Daily tobacco leaf-chronicle. (Clarksville, Tenn.) 1890-1895, 1891-01-03
BUSINESS YEAR.
Exciting and Eventtul Was the
One Just Closed.
Review of the Financial Condi-
tions and Doings

with '37, '57, '73 and '8i-Conditions
Improved, Though Business Activity is
Not to BE Expected for Some Time.
NEW YORK, Jan 3.-Iho year Just
closed has been a most exciting and
eyentful one in financial and business
circles. The year 1890 will rank in
financial history with 81, %, 10 and
'S4 The year openeli in quiet ana un-
eventful way, General business was
only moderately active, money easy and
the stock and bond markets were quiet,
Prices Of railroad securities seemed low
in comparison with the heavy increases
in earnings reported and the general
prosperity of the country. They Were
however, the result Of an upward move
ment, which had continued without
much setback since the spring Of 49,
Early in the spring reports from
Washington seemed to indicate the
probability that silver iniatiOnists
would be prominent in legislation.
Everybody was full Of fear until Sena-
tors Sherman and Jones killed the in
tationists with a compromise silver
bill. Then the white metal began a
boom, in which everything moved up
ward with it. Prices of active stocks
advanced from ten to fifteen points, and
transactions on the Stock Exchange eX-
tended to 500,00 shares per day. In the
latter part of Nav the rise eliminated,
About this time unpleasant rumors
began to come over from England. The
wiser spirits of the financial world
seemed to realize for the first time that
England and Germany had been sfecu-
lating too much in securities, particu-
larly those Of South America and South
Africa The situation in the Argentine
began to assume a serious aspect, the
premium on gold rose, and it seemed in
evitable that the Englishmen must look
out for their ventures there and send
good money after bad,
New disclosures were constantly made
by the COrruptne5 e5sand prodlgallty OF the
Argentine government 1t was under
stood at this time that Barring Brothers
had contracted to loan "a ,0O0,O 600 to the
Argentine government. The inevitable
result of this was a drain upon the re-
sourses of the Bank of England. This
caused an advance in the Bank Of Eng
lands exchange rate. This reduced our
exchange rates on London to such low
figures that movement Of gold from
this country to England began in the
early summer, which did not end until
nearly $1O,OOO,000 in gold hal left us.
Money began to work closer, and in
August there We're several periods of
extreme stringency, money advancing
as high as ] per cent. per day and inter
est, to about 1856 per cent The whole
country was now alarmed over the
threatened stringency Of money and
steps were taken by the secretary of the
treasury to release some OF the large
surplus which had accumulated during
the summer, partially III consequence OF
the heavier imports due to the two Nc
Kinley bills, importers increasing their
stocks in order to escape the provisions
of the new bills
A number Of circulars were issued by
the treasury department offering to pur-
chase four-and-a-half per cent bonds at
par and accumulated interest to Sep
tember. 1891, the date OF maturity, to
purchase four per cents and to prepay
interest ON the four per cents for one
year. The result of these purchases
was the payment by the treasury OF
over $50. 600, Geo in addition to heavy
payments of of pensions.
Still the stringency continued. Banks
more unwilling to loan out money on
time. The regular fall demand for
money in the west and south to move
the crops came to aggravate the situa-
ton. Although it was not generally
known at the time. over-Cautious per-
sons were then lRarding their gold fear
ing that the increased coinage Of silver
would result in a premium ON gold.
This was the secret of the mysterious
absorption of money during the fall.
Some persons were inclined to attrlb-
ute it to manipulation on the part of
those who had been wise enough to
foresee events. and had sold stocks
short. but facts did not seem to Justify
this. The growing uueaslnes5 too, was
causing a steady contraction OF credit,
which was increasing the demand for
csah faster than were the calls for
money TO move the crops. Meantime,
to add to the general gloom, all tho
western railroads began to report de-
creased earnings. This was due to the
fact that the earnings of 80, with
which they were compared, were par
ticularly large, and also to the fact that
the decreased crops of the present year,
caused diminution of tonnage. Mean
time. general business throughout the
country had become very active.
Since the beginning OF the new year
business had been fairly good in nearly
all branches. 1t had shared in the eX-
hilaration of the financial boom Of the
spring. and had been unnaturally stlmu-
lated by the doubts and fears and hopes
created bv the discussion of the tariff
bill. The bill advanced the tariff on
most of the more important imports eX-
cept raw sugar, Hence there was q
rush to get in goods before the bill
should 60 into effect. The stringent
provisions of the original bill with re-
gard to the time for taking goods out Of
bond in order to escape the new duties
aggravated very much the feeling Cf
uneasiness.
Finally, in response to appeals from
leading business men throughout the
country, the law was changed to the
! following effect: Goods entered before
oct. / may be withdrawn before Feb. |,
according to the provisions Of the old
| tariff law. If, however the new law
puts on the free list goods dutiable mn
/ der the old law these goods can be
withdrawn free under the new law.
/ While money was becoming tighter,
| business of all kinds was hummlng.
| This increase of business activity de-
/ manded more money.
Consequently the situation became
/ daily more strained. Meantime
/ Europe had been steadily peddling ont
! American securities. and money rates
/ in London and Berlin We're high Prices
on our stock Exchange declined faster
and faster. The stubbornness with
which those who were carrying stocks
/ in the early part Of the decline had held
on gave way to despair which caused
them to sell out at wholesale. A very