Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-05-11
THE FINANCIAL SITUATION.
a General shaitiness, Due to Apprchsn-
sipns of Change in the standard OF
Value, in Consequence of the sherman

sipns of IA Change in the standard Of
Value. in Consequence of the sherman
Silver Law.
New York Evening Post.
The shalty condition Of the Stock Elk
change at the present time is merely u
reflex of the shakiness of general bust
ness, and this is due to apprehensionso Of
achange in the standard Of value in con.
sequence Of, the Sherman Silver Law.
President Cleveland has done every
thing in his power to quiet these appre-
tensions He has declared that all the
resources Of the government will be EN-.
ployed to keep all kinds Of government
obligations at par with gold. There Is
not shadow of doubt that this will be
done Yet the business community is
in doubt whether the government can
carry out this intention underali circnm-
stances. Consequently those who have
ready money are disposed to hold on to
it until the situation becomes clearer.
This feeling hampers the banks as well
as private lenders. In other words,
| credit is shaken, and by consequence
| the weaker and needier borrowers are
pushed to the wall. II is the duty of
| the banks TO take care of their own
customers first. This they will do to
| the extent of their means. But there Is
q class Of traders who rely upon note
| brokers-that is upon the open money
market for accommodation. These are
| first TO feel the pinch, and these are
they whose failures we have to record
| with painful frequency. 1t is easy to say
| that these houses have been too mucn
extended. They would be able, never
theiess, to go on in ordinary times.
| Their default Is due to an artificial CON
dition of the money market. There is
money enough for all Legitimate under
takings, but the holders Of ready money
are not willing TO part with it until they
see more clearly What the future has in
store.
II is the fogginess of the atmosphere
(the inability Of the most discerning TO
see where they arc,l rather than any as
certainGd facts, that causes the trouble.
The situation has been SO complicated
and twisted by successive acts Of Con.
gress,each one without previous example
in the worlds history, that there is nc
clue that CAN be safely followed. Thu
best index, though not an infallihlt
one, is the relation Of the government
receipts to its expenditures. AS ",
have previously pointed out, the rea
struggle of the treasury is not to proven
the expectation Of gold, but to pay it
own daily bills 1t has no more to d.
with gold exports than with cotton eX
ports. IL has to do exclusively with tn
balance Of public receipts and disburse
meutS, Included in these are the dis
burscmcnts for silver bullion, which di:
burscments may or may not be reCoupe
by the public. 10 the extent that tn
monthly supply Of treasury notes is re
, tanned in circulation the treasury is RI
coupei. 10 the extent that these note
are presented at the sub treasury for IT
: demption, or at the custom house i
Q payment Of duties, or at the intcfni
G revenue office for taxes, they are
c burden and an outgo to the treasur,
6 The only guide we have is the period
. cal treasury statement, but this must |
. corrected BY the inflow and outflow {
D treasury notes, which is reflected in IL
< state Vi the gold reserve.
5 Our Washington advices point to a
c increase Of government receipts and I
Y a probable surplus at the end Of ii
Il fiscal year dune 30ta) Of S2,00O.O0O I
e S1O,0OO,OO0. This means surplus
y ordinary receipts over ordinary di
c burscmcnts, not including purchases
G silver bullion. The uncertainty of I'll
IS latter element is therefore the only thir
9 that creates fog and obscures the hoi
q Hon of the business world and caus
e failures that would not take place und
|, ordinary conditions. 1t is this whit
}. produces the tightncss in money {
il much complained Of west Of the Missi
1t sippi river. liz that region the silver di
l. ease has the largest percentage of vi
Tins. Ihe more silver we have and h
more il cncroAchcs on the gold resery
=, the tighter the money market becom
Il in that quarter, and the louder becom
~ tile demand for more silver. These pc
ii pie coniound capital with money, al
il think that u great supply Of the latt
/ would produce a corresponding supp
Sa of the formcr-a conception us absu
n us to suppose that large supply
r wagons and wheebarrows would pr
"a duce ponding supply Of goods
be transported. They are, perhaps, II
-, TO be blamed for falling into this ere
= they have had such bad education,
~ far as Congress could educate the
= during the past 80 years. They in,
ss unlcarn these bad lessons by experien
II and there is prospect that they "
= gain the necessary experience duri
80 this Columbian year, the adVices Of
H. mercantile agencies from that regi
y being Of rather Il gloomy character.
i, times of uncertainty capitalists lie
Ia only on nearby security, preferably
~, call. The pinch comes first on the me
y distant enterprises. This is the reas
j. why the trans Mississippi country a
4, silver-producing States are now 50 sh
~ Of ready money.
of 49, 5,g,