which seems inevita-
ble, the only open question being that
of amount. Apart from the effects of
the prospective extraordinary exports of
wheat, it deserves notice that the ma
tlonal exports are showing large in
crease-those for July being $500, 900
above the same month of 1890
whilst the July imports fall $11,-
100000 below those of last year.
The securities movement with
London has, within the last few days,
changed from one of return to that of
export; and the rates for sterling ex-
change show a weakening tendency in
sympathy. 1t may be few weeks be-
fore specie imports set in; but the pros
pective movement ie near enough to
prevent, in conjunction with the treas
ury payments for redeemed 416s, any
important stringency in the local loan
market.
Unfortunately for Harrison and Nc
Kinley, and the rag. tag and bobtail Of