The Republican. [volume] (Oakland, Md.) 1877-current, 1893-10-26
FINANCIAL REVIEW.
Henry CIews's Weekly Letter on the
Business Situation.

WedTlIN WdlIS LOT lls COHCluSlOu' II
evidence were wanting of the serious
effects of this delay, it stands out
clearly in the fact that another of
our great railroad corporations has
been compelled to seek protection
in receivershIp. The statement
of the Union Pacific's finances, on
the application for receiver. is
mainly recital of the immense
losses of business pending in the
late silver depression and the pro-
tracted deferment of repeal, and it
is very doubtful whether the COM
pany would have drifted into its ac@
knowledged bankruptcy had it not
been for these drains upon its busi-,
ness.
The Union Pscific is by no means
the only one of our railroad cor
porations that has seriously suffered
from this cause, and there is too
much reason to fear that if the ST.
yer question were allowed to remain
much longer unsettled other embar-
easements may not unlikely result.
The signs at Washington, however,
are not looking brighter, and we
may be permitted to hope that the
deadly incubus Of suspended legis-
lation will soon be removed from
the business and the credit of the
country. The people are so posi-
lively incredulous that the Senate
will not dare to persist much longer
in disregarding their Enthusiastically
expressed will that their attitude is
one of impatient waiting rather than
dependency; nor is it supposed
that even were the repeal measure
to fail of adoption in the upper
house, such defeat would amount
to anything more than transient
postponement of success. In no
we'll informed quarters is the con-
tinued unlimited time issue of sill
yer money regarded as possibility,
and that confidence is an anchor
that will keep the country from
again drifting on the rocks of panic
from which we have just escaped.
The positiveness of this onfidence
is the main cause of the underlying
strength of the investment market,
which is keeping the clears" timid
about selling and induces a squirt
of buying upon any improving
changes in the posture of the Sen
ate. 1t is evident that a similar
view of the prospects of silver re-
form is taken in the foreign mark
cts for our securities. for, dlsheart-
ening as the action of the Senate
may be supposed to be upon observ-
ers at such distance, yet there has
been no noteworthy return of our
securities since the silver vote of the
house of Representatives, except in
the case of certain stocks which
have been unfavorably affected by
quite other causes.
But while this confidence in the
ultimate suspension of silver pur-
chases serves as strong support to
the market, the delay of that con-
clusion acts in many ways as drag
upon both values and transactions.
1t keeps up reservation in the
larger operations Incorporate credit
which tends to the embarrassment
of railroad finance. 1t puts obsta-
Giles in the way of the resuscitation
of important roads now in progress
of financial reconstruction; and it
throws a certain cloud of suspicion
around properties which otherwise
would enjoy unqualified confidence;
all of which has a certain effect
upon railroad investments for the
time being.
Upon business operations at large,
the position of the Senate also has
a disoouraging effect. Among the
mass of traders, the situation is not
50 clearly understood as it is in the
higher circles Of the capital, and
there, then efore, the confidence IN
the ultimate adoption of repeal has
a less positive sustaining effect.
Consequently, in the retail business.
the growing excitement at Wash
ington rather tends to suggest dis
trust than to encourage hope. But
while this much has to be conceded.
yet it cannot be denied that. in the
commercial situation at large, there
are many elements suggestive of
hope. The past disasters have
purged business of its weak points
and the basis Of credit is sounder
than it was before the depression.
Industries are resuming their sus-
pended work, and in many cases
under conditions which will weld
improved profits. Labor is being
correspondingly called into more
regular employment and the pur-
chasing power Of the working mil
lions is thereby being increased.
The increasing supply Of produts
has not sufliced to fill the vacuum