The morning call., 1893-11-01
REPEAL'S EFFECT.
Confidence Is Restored by
the Bill.
FOREIGN CAPITAL COMING.
Banking Men Give Their Opinions
on the Silver Repeal Bill and
Congratulate Themselves.

Financlers and bankers felt that load
had been lifted from their shoulders yes
terday by the silver repeal bill. Their
conversation almost unanimously assumed
hopeful tone that clearly betrayed new
confidence in themselves and the people.
1T Is the dawn of new and better era"
said one of them significantly.
As rule the men who preside over the
destinies of San Francisco's banking in
stitutions accept the repeal as benefit to
finance, industry and commerce. How
ever. there is some divergence of opinion.
and that principally toward a belief that
the bill is at least a step in the right direc-
tion. Those who hold this opinion are not
backward in expressing it as conviction.
and also that the tariff be either left alone,
or tariff reform definitely settled before the
country an feel full glow of prosperity.
'The repeal bill took nobody by, sur
prise" said the president of the German
Savings Bank. 1--WE knew what was
coming, and it was discounted week ago.
1t will have an excellent effect. For in
stance. it will bring out great deal or
gold from safe-deposit vaults and stock
ings. or wherever gold is boarded. People
were afraid and kept money hidden away
until the repeal bill would be passed. The
effect on savings banks is this: money
will be deposited because people know
they will be paid back in gold coin instead
of deprecated currency. which would
have been the cas- with silver on its old
basis. The savings banks will be able to
realize easily on securities on account OF
an inevitable flow of money from foreign
countries into the United States for in
vestment here. 1t will restore confidence
to large extent. We are glad to see re-
peal"
II think it will have a very beneficial
effect" said l. W. HellmaD, president OF
the Nevada Bank. 1T will tend TO re-
store confidence, which is wanted more
than anything else now. Ii the bill had
not been repea ed we might have exported
a good deal of gold. and the reverse is now
the case. One million dollars lef. London
yesterday for New York. think foreign
ers. frightened that we would pay their
investments in silver, are Dow satisfied
they will be paid in gold and they will
make large investments here again.
II believe now If the tariff is ]udiciously
reformed by next spring we'll have very
good times in the United States.
"Repea al can only affect us beneflcially
locally as far as | can see. In our exports
people will buy more of our produce and
we will get better prices for it. With
stagnaton existing all over the country 1t
couldn't be expected much business would
be done. This is changed now and prices
ought to be better. l am salts
fed that the money market, by con-
easier. Money is easier. Our banks
have not taken advantage of the strin-
geney. Interest is not high here, and none
of the commercial bank refuse to accom-
modate clients. Relative values between
gold and silver remain the same. Money
has Ot been more pleD iful for long time
than at present. I'm firmly of the opinion
~. h~t hatt -tn mi
legislation than with it, Supply and de-
mand will control its value. l believe in
double standard. but that can only be ar
ranged in the monetary conference be-
tween the nations, and L hope that later
on something will be done to form this
standard"
THE main thing to get out of the way is
the tariff" said Thomas Brown. cashier of
the California Bank.
'Manufacturers are stopped up and don't
know what to do in its present unsettled
state. The repeal bill Will make securities
better, and the natural tendency will be a
further depreciation Of silver. In the last
few days it has declined cents. and what
the ultimate effect may be is only mere
guess to-day"
Congress has delayed this matter too
long to do any good" said p. n. Lilienth al
of the Anglo California Bank. Il think
it will fall fiat. Money is easy enough.
L
reserve in excess of legal requirements
than to-day, and that was in 1885"
Repeal will restore confidence" was
suggested.
II don't know what will absolutely do
it. but one of the most important factors
will be decisive action on the tariff, either
putting an alteration into force or stipu- !
latlDg not to touch tariff for two years. |
Repeal has had the effect of making silver |
very sick; it is down to IS to-day and will |
be 65 in January.
"We never can have a return to pros
perity here until the tariff question Is set
lied. Il is one of the matters that trouble
our manufacturers and importers. Money
Is accumulating in London and New York
and is extremely cheap, being about II per
cent per annum. Things are easing up"
"For present purposes it bet;ers the sit.
uatiOn materially" said Lowell White,
cashier of the San Francisco Savings
Union. "and that by restoring confidence.
Even here money was locked up on ac-
count Of the silver scare. European
money was drawing out because foreign
in vestors got afraid they would be paid in
silver. This has been going on for years
During the crisis attempts were made TO
secure European money for use here in
loans on real estate, but no contracts to
loan here would be made till the silver
question was disposed of. Only for it
large loans would have been made by
local banks to help the situation. Taxes
are due this current month, and savings
banks must make provisions for payment
of dividends in January in an unusual de-
gree. Prudent bankers are max ng prep
arations for dividends on a large scale, aud
this will prevent loaning till about Febru-
ary Repeal will restore confidence, take
money out of the safe deposits, and we re-
gard it as final that the pressure on savings
banks will be removed on this account"