The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-09-05
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATION
NEW YORK, Sept. 4 Henry Clews. IN
his weekly review of the course OF values
in the stock market, says:
During the past week, the financial
situation has undergone marked I'M
provemenr, and not only at this center but
throughout the county at large. Inc
bank statement of August 10Th showed
that, upon the week s average. the reserves
of the banks remained $3.50, coo below the
legal minimum: but the actual deficiency,
at the end of the week, was probably not
over 81 600, 600 Since the date of that
statement. about SlI, ,000,000 of gold has
been received from Europe, the major por-
lion of which has gone into the banks; and
the receipts of money from the interior
have probably sufficed TO Offset the ship
plents thither while the sub-treaSury has
continued TO be debtor at the clearing
house. Thus. whatever might be the
showing of Saturdays statement, based
apon averages, there could he little ques-
tion that the banks would hold, at the end
Of the week, an amount of lawful money in
excess of the legal reserve requirements.
This naturally produced a more confident
feeling among he banks, and though they
are not yet materially extending their
loans or discounts nor retiring certificates,
yet they are getting affairs into form
for giving the public the benefit
Of their improved condition at an early
day. Everywhere, the interior banks are
getting into better shape. Many of those
that have suspended are resuming busi-
ness; and bank drawings upon New York
have fallen to nominal dimensions. The
nearby country banks are appearing
again as buyers of mercantile paper, which
is significant expression of returning
confidence among a very cautious class Of
lenders. The savings banks have infor-
mally considered the propriety of offering
TO prepay deposits the withdrawal of
which has been notified, but seem 10 have
preferred TO wait until the expiration of
he 50 days notifications. The thirty-day
lerod terminated last week, the result be-
:ng that only 10 per cent Of that class of
depositors withdrew their money, The
notifications for withdrawal at the end
Df sixty and ninety days are being fast
cancelled. 1t is thus clear that il wonld
he quite safe for the savings banks to
make the suggested offer of prepayment:
and that fact suggests probability that
these Institutions may soon begin TO re-
turn more or less of their cash funds to
the custody of the regular banks. The
dealings in currency have virtually ceased
and the prem um uDon it has virtually
disappeared; which is evidence on the one
aand of the cessation OF boarding aud on
the other Of freer disbursements in money
ut the banks. The foregoing facts afford
the best possible evidence OF Lne return of
monetary and banking affairs 10 an APP
proXi;aately normal condition.
The great event of the week, and the
pne which More than anything else has
contributed I o this important recovery has
been the overwhelming vote OF ;he house
of representatives against any Increase in
our silver currency under Jhe Sherman
saw. That is IN immense gain towards
,
no circumstances, viii this country to!er-
ate any loose experimenting with this form
of money, but viii insist upon it as fixed
policy that gold shall be the national
standard. This restores to the national
credit rock foundation that will save il
from such shocks as it has lately sustained. |
IT p lso carries the advantage OF dissiDating
the doubts among foreign holders of cur
which baye sent home probab bIv |
$50, ,000, eco Of them since the Sherman act |
iook effect. Mondays vote, carrying with
Il the certainty Of Ike action by the SEN
Rte has been followed by steady stream |
of buying orders for stocks and bonds from
London. Frankfort. Amsterdam and Paris |
The extent of these purchases may be in /
ferred from the fact that, although some !
: IA, ,000 coo of sterling bills borrowed sixty !
days ago have matured within the week. |
yet the rates Of exchange, instead of being |
thereby adversely affected, have been weak !
and veTgiDg on bhe specie importing point |
1t Is to be presumed that in Euroae rs /
well as at home, there is among cautious /
Investors disposition to defer buying |
until the solution of the silver question is !
placed beyond all question by the vote of !
The senate. IL is therefore TO be expected |
that further purchases on foreign account
viii be forthcoming when the senate has
voted.
This common advance out of the
slough OF des pond'' has revoIutioniZad
'he tone Of feeling in Wall street. The
first effect was IA rush to cover short sales.
aud the next a return to the street of a
class with ample means for taking in bar
gains. IL has been IN the best sense a
week for the bulls, who now are once more
In control Of the market. Bnt for the oc-
rurreace OF two great cyclones within
lew days, with vast destruction Of property
Rrd the interruption of telegraphlc com
with all parts of the country.
the effect would have been still more
marked; II has resulted, however. N
general advance OF several points in prices !
The market has now reached a point m
Nhich II may he expected to .e sustained
by sturdy and continuous inprOyefoaur
u he conditions that Influence values
As confidence spreads through business
BUR interrupted industries will resume
work, depicted stocks OF merchr ndlse VIII
,D ioliehiShtu, anu the Catchlng uD of
.hree months OF lost trade vii, cause A re.
ilsing spurr of activity This coInmercjal
'ecoveTy viii show its results in increased
earnings OF The railroads. and the who.e
country viii return by n steady and sure
process, u not 10 Il normal activity
hlCh Is too much To expect SO soon after
'nch utter prostration.-ye to a moderate
ma conservative movement such
,hange carries with il legitimate reasoDs
or rise from the present very exceptIop-
NY low prices OF securities, and we there.
ore commend to our friends the policy Of
DhyihE upon ali drops IN quotations"