Telegram-herald., 1891-06-15
VERY FAVORABLE WEEK
60 il is Considered by Henry
CieWs & Co.
AZ ABUNDANT HARVEST At HONE
1ss~ther With . Scarcity of Cereals
Abroad Makes American Prospects
Especially Brisht-The Hed-
sFai Treasury 5sfe-

NEW YORK. June l4-Events during
the week were mostly of a favorable
character. The situation abroad, which
has been the chief source OF anxiety,
shows further satisfactory improve
Hent- The best evidence of TINS was
the decline in gold shipments and the
rise IN the Bank of England's proper
ton of reserve Liabilities from A 50 per
cent. 10 1905 per cent. in a week. On
May :, or little over a month ago. the
ratio was down 10 $3.50 per cent; so
that Il can be seen how successful tins
institution has been IN strengthening
Its reserves. The bank now holds
about e, 200. 600 gold mor= than tthls
time IN 1890. and Is IN a much better
position 60 meet ali probable demands
than Was thought possible a few weeks
ago. Whatever sums may he with
drawn by Russia, they Will shortly be
dIs6ursed again IN debt payments. The
hank rate II still held at 4 per cent. but
Iii open market the rate for money Is
2fa2A per cent. suggesting a further
decline IN the Otflcial rate. The favor
able progress OF the Barring liquidation
also exerted good effect; and, alto
getheT. the outlook at the worlds
nnanclal center IS certainly much
brighter than IN March or Apnl. Paris
aud Berlin are still in somewhat
straitened circumstances, but less tell
son IS reported there as result of I'M
provement IN London.
IL Is upon the home situation, how
ever. 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 comparison with
other investments. IS certain TO assert
itself and restore them into preference
Rgain. III Americans are the best
securities on which to realize IN times
OF depression, they must necessarily he
the best 10 buy when the change for
the better sets IN. The all-lmportant
factor in determining future values of
stocks IS the crop situation. Happily,
this Is IN our favor, as frequently
pointed out, and as the season advances
evidences of improvement seem to
multiply. The certainty of al ahund-
ant harvest at home and a deficient
one abroad Increases each day. Our
Crop Bureau states that the increase in
Winter wheat acreage is III D per cent,
and IN Spring wheat 3.4 per cent.
while the condition of both stands at
the high average of $50 per
cent. and 92.o per cent, re-
spcctlvely. To more fairly under
stand the effect of good crops upon
business and railroad interests, 1t
should be remembered that ut present
we are suffering 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 con-
tlnues easy. and promises TO so continue
until the crop movement; the present
quietness OF trade tending to increase
supplies. More attention has been
gwen to Secretary Fosters action IN
extending the Al rer 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 those bonds at II per cent.
Everyone understands also that such
n low rate of interest "a possible only
because of the advantages of holding
these bonds. other than their safety and
llt UiAD VI tbt
Western banks, who hold the bulk of
outstanding AS, may be willing to
accept lower rate OF interest
than Eastern banks, the higher
money rates of the west rendering cir
culatlon more profitable IN that section
than here; but, as just said, more inn
portauce attaches to this element than
u 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 movements begin, then eau
ton Is necessary. II IL likely that,
through sales of produce and possibly
securities. We Will regain much of the
gold spared. The bank reserves are IN
good shape, and itneed not be forgotten
that each year the West shows itself
less and less dependent upon the East
for its supplies of money. and the CON-
ing fall may prove no exception. We
do not look for any radical or imms-
date change IN the stock market, but
the present position of affairs certainly
justlfies taking more hopeful opinion
regarding the future; and good stocks
at present prices ought to yield profit
To buyers with reasonable expectations.
HENRY CLEws.