Los Angeles herald., 1892-01-11
The FINANCIAL OUTLOOK FOR 1892,

AS was 10 De naturally eNpecteu, tne
outlook for the year 1892 is exhaustively
treated in the circular of Henry Clews
& Co. 1t isassumed that the immedi-
ate future Vi the United States is all
that could be desired, with some re-
serves that are stated conservatively.
The circular opens thus:
Ii the past year has been one of un-
precedented harvests and, as such, has
conferred inestimable benefits upon our
long depressed agricultural interest, it
has also been one of check, reaction and
dullness to most of our manufacturing
industries. Constituting as we do an
inseparable part of the community of
nations, it has been impossible for
us to wholly escape the effects
OF the European reaction that set in
with the crash of the Barings. That
great failure was but the culmination,
In the case of single house, of a system
of wild adventure and loose financing
which had infected every money center
of the Old World, and had brought
Europe to the verge of financial up
heaval exceeding in gravity anything in
the worlds previous experience. The
Bank of England's guaranteeing the
estate of the Barings, not to save and
perpetuate the house, but to avert the
universal crash which its unchecked
downfall would involve, and the borrow
ing of large sums by that bank from the
Bank of France, tell more emphatically
than can any words how deep was the
chasm on which British finance verged
at that moment. And the situation that
threatened London, subsequent events
have proved, was duplicated in the case
of Paris, Berlin, Rome, Madrid and
almost every other European capital.
The elimination showed that the
fnanciers of every nation had, for ten
in launching enterprises the world
fated in their capitalization, but also de-
void of any sound basis OF permanent
self-support. In this way, the capitalist
force had become pledged to an extent
that made it impossible to satisfy the
demands of legitimate business under a
period of pressure, and hence there was,
on every money market of Europe, a
sudden precipitation of doubtful or rot
ten securities for realization. The con-
sequence of this has been decline OF 40
to 80 per cent in the market value OF
most of the corporate issues put out
within the last ten years.
There is noquestion that, since the ex-
plosion of the schemes of George Law,
nothing in the financial history of the
world has equaled the disasters
following upon the failure of Bar
ing Brothers. The incidents fol-
lowing upon the collapse of Pereire in
France, and of Sir Morton Peto in Eng
land, were trivial in the comparison.
At the same time these things have
been fully adjusted and their effects
have been discounted.
There is one passage in the Clews cir
cular for the opening year that will
crafty the friends of silver. 1t seems
that the sentiment in favor of BIZ
metallism is gaining force. The Clews
view of the matter is reproduced below ::
There is, however, one possible con-
tingency which, should it arise, would
very materially modify all the probable
tiles above considered. If we may give
full credit to what is reported from
Washington as to the governments ad-
vices from its agents deputed to ascer-
tain the feasibility of assembling con-
gress to re-establish silver upon an in
ternational basis-there is very unex-
Spected disposition, amounting almost to
anxiety, on the part of European gov
ernments, including England. to con-
slider such proposals.; and the over
lures openly made by Chancellor Go
schen certainly give not little credi-
bilitv to these reports. Should it turn
out, within the next few months, that
the principal nations are willing to bind
themselves, along with tine United
States, to coin silver without
limit as to the amount, at the
ratio OF 151s to l, and to
constitute such coin legal tender
equally with gold, the effect would be
banks of Europe upon broader footing
fidence into all the financial centers.
by one half the worlds metal
lie money being now unavailable for
international use, the buoyancy that
would naturally follow the restoration
of silver to its old-time univ ersal availa-
DlllJJ. we &Tc luCliDtu W E6RdTu lDlS
contingency as being sufficiently proba-
BILE to warrant its being Hopefully
watched. Should it be realized, dark
shadow would be lifted from large
class of securities against which there is
now distinct d &c imination, especially
abroad, as being possibly payable in
silver. 'lad
The rehabilitation of silver is the
one thing needed to restore prosperity
throughout the world. As suggested
above, there is strong movement
looking to that end. The only classes who
will actively oppose the reconciliation
of the white metal are persons of fixed
incomes, who desire to receive their rev.
enues in gold, and who also wish to see
the purchasing power OF that metal in
creased. Against them are the masses
and the energetic of all nations. That
the will of the immense majority will
ultimately prevail we believe to be be-
yond peradventure. The fight has re-
ally been won in the last ten years. 1t
may require some time to beat the re-
naming recalcitrants into submission,
but they must bow to the inevitable.
BimetaIlism is one of the triumphant
issues of the immediate future.
------------------------ ------------
TuEpIr 10 M cuasfiOu. 0f tho ia nt fb a r