The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1893-06-16
MANKATo FREE Press.
FRIDAY, JUNE 16. 1892.
HENRY CLEWS ON THE SlIUA-
TION


In his weekly financial review OF
the situation. Mr.. Henry Clews notes
that there has been considerable OF
an improvement in the tone OF ousl-
ness in Wall street during the week,
occasioned by the formal intlmatlon
of President Cleveland that he Will
convene congress in September. MI
Clews thinks the announcement
leaves no room for doubt that the ad-
ministration favors the suspension of
silver purchases, and also that the
fact Mr.. Cleveland will call congress
together in September, presump-
tion CT his faith that congress will re-
ceive fayorably his recommendations
n this respect. He further says:
Thus far, the effect of this official
intervention has been not only mega
tive, in staying the further progress
of the prevailing decentralization, Dut
also positive in restoring commence
in a considerable degree. Inc eHect
in the specially disturbed districts OIL
the west is especially Important. Al
Chicago, there has been a complete
cessation of the run of depoSltors
upon banks and savings banks, ana
business there is resuming compare
tive normal aspect. OF course, the
public have, from late experience,
come to regard the effects OF our sill
yer blunoering as so fundamentally
important that they are unwilling TO
be entirely satisfied with hopes or
those errors being corrected, and 1t
may consequently be expected that
creditors will be kept within conser-
yative limits until The actual meeting
congress reveals some tangible lndlca-
tiOnS of the prospect.
The Presidents action has had a
conspicuously favorable effect upon
our interests in the foreign financial
markets. At London, our securities
have shown a distinct response, which
however has not yet had its full effect
on prices, simply because New York
failed to respond Immediately and
equally to that improvement. The
effect upon the foreign exchanges
has also been very apparent. Although
considerable shipments Of gold
had been anticipated for this week,
the amounts actually sent out have
proved to be comparatively light; and
it now looks as though the outflow
was nearing it's end. The unexpected
reduction Of per cent in the Bank OF
England rate Of discount comes in as
an important contribution to cOnn-
dence: for it not only shows recovery
of SteadineSS in London finance but is
favorable to the employment OF for
eign balances at this cent ter and there
fore to a curtailment of the foreign
demand for our gold. Another factor
tending to the same result is the large
export movement in grain that has
set in within the past ten days, which
from all appearances is likely to as
sumo still more important dimensions.
A point has been reached at which
spectators have neither the motive
nor the ability to hold on to their
large stocks Of produce, and cOnSe
quentIy engagement for export have
been made which will occupy all
available ocean freight facilities up to
the middle of July. This may be eX-
pected to settle the question of fu-
ture shipments of gold, if it does not
suggest probability of retluX of that
metal to this center at no very dis
tant day.
There can be no question that the
withholding of an enormous amount
of produce from it's natural course OF
export has been one important cause
of'eXtreme stringency of money at the
interior. Now, the forwarding Of
these products to the seaboard is caus-
ing a large drain of currency to the
West,-the Chicago rate of exchange
on New York being S1.25 discount;
which will prove quick source of
monetary relief in the agricultural
sections. Of course, one incident of
that movement will prove to be con-
siderable reduction of che reserves of
the New York banks; but that can be
well afforded with the present large
surplus of cash over legal require
ments; and especially as the same
cause that is drawing money to the
interior will correspondlngly prevent
the withdrawal of gold for export.
Upon the whole, we take it that the
situation has entered upon stage Of
very decided intrinsic improvement;
and we anticipate that this recovery
will become much more apparent
with each succeeding day for pro-
lOnged period.