The Republican. [volume] (Oakland, Md.) 1877-current, 1893-12-14
FINANCIAL REVIEW.
Henry Clews's Weekly Letter on the
Business Situation

| dency Of prices has been downward
Rthe last few DAYS, chiefly because Of
a disposition to take profits lnsti-
| gated by the Introduction of the
Wilson bill which had an unfavor-
able effect simply because of the
unusual sensitiveuess of the bust
ness world to tariff agitation. The
prospect of this agitation contilu-
ing throughout the winter ana we'll
into the spring is of course dis
heartening to many; but these fears
are greatly exaggerated, and it is
safe TO say that the bill as now pre-
scnted will be amended to such a
degree as will make changes much
less radical than anticipated. I'm
favorable rumors about rate cutting
by important roads also affected
prices adversely. Europe, more
over, is at present not inclined to
invest largely in our securities.
The marvel Is therefore that prices
have shown such remarkable r, sist-
ing influences; and this can on BE-
accounted for by the fact that the
worst has been passed, and everv-
thing adverse likely to happen am
| fSIy discounted. Prices in most IN
stances are certainly down to con.
sentative figures.
There has been no increase in
the supply of railroad securities,
and the recoguiz cation which many
large properties have gone through
gives them promise of a future
value which has much to do with
the present resisting powers of the
market. Weak holders may fail
and then stocks be forced upon the
market, but the far-seeing and per-
sistent holders are pinning their
faith on the future, and not on the
temporary setbacks of 1898. Bust
ness, in spite of dizziness, is revlv-
ing. Railroad earnings are rccov
ering and making better compari-
sons than month or two ago.
Large economies are being effected
Oh all lines, and net results are not
approaching the decreases IN gross
Railroad shares sympathize but
slightly with the industrials. which
more directly feel business dcpres-
sion and tariff discussion.
The Presidents message pro-
duced no distinct impression on
Wall street interests. 1t was re-
garded as, on the whole, moder-
ate document, containing no new
points of policy, but indicating a
purpose to execute the understood
purposes of the party with what the
President concelves to be conserva-
tism. His recommendation that
the currency question be allowed to
stand over for future treatment oc-
casions some surprise, and its pru-
dence is viewed with differences Of
opinion. Undou btedly, it is out Of
the question to consider and dispose
of AL the currency and banking
problems that await treatment; and
to that extent the Presidents posi-
ton seems to be very generally APP
proved. But it is regarded as an
important matter If the country Is
to have no assurance of elasticity in
the currency when the money now
transIently accommodating IN the
banks has been redistributed for
circulation. Certain of the pro-
posed changes IN financial arrange
ments may require some specific
preliminary consideration before &C
ton is taken upon them by Con-
gress; and, for those purposes, the
institution of "a special commission
might be desirable. But the coun-
try is already so familiar with bank
note issues and so well cautioned
by experience against faulty con-
ditions of issue, that there should
be no difficulty about providing a
sound and elastic system Of note
issues during the present sitting of
Congress.
The market has been taken by
surprise at the advance in exchange
to about the specie-shipping point.
Yet it is no more than might have
been expected from the present ex-
traordlnary abundance of money.
Foreign balances resting here can
be better employed at home and
they are therefore going there.
There is no apparent reason how
ever, for expecting that any large
amounts of gold will be shipped.
"A few millions sent to London and
Paris will stlffen the rates for loans
at New York and ease them abroad,
and the equilibrium thus produced
will neutralize the motive for ex-
porting gold. The banks will hail
movement of this kind, for de-
posits are being crowded upon them
far beyond their ability to turn
them to profitable use.
HENRY CLEws.