Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-21
THE FINANCIAL OUTLOOK.
ESPECIAL TELEGRAM TO THE DISPATCH. J


NEW YORK, Nov. 20.-''A Foggy FL
nancial Outlook" is the title of Matthew "
Marshall's article for tomorrow's Sun, which
is as follows:
The bank statement OF Saturday shows
that the return flow OF currency from the
country to the city has at last commen eed
in earnest, and 1t may now reasonably be
expected to continue until it has replen-
ished the bank reserves up to the point at
which they stood before the autumn drain
began. 1t is noteworthy that while the
weeks gain in specie has been 50, sec, ,20O it is
offset by a loss of greenbacks Of s59I, 100.
This suggests the idea that bank officers are
accommodating gold in preference to green
backs, as being equally COOL in any event,
and betterin case gold should go to pre-
MUM. For the present it makes no differ
ence whether the reserves are gold or paper,
the important fact being that they are in
creasing and that the rate of interest for
money is consequently falling.
Ordinarily it would be easy to forecast the
course of money matters. for n few months
to come at least. We should have only to
look back to see what has happened IT this
season in former years to know what to ex-
pect now. Money ought to be easy until to-
ward New Years Day, when the require
ments for annual settlements and fol. diyi-
ueHu anu interest payments Woutu make
the demand for it temporarily active. Then
should ensue another period OF ease until
spring, and then an increasing stringency
during the summer, eliminating in the
autumn crop movement, and finally we
should come back to the point at which We
are at present.
A Little More Foggy This Year.
This year the matter is more complicated
and the financial outlook is rather foggy.
Although the elections are over and their
result settled beyond doubt, the politicians
are doing their best to keep up the excite
ment which preceded them, and to confuse
the judgment of business men in regard to
the future. As 1 have repeatedly pointed
out. nothing demands any radical change
by the victorious party in the nations in
dustrial ana financial policy, and yet be-
tween them and their vanquished opponents
the controversy has been renewed over the
practical measures now to be adopted. If
the victors are wise they will insist that
there shall be no precipitate legislation by
Congress, but that whatever is done shall
be done cautiously and with due delibera-
tion.
The Republicans, aided bv some Demo-
Gratis, insist that the great point at Issue in
the election was whether the protection
policy which has prevailed in this country
for the last 80 years should be continued or
whether it should be abandoned for one of
free trade. The majority of the people,
they say, having decided in favor of free
their wishes and to do it as speedily as possi-
bic. Hence they urge that the present Con-
gress shall at once proceed to revise the tar
iff upon Tree trade lines and If this Congress
cannot complete the task during its final
session which ends next March, that the
new Congress, which regularly should not
meet till n year hence, shall be called to-
gether for the purpose as soon a5 the pres
ent Congress expires.
The Revenues Must Be Considered.
Apart from the falsity OF the assertion
that the country has pronounced i'll favor
of free trade as against any protective
duties whatever, no revision of the tariff,
however few may be the articles affected,
can safely be made without an exhaustive
inquiry into all the ramifications of the in
dustries in which they are employed, and
this it is plain, cannot be done by the pres
ent Congress or by its successor in the
hasty, slap-dash way talked of. Besides,
the question OF revenue has to he consfd-
ered, as well as that OF the conflicting claims
of free trade and of protection, and the in
dispenslbe preliminary inquiry of how
much money is needed to meet the neces-
stiles OF the Government, and how it may be
raised, will of itself consume much time.
The repeal of the act of July IA, 1890 di-
recting the mont thlv purchase by the Gov
ernment of 4,500, COO ounces of silver at its
market price, and the payment Tor it in
legal tender notes, is undoubtedly meas
ure which is substantially agreed upon by
both parties, and is therefore most likely to
u.
act is, aud imperatively as its repeal is de-
manded by sound financial principles, it is
questionable whether it would not be, wiser
to let it continue in operation until the
small premium on gold to which it
is carrying shall demonstrate its real
character so plainly that every body will see
it, A repeal of the act now would also
strengthen the demand in the agricultural
districts for more paper money, either in
the form of State bank notes, as we see in
Georgia, OF national bank notes based upon
of simple greeDbacks; and if this demand is
granted we shall be no better off than we
are at present.
No Hopes for the Brussels Meeting
That any currency legislation will follow
tho deliberations of the International
Monetary Conference, which is to begin it's
sessions at Brussels tomorrow, is highly
improbable. Practical bi-metallism, without
the concurrence OF the great commercial
nations OF Europe, is conceded by everybody
to be impossible, and the change by this
country from the single gold standard to the
single silver standard, with the enormous
scaling down of public and private debts
which it would entail is demanded by only
a small minority of our citizens Still, the
cause of silver has mary friends both i'll the
present Congress and i'll that Just elected,
and there is no roretelling absolutely what
they will endeavor to accomplish nor how
far they will be successful.
For the past three years many experienced
OBSERVERS nave Doen constantly
q general European war. and while the fail
ure of their prophecies up to the present
Is IL good omen for the future, peace
yet be said 10 be assured. OF the COM
plications connected with individual uffairs,
OF politics, the principal one ut
present arises from American debts to Eu-
ropean creditors. The amount of these
debts and their increase and decrease have
always been n matter OF pure elm and have
never been even approxilna tely ascertaIned.
At this moment a great deal is said about q
possible newal of gold shipments to pay
Tor sterling exchange supposed to have been
borrowed Il Short time ago. That exchange
is unusually high for this season of the year
is not to be denied, but the enhanced price
may as we'll be caused By Il short supply as
by n large demand.
When men do not know what to do they
very easily follow the saie course of doing
nothing, and operators, for II fail, take al !
vantage of iu. When the disposition to sell
exceeds the Willingness to buy prices must
20 down, and this, l take it, is the real
reason OF the declines lately observable on
the various exchanges 1t is not that peo-
be fear that general industrial and f1nan-
,ial ruin will follow the advent to power of
the Democratic party. but they are unable
10 come 10 any decided conclusion as tn
what the party will do, and therefore wait