The Wichita daily eagle., 1891-11-24
WALL sIREEr uIEMs

NEW YORK, Nov. 25.-Henry cIews, in
| his weekly financial circular, says:
The chief cause of the prevailing inact-
| ivity, however, is TO be found in the
European markets. At present, the finan-
/ cla1 centers OF the continent are exposed to
4 very serious extent of sympathy with a
| variety of unhealthy influences, most of
which have been long in operation and
seem to De now reaching a elimination.
| There, AS In this country, there has been a
great deal of revolution IN the organiza-
| tion of industry, which has resulted in the
| formation of large corporations, for the
most part 1Oated on an inflated capitsliza-
tlon and financed upon loose speculative
| methods. The bourceS are gluJted with
these unstable issues, and in too many
cases the banks even are dangerously
/ loaded up with them and yet dare not
force them to sale, Again, the competition
! for foreign commerce as between tue Euro
Dean states has BEEN increasing in severity
with pro6tless results and with conse-
quent involvements to some of the com
| mercial banks that expose them
30 distrust. Further, the barring sus-
pension and South American affairs
generally have started an industrial and
commercial reaction throughout Europe,
which is attended with declining prices
and with the obstructions to credit that
alway. attend such a state of things
These evils are aggravated by failure of
the crops that threathen to deplete Europe
OF tie gold so greatly needed to buttress
the banks under such adverse conditions
Added to all this, there is a condition of
international relations which threathens
to preclpltat te the great conf ct between the
eastern and western powers which has
been so long impending and has each sue
ceedIng year seemed to become more newt
able. The crop figures of France aud Rus
sla increase this danger, as they afford
tempting opportunity for the Dreibund to
force the wearying disputes to a settle
ment. Moreover. judging from seemingly
authentic outgiyinys, Germany is prepar-
ing herself for serious action in the com
ing spring, although it is possible those
intimations may be intended for diplomat
ic effects rather than to reflect actual pur
poses.
This is the complication of influences
now agitating the European money CEN
ters, and it cannot be denied that the
situation is an unusually grave one, call
ing for the utmost conservatism, calmness
and taking-in of sail throughout Europe
Naturally, under such circumstances,
there is an effort to realize upon large
amounts of the securities of the govern
ments most directly involved in these
dubious prospects. For the last two or
three weeks both Paris and Berlin have
been selling largely of Russian issues, the
mated at 00000,000 and in Germany at
$500, 100000 The bankrupt condition of
Spanish finances is also an element OF
danger. The Bank of Spain has exceeded
the legal limit of its note issued and pro-
poses so further disregard its constitu-
tional restraints; and while confessing its
inability to pay temporary loan from the
Rothschilds of Sl0,000000 is asking for
further advance of SIS 900, 0O0 And yet
France is estimated to be holding some
$500, 900, 0)O of Spanish securities of one
kind or another. Italy has been severely
hurt by its recent panic, and confidence
cannot yet be said to be returning to
Rome. AT Vienna the state of finances is
one of high tension, and nothing is being
accomplished towards restoring confluence
in Portugal.
This Is an unvarnished statement of
the present condition of finances in Europe
at large with a possible super-added great
war within six mouths. A graver situa-
tiOn could hardly be conceived, and he
would be bold fnancier who would say
that these influences can have no bearing
upon the future of American securities
In my judgment, SO long as this state of
things continues, an eye had better be
kept to the winward aud conservative
methods should prevail Still, as the feel
ing in London is at present showing some
improvements, and the Bank of England |
Is showing some gain in its reserves. our |
market for securities is entitled to some |
recovery in prices and increased activity, |
at least for the coming week.