The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-03-09
THE FINANCIAL REVIEW
Rumors of Gigantic Railroad Deals
Upon an Unprecedented Scale
Are Afloat.
Many Natural Conditions O
Strength, ana Also Features
Demanding Prudence.
Tho Silver Question Becoming an Intluen-
tisl Factor la Wall s.reet-Heavy
$3.50" Return Of Securities.

New YORK, March %s.-[spacial. l-Th'
latest circular issued by the banking hous
of Henry Clews Il Co., IL, Is and 10 Brost
street, and 81 Wall street, SAYS; The stool
market is flooded with mysteries" ant
rumors of gigantic railroad deals upon al
unprecedented scale 81 being either In pro-
gresa or already accomplished. Details O.
these have filed the daily press for weeks
past, but only such operators ms are within
the charmed circles appear to know the
trne inwardnsss of many of them. AZ q
consequence Judgment passeR for little IN
estimating tho future value Of many securl-
ties, for the market is almost wholly under
the control OF comparatively few persons.
whose operations must inevitably influences
the value of thousands of millions OF stocks
and bonds, Never in the history OF Wall
street was the value of such m enormous
aggregation of securities 80 absolutely IN
der the control of SO small a circle as
ct his time. Such n state Of
affairs cannot be considered satisfactory;
because not only is speculation likely to be
unhealthily stimulated. but tho future of
these combinations gives birth to a variety
of uncertainties which, while they may
elevate p-ices, will certainly not add to
their stability. There is little question bat
that in the end lone of these com blnatlons
will work for the beat intercsts of all son
cerned; but in proportion SIS their result
means increased profits to capital without
corresponding benefits to the masses, and
go far "a their effort is to restrict conpetl-
ton we nsy. sooner or later, expect the
awakening of active public hostility. Ag-
eresxions OF this sort by capital are sure to
- T. ~, Tho pN0r& rf
labor; while the demagegue In politics re-
Quires NO better material for his anti
monopoly cry than these combines to re-
strict competition, and the labor agltator
finds his best argument for u strike IN the
increasing profits of capital.
Reasons such as these cannot be ignored
in estimating the distant future, but it is
the more Immediate future that Wall street
is now concerned about. While the sltua-
ton presents many natural conditions of
CT eat strength, especially those based upon
the development of our natural resources
which tempt us into being at tlnes too
optimistic, still ther. are some suggestive
features which call for prudence. Al
though stocks ara in strong hands, tie
public whosa operations are necessary to a
healthy ball market have not yet taken
vigorous hold, and tho cliques responaible
for recent advances have baen sncumbered
with millions of stocks sold by t~oreiGnsra
which they never calculated upon II
Europe takes back These stocks they will be
much relieved, if not they will have more to
sell. In either event they have a large un-
dertaking before them to induce the public
to take their stocks at the higher range OF
values. Circumstances however, favor
them in many ways, and whom this unload
ing process starts in We may expect some
lively and cratic movements.
There is one other factor which is again
becoming influential in Wall street, and
that ia the silver question. Already it is
producing important effects which had not
been expected to appear vt this early stage
in the outworkings OF the silver act of 1890.
Tn renewal of the exports OF gold has
proved az sye-opensr. During the year
ceeded our imports Of the like items by
$185, 600, 900, and for the first two months
of 1892 fully the Same rate Of excess has
been maintained. 1t might have been OK
pected that under such circumstance We
should now be importing large amounts OF
gold to settle this large apparent trade bal
ance in our favor. The fact is, however.
How are we to account for this e1traordi-
nary movement? After setting off, against
this creditor balance of soma $2l5, DOC, 900
for the last fourteen months, all that may
have accrued against Us in Europe on &C
count of interest, freight on imports, under
VhludllOuS, elC.y LueTd oUGub W Co u OAlAUCS
in our favor of something like Ill millions;
for an average OF the last decade, about
eighty-fye millions surplus of exports
over imports has sufficed to ~liqu1date these
debtor items. There arises from these
facts the strongest possible presumption
that, since the beginning of 1891, consider
ably over 100 millions of our Sc
curities have been returned from EuEope:
for the credit balance has unquestionably
been settled. and there is no other way i'll
which it could have been lone except by
the return of stocks, honda, stc. This re
fux of our securities dates from the period
of the enactment of tho last silver law,
which doubled the government purchases
of silver. 1t is coincident with an opinion
everywhere entertained in European tinan-
cial circles, and emphasized by the foreign
press, that the course of legislation and the
bias OF popular opinion in this country in
Dictated II grave possibility that our curren-
cy system might become subject to a gem
oral depreciation of value, which would
our securities not made specifically payable
in gold. Aa Europe holds many hundreds
of millions of American securities of ths
very kind that would be subject to such
deterioration, it is nothing more than
might be expected that our obligations
should be returned in extraordinary
amounts, and tho more 80 as tho New York
AAt"" SsSA IA @ VI INK
them without suffering serious reaction.
Over lD millions of 6ecurities retu ned
within fourtoen months! This is the startlinp
fact just dwvning upon the perception of
Wall street, and it naturally suggests some
very grave inquiries, such, for instance, as
how much gold should we have had to shin
IN payment for these returned securities
had we not been favored with an extraor-
binary surplus of cereals which Euroue
happened to need? how are VS. to nav for
any further amounts that may be SO 49,
turned! what dimensions may this future
Iehux OF Investments assume should tbs
mama Tor froe coinage continue TO control
the course of legislation? and, with
only some $4,000, coo of gold in
Inc treasury, outside the required
reserve aGainst greenbacks, where
10 the gold to come from TO satisfy these
TWO possible foreign drains? 1t is thus
seen tnat the SILVER mama IS bringing us
iauch nearer to a pellous verge than ii ia
ploasaht to contemplate, and that unless
the madness OF free silver ngitution can 81,
IA some why stayed, We n.ny vltue.a . s.I-
locs disturbance OF public Confidence n,uel-
earlier than lag been suproBvd poss,ule.
Under these clrcumafarces the main none
OF wan street Is N tie possible formation
Of an international conference to settle ira
Whoie silver problem upon II brond and
snfo tonIuntion. secretary Fosters vis;,
to Europe for the understood puruose IF
conference with the British poyerIIinnnt i.
therefore hailed with great satisfactjnn ns
aftOrdlnG u way OF eEcaue from nr.va rna