The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-01-03
THE FINANCIAL OUTLOOK.
The Operations of the Past Year and the
Prospects for the Future.

national government, from Wall street
point of view. 1t reads as follows:
''The year 1892 closes with a record of
events of more than usual Importance to
the investment interests of the country. 1t
has witnessed a elimination of public
opinion upon a monetary question of the
deepest significance, not only to the United
States, but also to the civilized population
of the world at large. After centuries of
the joint use of gold and silver upon a
fairly even parity OF value. il has become a
worldwide question whether the use of
silver shall be abandoned, or broad inter
national arrangements shall be established
for giving that metal stability OF value
and perpetuating its use rs form of law
full money coordinate with gold. Such a
crisis has been threatening to the existing
currency arrangements of every nation;
and, so far as it affects monetary systems,
it equally concerns vested interests, out
standing obligations of every kind, and
commercial values the world over; and
especially does it concern the delicate re-
latons between the debtor and creditor
classes.
'In the United States, the problem is
especially urgent; for we have, within late
years, committed ourselves to the fate of
silver by incorporating the metal into our
currency system to the extent OF several
hundreds of millions Of dollars Satisfied
that there is no way Of reaching a perma-
nent settlement of this question ex-
cept through a common international
agreement, our government this year pro-
cured the assembling of a congress or tos
nations to formal consider tne problem.
After free Interchange Of views aud the
discussion of certain proposals. the con-
ference adjourned without accomplishing
any definite result, hut TO reconVene 10
the spring of 1898 Taking an impartial
review of the work OF that body, we ara
driven to the conclusion that. although
the subject may receive further earnest
discussion between the several govern
ments, yet the jealousies and prejudices
surrounding the case ara so formidable,
and the theoretical and working differ
ences SO great, that it seems virtually
hopeless to expect the concessions and the
commitments from the various powers
that are indispensable to a sound and last
ing int ternatioual settlement of the queS-
ton.
Thus the end of the year finds this
country confronted with the question
how best to take care of oursel,e es under
the circumstances? and with no more ef.
fective means Of protection than that of
suspending. temporarily at least, further
addition to our stock of silver. On the
last day of 1892, therefore, there is no
question that more seriously occupies
public attention than this one-will con-
gress be found willing to thus act? This
is really the most important problem that
we have to carry over into the new year;
and yet we may hope that our legislators
will not fail to enact the explicitly declar-
ed verdict of the late election on this is
sue. So far, therefore, as respects our
own country, the symptoms indicate how
ever that the ominous siiver-cloud of
danger may soon disappear from the
horizon.
Next in Importance among the events
of the year, is the emphatic demand for a
change OF commercial policy asserted by
the November election. That verdict was
hardly unexpected, and therefore its com
ing has excited less interest than might
have been expected. Not the less, how
ever, is the foreshadowed change one of
vast Importance For the last thirty years, !
our national development has followed the !
direction of the lines drawn and made
effective through legal enactments. The |
effect OF those euactments has been to es
tabllSh in this country "A higher range of |
prices and higher scale of wages than |
have existed in any other country, and |
also to place, in certain sense, An artific- |
lal valuation upon large portion of our |
national wealth. The policy to be execut
-tl DN Jut new COuSC6SS anu DiSbEhJiOu
aims at the reversal of the process that has |
been in force during the past general
lion. 1t aims at lower prices |
and therefore cOrrespondingly lower |
wages; and it consequently means lower |
valuations for whatever is produced, |
bought or sold, or held. 1t remains to be |
seen to what degree these changes of values |
nay be enforced, and whether it will be |
decided to make the full change at one |
a
1t is to be hoped that the latter |
course may be adopted; but, in any case, |
he character of the effects must be the |
reduce values. Wall street will |
understand how to interpret such change; |
)ut it is not likely To fall into the mistake |
If discounting the effects too early in ad |
rance. For the change Is II very complex
me, and will not be without its counter
lctons and ameiorations, which call for
,ool watching rather than precipitate
action. Among such ameliorations, these
deserve due weight:-taat, If manufacturers
ire embarrassed by fall in prices, they will
ind remedy liz themselves, reducing wages
md in getting raw material cheaper; that,
labor receives lower cash wages, the eX-
,enses of living will at the same time be
reduced; that, if the in
.Ome from some investments should be
edureG, the reduced income would have
power equal to that possessed
" the former higher income: and that, II
ONE few industries Will be exposed to
utfer in consequence of their lack of nat
lral advantages, many more Will be bene
tied through lower prices opening to
hem foreign markets from which they
lave been excluded But with every dis
position to put lenient and fair construc-
ion upon this Industrial revolution. it Is
lot to be conceded that the stage of its
must be attended with some
disturbance of business and with losses to
-Ttaiu interests: while the ultimate out
workings of the sweeping cuanGe must
wait the uncertain verdl ct of experience. /
Another important feature IN the
InauCial movements of 1892 has been the !
argeneSs of our exports of gold, winch Is
ii the more significant AS following the
preceding year OF large like outflow. In
he case of each of the two years, the trade
balance has been SO largely iu our favor
hat net import rather than a large net
xport OF specie might have been expected.
he facts as they stand, however, are to
e explained on the suppOsition, con-
rmed By observation. that very unusually
arge amounts of our securities have been
eturned from Europe; and that occur
ence fudS its explanation in our silver
Ollcy having raised dIstrust as 10 whether
ar Investments may not become payable
D that form of money. Much must de-
end on whether 1873 provides a remedy +
Or that dlstrust by suspeudgng the Sher-
lau silver act.
80 far IS respects railroad investments.
So has been an uueveujful but on the
mole very satisfacr DRY year. The crea-
oRs OF new line have been upon n strictly
5uservatlye basis. nor Is there IN any direc-