The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1893-06-19
speefal core.ponIene. Of lls Ileltgn,e,r.

confidence that sat in last week is still
maintained, yet a series Of small dis
turbances have one after another come
to the surface which have prevented
the realization OF any fixed and impor.
tant advance in the value OF securities,
Even the most favorable events seem to
have dark side which counteracts
their influence. The active forwarding
OF western produce for export, whilst it
has stopped tho export OF gold, has also
had tho effect of drawing very large
amounts OF currency to the interior and
tho local money market has consequent
ly become unsettled. This demand for
currency, however seems to have
passed its climax, and to.day's bank
statement is liable to show o decline
from last week in the net loss Of cur
rency, The western banks appear to
have now money enough to handle
tho grain movement, and rs TWO
months must elapse before the move
ment from this city to the west sets
in, it is within probability that, in the
course OF week or two, we may witness
some return of the currency sent to the
interior within the last two weeks; the
the more so as the west will now be en-
abled TO remit on account of postpone
ments OF payments TO the east that have
occurred under the late extreme strln.
gency OF credits. The city banks have
found some compensation for their ship.
ments OF currency westward in liberal
receipts OF money from the south aud
in gain OF cash in settlements with
the sub.treasury. The furry in thu
money market Is therefore likely to
soon abate, and may possibly BIO follow
ed by some months OF comparative ease.
Even should it turn out that the west
wants still further amounts OF cash from
this centre, the inference should be
anything but diScouraging. For such
Withdrawals mean the marketing OF
vast sum OF products, which will ease
the loan markets, diminish the tension
in credits, quicken the movements OF
trade, and relieve the foreign exchanges
by the transfer Of said products to for
eign countries.
The chief trouble in the situation is
commercial discounts This trouble
has become very seriously urgent, and
the natural tendency of the derange.
ment is toward its own aggravation.
Each denial OF discount creates an
application for discount elsewhere;
lack Of discounts in one section aggra-
Yates tho necessity for accommodation
in other sections, and thus the disease
spreads with fatal rapidity throughout
tho whole country. Such n state OF
things cannot be allowed to run long
without inviting widespread disaster.
Most fortunate therefore is it that the
clearing house has decided TO attack
this malady at its chief centre. In
authorizing the issue OF clearing house
certificates tho banks have not aimed so
much at protecting their own interests
or reserves-eXCept go far as those
might be threatened through the suffer-
ing OF others-as at making common
cause for the purpose OF extending ac-
Commodation to the commercial inter-
eSts. The trade discounting banks
arc but portion of the whole,
and yet they are called upon to bear
nearly the whole pressure OF this urgent
demand for commercial accommodation.
In similar way, the banks acting
largely as correspondents for inferior
banks are subject to an extraordinary
demand for re-discounts aud for cur
renCy from their country customers,
which greatly intensihes the derange-
ment Of credit in all sections. The Is.
sue OF certificates makes all classes
OF banks mutual supporters OF each
other and brings in the help OF the
powerful class whose accounts arc with
the large financial institutions and with
the private bankers and with tho stock
exchange houses. The action OF the
clearing housa thus places the disorder
ed credit situation under immediate
control. The Philadelphia banks have
taken a like course, and, should tho
clearing houses OF the secondary coli
tres follow the precedent, tho dangers
attendant upon the present strained
condition OF commercial credit can
hardly fail to speedily disappear, leav-
ing behind, no doubt, a general caution
and some contraction OF business, but
no longer any real danger.
The past week scores two very i'm
portant gains toward common recov.
cry Of confidence. 10 one, the action
OF the clearing house, we have already
made reference The other is in q
broad aense, still moro vitality import
ant. The canvass, made in different d.
rections, as to tho disposition OF men,
bers Of congress towards the silver
question leaves scarcely doubt as to Il
bill being passed at the coming special
session repeating the silver purchasing
clause In the Sherman act. How much
further congress may DO disposed to 90
in the way Of amending our general
currency system, so as to make II more
elastic in tho way Of automatic expan-
sion and contraction, romains TO be
been; but, so far as respects this most
dangerous feature OF the silver element
OF our money, thoro Is hardly room for
q doubt about Its being promptly olim.
mated. A larger benefit to tho country
at largo could hardly be conceived. It
IL tho doubt as to tho quality OF our iu-
turo money that has had an important
influence in causing tho return OF our
securities from abroad during the past
year, thereby deranglng tho course Of
tho foreign exchanges and producing
tho large loss OF gold that has depleted
tho reserves OF both tho treasury and
tho banks This doubt boing removed,
there would DO nothing to prevent d
general recovery Of confidence In our
securities in Europe, with the probable
consoqueCo Of q return OF much Of tho
gold wo have lost, and resulting ros
torRtion Of tho monetary strength o
the banks and general case In credits
In Wow Of those iocts, we anticipate,
from thls time forward, a steady 70.