The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1892-11-10
THE BUSINESS OUTLOOK
CIRCULAR OF HENRY cLRws & CO., ON
COMMERCIAL TOPICS.
Railroad Stocks are Held Firm With Pros.
poets OF Good Dividends Money is
Free and Trade in All Lines
is Prosperous

transactions are confined mainly to
The industrial" stocks and to those
OF the Reading, st. Paul, New Eng
land and Northern Pacific railroads,
while the general list Is neglected.
The "bull" operations in certain in
dustrials have directly helped to sup
port the dorm ant railroad stocks and
prices therefore are generally kept
steady, but there is feeling in some
quarters, that when the move
ment in the aforementioned
specialties is siackened the now
neglected stock may also suffer. 1t is
doubtful, however, whether this view
takes suf1clent account of the. eIe-
ments OF unusual strength underlying
the railroad list, which have not yet
had adequate expression in an ad-
vance in their prices. The holders of
railroad stocks are generally men of
large means, who know what the
roads are doing and appreciate the
immense business that IS in prospect
for them during the twelve months;
and, although they may not deem the
PRESENT moment the most opportune
Tor an active speculation in their re-
spective speciaIties, they would not
be likely to sit quietly by while the
"bears" trifled with their interests.
The unexpectedly large increase in
last weeks surplus of the banks is
taken as indicating that the outflow
of currency to the interior has reached
its climax, and that the shipments to
the South, soon to be forthcoming, are
likely to be provided for by a reflux of
money from the West. The reserves
OF the city banks, however, are in q
low condition, much below what they
were a year ago and lower than has
been expected for the remainder of
the year. The net export of fifty-two
millions of gold, during the expired
portion of the year, has caused large
depletion of the lawful money re-
sources of the banks. Since
February last, their stock of gold and
legal tenders has been reduced from
from l65,C09,000 to 118,0O0,OOO; yet,
with this loss of Al ,00O, 900 OF lawful
money the loans have been reduced
only n 100000. Under these circum.
stances the disquieting movements at
the foreign money centres are the
more closely watched, and there are
exceptional reasons for such vigilance.
There has rarely been a period when
the great national banks OF the world
have shown such an anxiety as at
present exists to accumulate, This
boarding tendency is not due to any
commercial wants either present or
prospective; for everywhere, except in
the United States, trade is depressed
and contracted. 1t is due partly to q
conviction that the critical position OF
silver may compel an extensive resort
to its substitution in banking opera
tions by gold, and also
significant unexplained demand for
gold from Russia. The first of these
causes naturally creates deep inter-
est in the approaching monetery con-
ference at Brussels. The bare posi- |
bility that something may be done at
that gathering tU stay the discard
ment of silver seems, however. to have
the effect of holding this boarding ten
dency in check for the time being; but
should that hope be disappointed it is
quite possible that the banking clamor
tor gold may be reviewed early next
spring. The special Importance of this
to the United States lies in the fact |
that this country is looked to as the
chief source from which the coveted |
supplies of gold must be drawn. The |
result of tho forthcoming conference |
has therefore special importance for |
this country apart from it's bearing |
upon our specific commitments to
the use of silver; and it is to be eX-
ad that tho of |
market and, to some extent, the course
OF our stock market may DO influenced |
by this factor. The drain of gold to
Russia is at present a mystery. The
czar's government is understood to
have to its credit in England 10000, 900
sterling, i 4 Paris 5000, 900 and in Ber-
lin 1000 600, in all 100000 sterling
which it can draw at pleasure. Russia
is now drawing ON these deposits, and |
the only check upon her continuing
her drafts, is the danger that in 90 do
ing she may Obstruct the issuing of |
loan for EGO, 200, 600 which she desires
to negotiate in Paris. Austro Hun
gary is likely to conduct her ac-
emulation of gold with like
prudence; for she also wants to con-
tract loan of twenty millions sterling
to enable her to resume gold pay
ments, and might easily defeat her
purpose by making gold scarce
through antecedent purchases of that
metal. 1t will thus be seen that i'm.
portant operations are impending
tending to drain gold from quarters
where it is most accessible into more
or less fixed and permanent boards,
and the sensitiveness, in prospect of
these operations, must be expected to
increase rather than diminish as the
time for their fulfillment approaches.
No doubt when the time comes, we
shall be found competent to take care
of our interests, but anticipation will
only contribute to such preparedness,
and in the early future bankers may be
expected to maintain q conservative
position. Fortunately, our credit sys-
tenn and the general business of the
country are in an exceptionally sound
position; and the composure with
which we last year took some 100 mil
lions of securities, returned from Eu-
rope within comparatively few
months. show that we can withstand