St. Paul daily globe., 1893-08-28
sTRINGENCY BROKEN.
BETTER TIMES ARE ALREADY DAWN
ING IN TIE EAST.
MONEY BECOMING EASIER
Thirty Eight Million Dollars in
Gold Has Already Arrived
From Europe. and More Is
Coming = New York on the
Verge of q Restoration Of Her
Reserves
Special TO the Globe.


Verge of q Restoration OF Her
Reserves.
Special TO the Globe.
New YORK. Aug. 26.-During the
past week the stock market has fairly
held the frmness of undertone exhibited
the previous week. The market, how
ever, is so narrow and so entirely i'll the
hands of the professional traders that it
easily reflects any change of attitude
among operators, and at the same time
affords special inducements to the crea-
tion of fluctuations. The stubborn firm
ness of prices has induced reduction
of the short interest. An unfavorable
influence, however, has come from Bos-
ton in the shape of large realiziugs
upon General Electric, with a resulting
decline in that stock. Large sales of
Northern Pacific issues also tended
to weaken prices momentarily. The
sensitlveneSs about time loans still con-
tlnueS. These various influences,
though comparatively unimportant both
in detail and in aggregate. have proved
sufficient to affect highly sensitive
market and to cause realizingS upon the
rallies. Even the good effect of gain
of S5.000,000 in the reserve averages of
the banks only made the occasion more
favorable for the taking of profits. The
course of the silver discussion in con-
greSS does not, at the moment, prove to
to be an important influence in the
stock market. Not at all because its
great significance is underrated; but
because, in its present stage, the issue
is not calculated to affect immediate
values. Wall street, perhaps, estimates
the probabilities as five TO one III favor
of the unconditional repeal of the silver
purchase clause, and that calculation
undoubtedly gives backbone to the mar
ket. But there is much
Diversity of Opinion
as to what may prove to be the first
effect of the repeal upon the financial
markets. That it will result in great
and general revival Of confidence there
can be and there is little question. But
the present crisis is so extraordinary in
its nature and its workings that men
are cautious in estimating how much
effect may be expected from such rad
ical reliet as this would be; and, more
over, in the present public mood. such
a premium is put on doubts that the
solitary chance of an unfaYorable de-
cisiOn by congress has much more in
tlnence than it ought. In other words,
Wall street is in temper to take little
for granted and to discount no more
mere hopes. Besides, there is no def
mite opinion as to what may be the i'm
mediate effect of the repeal upon the
money market. The currency machin-
cry has been so fundamentally deranged
that it is not easy TO say what time it
may take to draw out the millions of
| money held in hoard, nor how long to
restore the distribution of currency into
| its normal channels, nor yet how far the
! usual fall demand for cash to move the
crops may affect the restoration of the
| monetary equilibrium. Hence. whilst
repeal would unQuestionably caase
universal and immediate
Return of Confidence.
| vet it is not impossible that some time
might elapse before the various fnan-
! ciaI entaHglements were straightened
| out and the loan market become settled
aud easy. Congress seems to be steadily
! working It's way towards a solution of
| the silver question III conformity with
| the wishes of the great majority of the
! people. 1t was hardly to be expected
| that members would fOrego such an OPP
| pOrtunity of exhibiting their oratorical
| power, and hence there has been great
deal OF waste time over discussion III the
| house; but there is no longer any doubt
| that the outcome in the lower chamber
| will be safe, If not very large majority
in, fop Of al
| the senate there is likely to be similar
trIiing with the public impatience
| for verdict, but the result in that
| branch of congress may be regarded as
| being virtually beyond doubt in favor
! of the national interest. The discussion
| of this question brings out a diversity
| of suggestions for a remOdeling of our
currency and banking systems. none of
winch seem likely to result Ill any inn
mediate changes. Their chief signifi-
canoe lies in the fact that they reflect
widely prevailing dissatisfaction with
much of cur monetary and banking
arrangements under the law as it now
| stands. This may suggest the necessity
of consideration OF these QueS tionS at
no distant day; but, as yet, they have
not become
''Burning'' Issues.
| and therefore are not likely to hold con-
| greSS IL session after the silver question
| has been settled, but to be deferred un-
! til at least the tariff and Internal rev.
| enue legislation has been disposed of.
| The condition of monetary affairs is i'm
| proving, and to a greater extent than
| appears on the surface. So long as the
! banks have to restrict their cash pay
! ments and currency is selling at pre-
| MUM appearances must be unsatStac-
| tory: but. although these features still
| remain, a great deal is being accom-
| piished towards their removal. The
arrival OF about SIS. .000, 600 of gold
! from Europe. and still more
| on the way, and the issue of
| S2O,000.000 of bank circulation, all of
which bas been accomplished within
the last month, cannot possibly fail TO
| work out an immense relief. The banks
| of the city must now be on the verge of
restoration of their reserves to the
| legal limit, and there can be no doubt
that tue country banks are holding
| much more than the average amount of
| cash. When these facts become officially
| declared the spell of tine stringencY will
| be broken, and confidence and ease will
| gain rapidly. In the meantime, there
| are distinct signs in the interior cities of
| more decided turn towards recovery
than has yet appeared at this center.
HENRY CLEwS.