Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-06-21

which will ease the loan markets. dimi-
nish the tension In credits. quicken the
movements Of trade, aud relieve tho for-
eign exchanges by the transfer of said
products TO foreign countries.
The chief trouble IN the situation is
the continued extreme strlngenry in COM
iucrcial discounts. This trouble has no
come very seriously urgent, and tho
natural tendency Of the arrangement II
towards It's own aggrnvntiOn. Each do
maj OF 4 discount creates an application
for discount elsewhere; lack of dis.
counts III one section aggrayates the
necessity for accommodation In other
sections; and thus the disease spreads
with fatal rapidity throughout the whole
country. Such state of things cannot
be allowed to run long without inviting
widespread disaster, Most fortunate
therefore Is il that the clearing house has
decided 10 attack this mnlndy at its
chiet cenicr. In authorizing the issue of
clearing house certificates, the banks
have not aimed so much at protecting
their own interests or Neutrality-suspicious. "A,
far as those might be threatened through
The suffering of others.-as at making
common cause for the purpose of extend
ing accommodation TO the commercial
interests. The trade diseounting banks
are but a portion of the whole, and Yet
they. are called upon to bear nearly The
whole pressure of this urgent demand for
commerchll accommodation. In a stint
lar way, ihe banks acting largely as cor
respondents for interior banks are sub
Ject to an extraordinary demand for
redisc0unts and for currency from their
country customers which greatly intcn-
slhes the arrangement Of credit In all
sections. The issue of certificates makes
all classes of banks mutual supporters
Of each other aud brings in the help of
the powerful class whose accounts are
a. al 4
with the private bankers und2stock ex-
change Houses. The action of the clear
ing house thus places the disorlcrpd
credit situation under immediate control.
The Philadelphia banks nave taken a
IKE coursci and, Should the clearing
houses of the secondary centers follow
the precedent, the dangers attendant
upon the present strained condition of
commcrriHl credit can hardly fail to
speedily disappear leaving behind no
doubt general caution and some contrac-
ton OF business, but no longer any real
danger.
The past week scores two very i'm
portant gains towards common recovery
Of conhlance. To one the action of the
clearing house we have already made
reference The other Is in a broad sense.
stu moe vitality important. The can
Nass, mndc in different directions, as 10
the disposition of members of congress
towards tho silver question leaves scarce
~ doubt as TO Il bill being passed AT
the coming special session repeating the
silver purchasing clause in the Sher-
man act. How much further congress
may be disposed to go in the way of
amending our general currency system
80 us To make 1t more elastic in the way
OF automatic expansion and contraction,
remains to be SEEM but, so far as re-
spects th,S most dangerous feature of the
silver element of our money there is
hardly room for doubt It's being PROMPT
~ eliminated. A larger benefit to the
country ~ large could hardly be CON
relved. II is the doubt as to the uunlity
OF our future money that has had an
important influence In causing the re-
turn of our securities from abroad during
the past year, thereby derdnging the
course of the foreign exchanges and pro-
ducing the large loss of gold that las
depleted ihe Reserves of both the treasury
and the banks. This doubt being re-
moved there would be nothing TO pro-
vent II general recovery of confidence in
our securities in Europe. with the prob
able consequence of Il return of much of
me gold we have lost and resulting
restoration of the monetary strength of
the banks aud II general ease In credits.
In view of these facts. we anticipate.
from ms time ON, n steady recovery of
confidence, which will gain in strength
with the course of events and the an
proach of the assembling of congress.
rms prospect may not produce any i'm
mediate eAtrlyagant recovery in prices
of securities, but it will very legitmately
strengthen the feeling of holders and
should hold the pessimist operators In
check. HENRY CLEWS