The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-11-25

Transactions Amount to Only
One Third the Volume Of
Active Business.
Complication of Influences Now AgitatinE
European Money Centsrs-Finances
of Foreign Countries.

New York, Nov. A~.-tSpecial. 1.-The last
circular issued blythe banking house of Henry
Clews d Co., II, Is, and Is Broad street and
35 Wall street, says: During the greater
part of the past week Wall street relapsed
into its old s%tagnancy; the partial revival
of the previous week having proved to be
but a transient room ripple upon the dead
calm Of speculation. Neither the unex-
pectedly liberal gain in the bank reserves,
nor the equally unexp ected strength shown
in the Bank of England's statement of last
week, nor the gain of sl9 per cent in the
October gross earning of the railroads,
have had any important effect upon the
market, and the transactions at the stock
exchange have shrunk to about one-third
the volume of a really active business.
There has been a fair investors demand
for bonds and frst-clsss dividend-paying
stocks, which indicates that, whatever may
be said about the state of the country at
large, the accumulation OF wealth Is going
on at about the usual rate.
This condition of the market seems sim
gularly inconsistent with the large hopes
legitimately based upon the commercial
stimulus that must attend the distribution
of our extraordinary crops and the exporta-
ton of probably en- unprecedented quantity
of food products. The insensibility of the
stock market to these inspiring prospects is
no doubt due, in some measure, to a
quietsr condition of the general trade of
the country than has been expected under
the circumstances of a prosperous year for
the farmers. The measure of this quiet
NAV be inferred from the fact that the cur
rent bank clearings, at the seven principal
cities of the union, show a decrease of over
10 per cent. as compared with q year age.
10 account for this disappointing state of
that it is only twelve months
since we were in a condition
of financial panic, which has been followed
by a reaction affecting business and values
throughout the entire country. A transition
from panic to a high boom within such a
brief period il too much for prudent men
to calculate upon.
The chief cause of the prevailing i%nactiv-
European markets. At present, the
financial centere of the continent are
exposed to a very serious extent of SYM
huences, most of which have been long in
operation and seem to be now reaching a
elimination. There. as in this country.
there has been a great deal of revolution
in the organization of industry; which has
resulted in the formation of large corpora
tions, for tho most part hoated on an in
1atod capitalization and financed upon
loose speculative methods. The bourses
are glutted with these unstable issues, ard
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 between
tbs European states has been increasing in
severity, with pro6tless results and with
consequent involvemsnts to some of the
commercial banks that expose them to
distrust. Further, the Barring suspen-
sion and South American affairs gener-
ally have started an industrial and com
mereial reaction throughout Europe, which
10 attended with declining prices and with
the distinctions to credit that always at
tend such a ltate of things. These evils are
aggravated by q failure of tho crops that
threatens to deplete Europe OF the gold 80
greatly needed to buttrsss the banks under
such adverse conditions. Added to all this.
there is a condition of international rela-
tions which threatens TO precipitate the
great conflict between the eastern and west
srn powers which has been so long impend-
ing and has each succeeding year seemed to
become more inevitable. The crop failures
of France and Russia increase this danger,
as they afford a tempting opportunity for
the driebund to force the wearying disputes
to q settlement. Moreover, judging from
seemingly authentic outgivings, Germany
is preparing herself for serious action in
the coming spring; although it id possible
those intimations may be intended for
actual purposes.
This is the complication of influences
now agitating the Europsan money %centsrs;
and it cannot be denied that the situation
is an unusually grave one, calling for the
utmost conservatism, oalmnsas and taking
IN af gail fhr0rnhnuk ErrorA Np,lI,
under such circumstances. there is an effort
80 realize upon large amounts of the securi-
ties OF the governments most directly in
yolved in these dubious prospects. For the
last two or three weeks, both Paris and
Berlin have besn selling largely of Russian
ia estimated at $500. 600, 600 aud in Germany
at $780, 600. 600. The bankrupt condition
OF Spanish finances is also an element of
The Bank of Spain has exceeded
the legal limit of its note issues and pro-
poses to further disregard it's constitutional
ity to pay a temporary loan from the
Rothschilds of $40, 600, 900 is asking for a
further advance of $4,000 900. And vet
France is estimated to be holding some
$500, OOO,O GOO of Spanish securities Of Que kind
or another. Italy has been severely hurt BY
Its recent panic, and confidence cannot yet
BE- said to be returning in Rome. At Vienna
tho state OF finances is one Of high tension,
and nothing IL being accomplished towards
confidence in Portugal.
This is an unvarnished statement of the
condition of finances in Europe at
with a possible super-added great
within six months. A gra,er situation
could hardly be conceived, and he would
be a bold fnanoier who would say that
these influences can have no bearing upon
the future of American securities. In nv
judgment, so long as this state of things
continues, an eye had better be kept TO tho
windward and conservative methods should
prevail. Still az the feeling in London is
at present showing some Improvement and
the bank of England ID showing some gain
in its reserves, our market for securities are
sntitled to some recovery in prices and in
activity, at least for the coming
week.