St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-11
MONEY CRISIS rs OVER.
HENRY cLEWS TAXES A FAvoRaBLE
VIEW or THE OUTLOOK.
FUNDS BECOMING PLENTIFUL.
The Disturbance of Credit Among
Merchants More Extensive
Than on Wall Street-New Eng
land Banks Now Taking Gilt
Edged Paper-Active Buying
in Wall Street.


land Banks Now Taking Gilt
Edged Paper-Active Buying
in Wall Street.
Special to the Globe.
New YORK, Sept. 10.-The general
revival of financial interests fore
shadowed in our advices of the last two
weeks has arrived. There no longer eX-
lists money crisis The city banks
were, at the close of last week. actually
above the legal limit 1of reserves (al-
though the weeks. averages showed a
slight deficiency. and during the past
week they have made a further gain of
currency in their exchanges with the
interior. They therefore no longer suf
ter from the restraints of the reserve
laws, and are on the way towards fur
Their large accommodations of money.
Putting together the imports Of gold,
the new issues of bank notes and the
issues of United States notes against
silver purchases, the country must now
have some S75.0G0,000 more currency
than it had at the beginning of the de-
preston. The boarding by private per-
sons, by country banks and by savings
banks had prevented this accumulation
from affording any relief. Now, how
ever, the hoarderS have recovered, or
are recovering, confidence. and are con-
yertipg their
CASH INTO INVESTMENTS
or depoSitng it in bank, and this large
amount of money is naturally flowing
into its accustomed channels aud de-
positories.. We have therefore now
reached stage that always follows pc
RODS of great stringehcy, at which the
previously unavailable money flows in-
to the custody of the banks and becomes
available for general use. The strin-
gency produces contraction of busi-
ness; that contraction diminisheS the
amount of mouey needed; and there IS
then redundancy Of circulation. In
this case The redundancy will be all the
greater from the fact that the gold i'm
ports and the new issue OF bank notes
are to large extent special increment.
These facts indicate that we are now
drifting with some rapidity towards all
unusual glut Of money. The first es-
sential of a general revival Of business
is thus secured, and by process which.
because it is natural, may be depended
upon. Up to this point, however, the
recovery of confidence in general bust
ness is behind that which has occurred
in banking and financial circles. 1t is
not to be expected that it should keep
equal pace. For the disturbance of
CREDIT AMONG MERCHANTS
has been more extensive than that
which has been experienced in Wall
street, and the machinery Of trade
moves more slowly than that of finance;
the trade moreover always has to wait
for the readiness of the banker. The
restoration of general business, how
ever, cannot be much longer delayed.
Already the beginnings of improvement
are apparent 70 all the leading branches
of trade. There are more buyers i'll the
markets, and although they are making
inquiries more than contracts, it is evil
dent that they are in need of consider
able rep!eniShments of their stocks. 1t
Is many years since stocks of merchan-
disc have been So light as at present: 1
and this applies equally to the retailer.
the Jobber, the manufacturer ana the
importer. The shock of the last three
months of depression has been too
severe to admit OF an Immediate ave-
rage demand from consumers; but it is
safe to assume that the reduced ability
to buy is not at all proportional to the
lowness of stocks. For large portion
of the last three months the production
of many kinds of manufactured goods
has been reduced by ne-half, and as
rule stocks in first hands probably do
not exceed one months consumption.
AS against this condition Of supplies we
have to set off large accumulation of
deferred wants and
POSTPONED BUYING
together with a restored ability to buy.
The nature of the depression has been
rather temporary impairment of the
instruments of buying than a destruc-
| ton of the real ability to buy. Credit
has been suspended, not from insolvency
but from transient monetary disturb
ance. The monetary crisis having been
virtually overcome, credit revIves, and
the ability to buy and to replenish stocks
Is restored. The actual buying capacity
| Of the country has not been impaired at
all proportionately to. the extent of the
| depression; and therefore the condition
| follows crisis due to over-trading.
| speculation, initiation and an extensive
| prevalence OF insolvency. Under these
| circumstances, 1t seems reasonable to
| expect that, when merchants have re-
| covered little more from the late acute
shock, brisk revival of business vii!
set in, and possibly with some recovery
| in prices from their present low level.
The recovery is not to be expected to
tfNo ftIlt roc
Ferrous activity that existed before the
crisis; but it is not too much to hope
that 1t may prove much quicker and
more complete than that which usually
follows periods or panic. Mercantile
credits now have the backing of the
banks. The New England banks are
| taking considerable amounts of gilt
edge paper, aud the city banks are in
| the market for the better class of names
at Z per cent.
TIE RESUMPTION OF DISCoUNTING
| means the resumption of trade. Natur-
| ally, the prospect of an early reduction
| OF tariff duties is calculated to keep the
| production of manufacturers close to
| the demand. This sort of preparation.
| however, has, from other causes, al
| ready gone as far as is needful in order
| to meet the tariff changes; and all that
! is required to keep the market in
| fairly healthy condition is to see to il
| that production is kept we'll within the
| limits of moderate normal demand:
| which, with the prevailing caution
| among manufacturers, may be safely
calculated upon. The paugs of prepar-
| alton for the new tariff having already
| been virtually endured, the only remain
| ing question to cause much concern is
| as to the extent of the reductions of
duty. AS to this, there is reason to
hope that the administration may favor
more moderate policy than might
have been attempted under other cIr-
cumstances, The final repeal of the
| purchase clause of the Sherman act is
| now so generally taken for granted that
the silver question no longer causes any
! serious apprehension. Congress, how
| ever shows such decided disnnsitinn