The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-08-15
CIFWS ON FINANCE.

NEW ORR, Aug. If.-fieury Sic"S, AZ
i.is weekly financial circular, says:
$50 far rs respects the Investment mar
.sets. the past week has shown IN improve
;Ment in both conditions and prospects.
The working of the stock market has
afforded clear evidence that the point OF
lowest depression has been reached. Under
the worst conditions OF decentralization,
there Is always level Of prices at which
investors-either domestic or foreign or
both-yyill become buyers, and 1t is mat
ter OF ocular demonstration that that force
has now come in to sustain the market.
The orders to buy from this class form
background of support upon which the
hear attacks make little or no Impression.
Their sales are so far taken up by invest
ment buying that, when they want to bor-
row shares or to cover their sales, they find
themselves more or less cOrnered. Their
operations are therefore confined to Il few
of the least supported stocks out of which
thev seem satisfied o eHrn their daily salt.
] is no small gain to legitimate business
that the reckless filibusterug of the
raiders has been thus broug ght under check;
for it Is the first step towards "A rise to be
assured that decline has touched its lowest
leep.
The stock market has to a considerable
extent broken loose from influences that
are still depressing general business. The
extreme scarcity and general boarding OF
money has little direct effect upon Stock
exchange operations. That kind of busl
ness is done without the direct interyen-
ton of cash. and as the banks can lend OH
stock loans without parting with currency
they give a certain preference TO stock
brokers, especially as their collaterals, at
the resent low prices, form good security.
Members of the exchange therefore find
no difficulty in borrowing at bank at 5T6
per cent on call, while other important
borrowers have TO pay 10Cd IL per cent for
the insufficient accommodation that can
be afforded them. This returning ability
10 get loans enables holders To protect
themselves and makes Wall street less
sensitive than other interests to the ad-
verse course in which events are still run
ning.
The week has or the whole contributed |
some important reliefs to the general stu !
alton. IG is true that there is no abate- |
lnent 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, much SO that they are |
compelled to refuse currency 10 outside |
applications, aud have advanced rates TO |
almost prohibitory figures; which sim
ply meaES 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 $50, 900, 600 of gold will |
have been received from Europe while |
some ST., 600 600 oil new bank circulation
will be in the course of issue, cannot
but have an important effect in relieving
the scarcity of money and thereby re-
storing confidence.
Some relief is also felt from the fact
that congress is at last brought face to
face with the great silver danger. The
tn 3ssage of President Cleveland was such
Ia strong yet simple presentation of the
case as to carry to all Glasses deep con-
victlon Of the danger i'll which the Sher-
man act has placed the country, and the
consequent necessity for Immediately re-
pealing the obnoxious clauses Of that
I ". The president having thus broad
ensd and intensified the public hostility
O. o silver purchases, il seems reasonable
10 assume the impossibility of congress
failing to satisfy this universal demand.
From such symptoms at the capital as
Eau be traced amid the confusion of par
~ maneuvering, it appears quite safe to
assume that congress viii ultimately
adopt an unconditional withdrawal of the
to purchase silver. That is
tue sole sine qua non To the restoration
of confidence and prosperity; and the
country WOUlu ike TO Know lt-and the
sooner the better-if it is possible that
capable of refusing measure SO funda-
vital and demanded by such an
overwhelming majority of the people
''It is much to be hoped that this con-
ciusion may be reached with the least pos
slble delay, and that the discussion of the
question may not be delayed by mixing
with it non-essential issues After the
main question has been decided, there are
o. her financial problems. that would nat
urally arise out of the suspension of silver
purchases, which congress might well con-
slider. Lest the sudden cessation of large
supply OF silver money should result in the
evils of contraction, lt Is necessary that
some provision be made for new issues OF
from some other source. In or
der 10 provide against that Inconvenience.
means should be devised for an increase in
the national bank circulation; and, 10
meet the emergency, IL might suffice, for
at least The present, that the national
banks be authorized To issue notes up to
the full face value of the bonds deposited
Rs guaranty. This would allow of Il large
Increase IN the circulation; and if further
expansion should be found necessary ii
could be provided later by other means !
Experience has shown the necessity of pro.
vIding some resource by which the treas
ury could protect Itself and the public
from such emergencies as have recently
ccurred and still exist. For that purpose
II seems advisable that congress should
the issue of per cent bonds bv
the secretary of the treasury. with the
consent OF the president, payable at pleas
nre after ten years, and TO be used to pro-
vide for any obligations of the government
la periods Of financial difficulty These |
measures seem necessary supplement- TO
-he suspension of silver purchases; bat
other financial legislation may well be left
ior later and maturer consideration This
being done, the situation will be cured !"
w WY y