The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-06-26
FINANCIAL REVIEW.
Henry clews's Weekly Letter on
the Money Situation.
WALL STREET STILL UNSETTLED.
EGoot oftho Issue of Clearing House
CertIlcatcs-Commcrclal Interests
GoIpg Through a Safe Process Of
Read ustmcnt-Complex Elements
in tho Money Market-The Latest
Estimate of the Situation.
reeto, pispa,ea 10TH intelligence.

New YoRK, June 94.-WalI street
still remains unsettled. The action OF
the associated banks, in authorizing
the issue OF clearinghouse certificates,
was a new turn in the financial kaleido-
scope. 1t has introduced somo new as.
poets in affairs; but to the strictly
Wall street interests it has not yet
brought any distinct stimulus or ben
eft.
The first elect OF this change has
been to transfer funds that have been
loaned to the stock exch ange interests
10 mercantile and industrial borrowers
lind to needy banks in the interior.
Naturally, this changing of loans has
produced a sharp stringency in cali
and time money; which has pre-
cluded any benefit in the form Of u rise
in securities. But neither has the
change produced any inContincnt SELL
ing nor any general decline in values;
which shows that the net effect of the
relief devised by the banks has been to
materially strengthen the basis OF con-
tidenCe in the stock market.
The main object OF the banks was to
check the general disruption of credit
that was rapidly carrying tho whole
country towards q serious condition.
That, the banks sought to effect through
providing an elasticity in loans beyond
what is permitted under the restraints
of the national banking laws. That stop
being taken, there was no longer any
real danger. Its first effects arc IN in
crease of local discounts, and an extern
sion OF relief to the banking interests of
the interior, whose inability to lend
had largely aggravated tho %stringency
ut this centre. Those results arc now
in process of realization. There has
also been a distinct relief among local
merchants; failures are less frequent;
and the outflow Of currency to the in
terror banks is abating. The remedy
in the commercial community Of
course could not be perfect at
this early stage; 1t is, however,
progressing steadily and will soon show
a moro general and more thorough re-
Lief. In the meantime, we do not OBJ
serve any marked recovery in tho spirit
or activity Of the commercial markets.
The condition OF these markets is pecu-
liar. There is no great lack OF demand
from retail consumers; and jobbers
could sell any quantity Of goods on
three months; but they refuse to do so
until they find a freGr market for tho
paper that would thus be created. The
result is a baroness OF stock among re-
koiInn,. YrbSnb ,onnnu tbn FnoaruoNinn NJ
Il demand that, ut u more advanced
stage Of the recovery OF confidence, is
likely to break out into a really active
state OF trade. In some OF the markets
especially, merchandise is held at u
liberal discount for cash, which is even
bringing in foreign buyers; and in this
way we are even rc.exporting goods that
have been imported for our own con.
sumption, which amounts to 4 real
though Circuitous method OF relief.
These facts are cited to show that tho
commercial interests are going through
Il natural and safe process OF roadjust-
mGnt, which in a short time may be ex-
pected to restore steadiness to tho
money market and afford the stock ex-
change houses opportunity for getting
their usual measure Of accommodation
from the banks. Wall street must be
expected to wait for its turn until that
outcome arrives. 1t is ne light cause
for confidence that, during this interval,
Wall street shows such good evidence
OF its ability TO hold its own. Fortu-
nately, the great transportation interest
shows little symptom Of suffering IRON
tho aust that have SO deranged first
tho Investment markets and now the
commercial interests. The earnings Of
the railroads exhibit liberal gains in
spite OF the interruptions in large
branches OF trade; which not only
speaks well for the financial condition
OF the roads, but is also evidence that
the condition Uf business, on the whole,
is not so bad us some pessimistic OBJ
servers would have US believe.
The condition Of the money market
included some very complex elements.
The arrangement OF domestic credits is
well enough understood and it will he
generally conceded that, in the course
Of few weeks, the process of repair
started by the banks may be trusted to
| work out a settled feeling and establish
o freer movement in loans. But it is
not 90 easy to estimate what may be the
outeome OF our relations with the for
eign money markets. With the present
high rates for money at this centre, it
is natural that foreign funds should
seek employment here. Such loans arc
being made. and a certain amount OF
relief is coming from that source. Even
half n million OF gold has been shipped
hither from England from those opera
tons, and in some quarters it has been
hence inferred that additional imports
Of specie will soon follow.
Tho latest advices respecting domos.
tic and foreign crops are favorable to
tho future course Of our exchanges.
The extensive failurc Of fodder crops in
Great Britain and on the continent will
naturally augment the demand for such
surplus US We may have of corn and
oats. 1t seems reasonably certain that
there will be q more or less serious
shortage OF wheat across the Atlantic
which, with u prospect Of at least an
an average surplus Of that cereal on
this side, suggests a possibility Of better
prices for it The imports Of mer.
chandise may be expected to decline
materially; and, with the probability
OF free exports Of produce, we have
therefore prospect OF q healthier for.
eign trade balance being o estab.