The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-10-31
FINANCIAL REVIEW.
Henry clews' Weekly Letter on
tho Money Situation.
THE HEALTHY TONE OF BUSINESS
Changes in the Money Marlset-.Gos-
sip Concerning the Forthcoming
Monetary Conrcrcnce-.Exports and
Imports.
sr,cloI Correspondent. Of he intelligence.

lacks any special element oEspccula-
ton. Many factors in the condition OF
business at large are favorable toa high
or range ofprices, which had been very
generally expected to appear at this
stage OF tho season; but counter factors
have appeared which are holding spec
nlativo tendencies i'll check for the
time being. There is, however, 4 very
healthy dcmand Tor railroad mortgages
and prilae dividend paying shares, and
that fact encourages the bull" owners
OF stocks to eticG 10 their holdings.
Tho hardening tendency OF the money
markets, here and IN Europe, naturally
holds speculative trSnsactions in check,
the more so as the diff has run farther
fhan has been generally expected. We
have been assured by Chicago banking
authorities tllat that money centre has
so lar gained control OF interior finances
that the great grain states would 10
LONGER in dependant on Now York
funds for moving the crops. Some PEG.
pie have believed this boast, aud are
consequently taken by surprise at tho
present condition OF our banks; but tho
lact has been that, since the and Of
July. the strplus receives OF tho clear
inehOr banks have fallen from TWEEN
ty.lour millions to zero, and tina. twen-
ty millions Of moncy has been sent
from New York 10 the interior This
is Il change so sweeping and so CneS-
pectGd that il necessarily becomes Il
serious element in Wall street opera
TORS, us its effects are apparent in
stringency and unusually high rates for
loans and discounts
a similar change has appeared in the
European money markets. Not only
has the Bank OF England advanced its
rate OF discount from . to per cent,
but the London open market has since
that change shown still hardening
tendency in the rate OF money. At the
other foreign centres, like tendency
is apparent. The notable, not to say
ominous, feature at all points is the
disposition OF the great banks to Keep
their gold and get more. This inclina-
ton NAV be attributed in part to the
continuous purchases OF Austro-lIun-
gary, and to the boarding OF the Rus
sian government for some inscrutable
purpose; but it is no doubt also stimu-
lated by the position OF the silver ques-
ton, winch is brought into unusal
prominence by the forthcoming none
tary conference ut Brussels. The very
fact OF the authorative discussion OF the
question is calculated to create scnsi-
tiveness, if not Il certain degree OF pre-
caution. Financiers have to
provide against the worst possible con-
tingencies in any given situation, and
European bankers are asking, "What if
the conference fails and all hope OF re-
storing silver has to be abandoned?"
As such a result would involve still
further serious degradation of silver,
the possibility OF its causing rush
among the great banks for gold, in or
der to put themselves more firmly on
the single standard basis. is too OBJ.
vious to be safely disregarded. Besides
this, it is not improbable that some OF
the nations may deem it to their advan-
tave to 20 into the conference backed by
the prestige of being holders of ample
stocks OF gold. In brief, the whole situa-
ton arising out OF the fall in silver is
one calculated to bring about precau-
tionary boarding OF gold; and so long
as such policy is in force it must tend
10 disturb foreign exchanges every
where and to derange the regular
course OF the worlds money markets.
To us this is matter OF special
importance; not only because our large
gold stock is the most accessible source
OF supply to foreign hoarders, but also
because our foreign trade is now taking
a course that suggests some probability
OF a more or less important adverse in
ternational balance. Contrary to what
has been expected as the result OF the
new tariff, our exports are declining
while our imports are increasing, For
the month OF September, our imports
we're Sl1 100000 above those of last
yeur; dnd Tor the three months July,
August and September the increase was
S27, 100000; while the exports for Sep
TENDER show decrease of $50, 000, 900.
Thus the September movement is $751;
50O,e00 less favorable to US than was
that OF year ago. The only feature OF
relief against this adverse tendency is
the fact that speculation seems to be
reviving in London and that some liber-
al amounts OF securities are being sent
from here to that market. 1t is also in
our favor that foreign bankers at this
centre appear to have liberal balances
for use on time loans.
But while tho foregoing factors de-
mand attention and are discouraging to
large operations at the moment, yet it
is to be remembered that We arc now
in stage OF the year when the pressure
on the money market is usually at its
maximum. Tho western demand for
CURRENCY may be expected to decline
from this time forward, and in another
month we shall probably see the
reserves STEADILY increasing.
While, in view OF the factors above
referred to, it may be necessary 10 slack
en- pace somewhat for time in stock
operations, yet the general situation is
strong one. The business OF the
country at large il sound and active
and the nation is probably accumulat-
ing solid wealth faster than ever be-
fore; the largencss Of our current im-
ports oven is evidence OF that The
bank clearings show the increasing
activity OF business; tho crops are turn
ing out consid erably better thar has
been estimated and the farmers arc
making money and paying off their
debts. Tho gross earnings Of the rail-
roads show steady increases OF earnings
and the grain roads are blocked with
freight beyond the capacity OF their
cars, while the net earnings exhibit n
gratifying increase over those OF last
year; and the quantity Of grain coming
10 seaboard far exceeds all precedent,
which is evidence OF extraordinary in
terror stocks OF produce. All these are
circumstances bearing iavorably upon
AZ, ,.oi,,,, of roilrnod invont-,nants and