Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-18
Special Weekly Financial Re-
vieW---The Stock Market.
WHAT WHEAT CROP PROMISES.
Quite Probable That the Unfavorabie
Features in the Condition of European
Finances and Commerce Have
Been Exaggerated.

aOe to the selling OF certain securities. At
that time, those factors were so exclusively
occupying the attention of operators that it
appeared probable that they might produce
at least temporary decline; and, with that
view, l suggested selling special stocks
rather than buying. At the same time,
however, the market had another side and
another set of influences, which though, for
the time being, dormant and uninfuential
were yet plainly destined to have favora-
bic influence upon prices sooner or later
and as the market of the past two weeks
seems to have been in some measure moved
by those considerations, it may be proper
to make due reference to them.
The wheat crop now promises to sur
pass both in quantity and quality the ear
her estimates. $4,000 600 to 600 900, 900
bushels being now regarded as not an i'm
possible yield. The special importance at
tached to this fact is that wheat being so
largely an export crop this unprecedented
supply of il gives US the greater power for
controlling the return OF the abnormal ex-
ports Of gold for the last eight months. If
Europe should need double the average
supply of American wheat of the last ten
years, we shall be in 4 position to send it.
This fact cannot reasonably be denied 4
favorable allowance in estimating the prob
abilities of retiuX of gold to the United
States.
It is quite possible that unfavorable
features in the condition of European finan-
ces and commerce have been exaggerated
in the common estimate. 1t always hap
pens, after panic, that tear and apprehen-
sion unduly sway the public mind and make
the after-effectS more serious than they
might or need be. But it is well to remem-
her that two panicS never come in inlmedi-
ATE succession. Immediately after the
crash, recovery sets in, and though it may
proceed slowly and amid timidity and eau
e.. l.. |.
sure Improvement. Extraordinary as have
been some of the aspects of the late Europ-
can panic yet the practiced financiers of
London, Paris and Berlin know how TO
gauge the magnitude ana bearings of the
crisis with infallible eXactnesS; and it is
perhaps quite safe to say that the idea pre-
vailing on this side of the Atlantic, that
those men are trembling with apprehension
at the probability of further great CONNER
cial or financial disasters, is broad miscon-
ception, and one which does not reflect
faVorably on the average information of the
Wall street observer In this connection, it
is worth while to repeat here the following
pregnant words of the governor of the Bank
of Eugland-who is counted the most sd
gacious among the great tinanciers of Eu-
rope-as recently uttered TO u represents
tive Of the New York Herald:
Il wish to say emphatcally that there is
no basis tor the reports that q great finan-
cial disaster is impending in Great Britain.
1t Is quite untrue that any important bank
ing house is in danger save one, and the
affairs of that one are now in hand. As for
the chartered banks they are az sound, so
far as / know. There have been great
losses. it is true, but these losses have been
spread over large numbers of persons, and.
as rule, the losses have been already met
and paid leaving the losers poorer. but
still solvent. There will be few failures
of course, but none Of any Importance
none that could affect the money markets.
The result of the great losses in South
America and elsewhere has been to bring
people to their senses. Speculation has
completely stopped. The difference be-
tween the wildness of last year and the de-
preston of this is the difference between
the convex and the cOncave-where there
was hill there is now al hole. People are
poorer and wiser, that is the truth of the
matter. The talk about n coming panic is
unfounded. AS | said before, the losses
are already known, and in most cases al
ready paid. One good result of the syndi-
Gates, trust companies and the like is TO
divide the losses among a multitude, and so
prevent crashes. / have been ayerse to
making any declaration on the situation,
because of my official position as head of
the Bank of England. But | consent be
cause | am aware of the strong efforts that
hive Uttll III III VI lllC SoL-
tinent TO create q panic without any
excuse"
Mr. Lidderdale also stated, in respect to
the Barring Bros, that their affairs were
found to be in an entirely solvent condition
a mere matter of getting time, ''and that, be-
yond a special liability of $1,000, 600 to the
Bank OF England (which in no way con-
Germs the public, . the estate now owes less
than $500. 900. The governor further said
that 1.-The only overshadowing danger in
the recent crisis was the ability of Rus
STA to draw from foreign banks large
amounts of gold. and that issue having been
met. Russia could not bring ABOUT a crisis
even if she wished These explanations
and opinions from the highest possible
authority carry large weight of invalua-
BILE assurance. They throw upon the dis
trust felt quite extensively on this side the
Atlantic Just the kind of light the situation
calls for-the opinions of the one man who
knows with more breadth and detail than
any other authority the true facts of the
European position. In the light of these
assurances, we are justified in dismissing
from current estimates Of the future at
least of all elements of special danger, all
apprehensions of impending catastrophe.
We must expect the dullness, caution, con-
traction of credit, commercial reaction and
decline in trade values throughout Europe
that always and necessarily follow great
crisis; and to say that is to say that we
NAV not calculate upon the usual foreign
demand for our securities, nor upon any
speculative activity in them, either at Lon
don or on the Continental bourses. The
tone of Governor Undertakes remarks
does not lend any even lnferential support
to the idea cherished here that any special
effort is likely to be made to prevent the
refiux of gold to this country, should the
natural course of our exchanges call for it,
Rather. with the absence of any special i'm
pending dangers, the elimination of Russia
from the situation, and the low rates of
money and absence of speculation, it would
seem to be to the interest of European
bankers to offer no obstacle to the return of
gold to the point where it is likely to be
most naturally and urgently needed and
where its use will be most beneficial to the
world at large.
1t seems proper to add word as to the
prospects of our home money. We have
nova week or two later than usual
reached the turning point in the domestic
exchanges and money, has begun to. flow
westward. Although the amount of the re-
serves of the New York banks is double
what II was at the same time last year, vet
that may not prevent our local cash re-
sources being drawn down to Z point
threatening stringency. That is matter,
however. that can only be determined By
experience. 1t is not to be overlooked in
this connection that the active circulation
of the country has increased some SO. 000.-
COO during the last twelve months, which.
in the absence of any increase in the trade
of the country, should pass for an element
of some importance in estimating the pros
poets of the money market.
f,r-r Al