The Republican. [volume] (Oakland, Md.) 1877-current, 1893-08-17
FINANCIAL REVIEW.
Henry CleWS' Weekly Letter on the
Business Situation

NEW YORK, August 12.-So far
as respects the investment markets,
the past week has shown an i'm
provement IN both conditions and
prospects. The working of the
stock market has afforded clear evil
dence that the point of lowest de-
preston has been reached. Under
the worst conditions of demoraliza-
tons there is always level of prices
at which investors-eitner domestic
or foreign, or bOth-will become
buyers, and it is a matter of ocular
demonstration that that force has
now come in to sustain the market.
The orders to buy from this class
form a background of support upon
which the "bear" attacks make lit
tie or no impression. Their sales
are so far taken up by Investment
buying that, when they want to
borrow shares or cover their sales,
they find themselves more or less
"cornered." Their operations are
therefore confined to few of the
least supported stocks, out of which
they seem satisfied to earn their
daily salt. 1t is no small gain to
legitimate business that the flibus-
tering of the raiders has been thus
brought under check; for it is the
first step toward a rise to be assured
that decline has touched its "lowest
deep"
The stock market has to con-
siderable extent broken loose from
influences that are still depressing
general business. The extreme
scarcity and continued boarding of
money has little direct effect upon
stock exchange operations. That
kid of business is done without
the direct Intervention Of cash; and
as the banks can lend on stock loans
without parting with currency they
give certain preference to stock
brokers, especially as their col
lateral, at the present low prices,
form good security. Members of
the exchange therefore find no diff
Guilty in borrowing at bank at sac
per cent. on call, while other i'm
portant borrowers have to pay 1O@
II per cent. for the insufficient &C
commodation that can be afforded
them. This returning ability to get
loans enables holders to protect
themselves and makes Wall street
less sensitive than other interests to
the adverse course in which events
are still running.
The week has on the whole con-
tributed some important reliefs to
the general situation. 1t is true
that there is no abatement of the
common dearth of money, and none
in the large demands of the interior
banks for help from the metropolis;
the banks, indeed, are as much
pressed as they have ever been. so
much SO that they are compelled to
refuse currency to outside applica-
tons, and have advanced rates to
almost prohlbitory figures; which
simply means that point has been
reached at which they can no longer
afford to be generous but must
stand for their own protection.
But, at the same time, the fact that,
by the end of next week, nearly
twenty millions of gold will have
been received from Europe, while
some twelve millions of new bank
circulation will be IN the course of
issue cannot but have an important
effect in relieving the scarcity of
money and thereby restoring conf
dence.
Some relief is also felt from the
fact that Congress is at last brought
face to face with the great silver,
danger. The message of President
Cleveland was such strong vet
simple presentation of the case as
to carry to all classes deep convic-
ton of the danger in which the
Sherman act has placed the country,
and the consequent necessity for
Immediately repeating the ohnox-
lous clauses of that law. The Presi-
dent having thus broadened and in
tensltied the public hostility to sill
yer purchases, it seems reasonable
to assume the impossibility of Con-
gress failing to satisfy this uniyer-
sal demand. From such SYMPTOMS
at the capital as can be traced amid
the confusion of party maneuvering,
1t appears quite safe to assume that
Congress will ultimately adopt an
unconditional withdrawal of the
authorization to purchase silver.
That Is the sole sine qua non to the |
restoration of confidence and pros
perltv; and the country would like /
to know lt-and the sooner the bet 1
ter-lf 1t Is possible that Congress
of the United States could be can T
able Of refusing a measure SO finn 1
damcntally vital and demanded by /
-V,,h