The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-05-24
The FINANCIAL REVIEW.
New York Banks Strong, and Money
Coming In From the
Interior
STEADY Course Of the Money Mar.
kst = Predicted for Some
Time.

Erect Of the Late Crash On Stock specuIa-
sers-Enset Of the InfiAtise Asss-
sistsd With Trusts.
NEW Yonx, May 28.-The last eiveulaR H.
sued BY the banking houss Of Henry CIewa
4 Co., II. Is and IL Broad street and 10
Wall street. says: The opinion expressed
In our last weekly advicss that the dei fss-
sion had touohsd its lowest point his been
cosArmel BY the COURSE of the market dur
Ing the past wesk. Tho last bank state
ment. showing . gain Of over hvs milIiosa
In the surplus reserve and IN excess IN snAs
item ovsr the Agsrss Of like date for either
Of the last two years. was the hrss faos g
firmly arrest the prevailing disqualification
II showed mot only shat the banks wsrs - 9
strong position, but that q free indax Of
msnsy from the interior had Vt In saleu-
lated 70 farther strengthen their position
~ . lasev stage. In the state OF ahaiTa
thss existing. this was the one thing needed
20 restore confidence. II meant that No
good borrowers. whether financial OF msF-
camille, need longer suffer from lack Of sc-
co~mmodation; and ~ st0cks were selling
lower than ut any time since ths Barring
disnstsr, there could be NO question % 70
their being . sound collateral. sxospttnR
the "industrials." This condition of the
reserves also molliAss any apprehension
that may still exist % to the possibility Of
further exports Of gold draipipR The re-
sources Of the banks. The lstteS Eaovs-
nent has. for the moment. .
more sssu ing look; the shipments
of the past week having been
lighter than was generally expected. Fur
Their failures Of banks In Australia have.
however. suggested the possibility Of sons
drain from London on this market; bat IL
IL felt that such wants - are likely to arise
in that quarter can bs met without any
serious strain. II would seem that No geld
oan b sent TO Australia except what, may
be needed for purposes Of Temporary help
to embarrassed banks; and the suspended
banks are owing . large portion Of their L.
posits to British creditors, whose with
drawals may be expected to largely Offset
any cash aid sent from Londop.
60 far ~ the late condition Of the stock
market has bssn due to purely banking and
monetary eausss, il 10 now relieved from
that particular source Of pressure. and We
may count upon q reasonably steady course
oil the money market for lone time ahead.
This 10 an important contribution TO the
recovery Of %conhdsnse; bat there 10 . limit
TO the encouraging %infsrences dedusible
from ii. II means that whoever may BE-
ON investment or for transient holding upon
good margins. may do % with . ~Ysasonabls
. aspect Of coming out or the right side.
hut il does not mean thet We may expect
an extfavaaant upward reaction IN So
ourities generally.
II will be wise for operators 10 realize
how violent ID the wrench caused BY The
b.eak Of tho "indussrials." and how wide
its effects have bssn and how long those
effects may continue. That cash has
driven out Of the Darkst . large portion of
che outsiders who have besn operating in
those stocks. md few OF them have any
thing left for rosuming opsEatiens. IL has
that GLASS of props ties. and IL has made
lenders cautious about making large ad-
vapoes ON them. Time alone can serve to
heal thi, shock and to bring bnok 10 Wall
street capital o ekiue temporary. employ
mont in securities. For some time still.
the dubious conditions viii be exaRge.ased
and the hopeful ones will b subjected to .
pessimistio discount. There 10 . lesson Jet
TO be learned by tho public about the ''ir-
dustrials," tho moral of which will act ~ q
lonR-prot, acted caution about the future
employment of capital. A. the procsss Of
invsstigation into and repair Of the crippled
~''combines" goes on, it will be found how
utterly rotten has been the basis Of their
o .~Ranization and their methods Of conduct
ing business: and whom it Is reflected how
many industries aAd how many hundreds
OF millions OF commercial capital have
fallen under the vicious control Of
this rotten0prinoi ple OF Organizations.
then will come q second stage OF oissrust
towards these institutions, more dangerous
even than this first. for il will BE- the stage
of disintegratton and dissolution. Whom
that stage comes, however, We may look for
a restoration Of natural conditions among
our industries ~ large. But. daring the
interval. these doomed Institutions will re-
main . source Of industrial distrust the In
fusnce of which will be unwholssons.
There can be NJ doubt that the imitation
associated with these .trsst' organizations
has infested industrial operations In quite
other directions. The spectacle Of tho
enormous Wsll street speculatiens In the
''cordaae" ''whisky." etc.. combines, has
Of private firms upon . basis Of imitation
which casnot stand tho test Of experience
and the strains to which credit 10 periodi-
cally subject. Banks and bankers have
been subservient TO these creations; and
the result has been apparent in the failures
Of interior banks and tho malfsasaness of
corporate officials which have shocked The
country for tho last two or three weeks.
Reference IL here made to these condi-
lions Of industrial imitation, because they
constitute . phase of things Of which little
note has been taken In accounting for the
present state of affairs in Wall street, and
also because they stand connected with
certain aftsr-effsets Of eke crisis which
must hang around tho investmsnt markets
fer some time to come. A. the same time.
while giving due weight TO these elements
of arrangement. We must nsvos lose sight
Of the immense rscn. o. ative power Of
American RESOURCES and Of tho .%Quiekness
with which our people dsteot their mis-
takes and throw overheard false msthods.
The lesson Of the "industrials" 10 already
sinking deep into The mind Of our ,sople;
and the next phase Of investment and spec
ulative movements will be - lot all suoh
enterprises severely alono. and give The
more attention to the things that are
''honsst and of good report" This sort of
discrimination will soon perceive that oar
railroad stocks. ut current prices, are An
exceptionally good investment; and nt no
distant day, both HON and 10. slgn invest.
ots will take OF the market an amount of
those Issues shat will restore values and
confidence At the snmo time. Whilst.
therefore. . buoyant restoration Of speeu-
lative activity 10 not TO DO expected. 10 IL
reasonable TO lock for the coming forward
NJ Aha o0naAYvafive men ~ mama -ko