The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-08-17
WALL STREET SEES LIGHT
WEEKLY FINANCIAL REVIEW BY
HENRY CLEws 6 CO, NEW YORK.
Releasing Heavy Stocks Of Grain by the
Chicago Crash Starts 1t to Europe, For
Which Gold Will Return-pros-
poets Looking Bright.
New YORK, a ug. 5.

At last Wall street begins To see
light. During The week, few factors
have entered into the situation of a
character calculated to afford large
and permanent relief to suffering. in
terests. The misfortunes that have
befallen the Chicago spectators have
proved to be benefit to the whole
country. Their withholding of grain
and other kinds of produce from the
usual course of export for several
months was largely the cause of the
heavy drain of gold that introduced
the existing trou bies. The stringency
which they so largely helped to Gre
ate has at last compelled them to rea.
lie at ruinous losses, and their pro-
ducts are going direct to Europe and
forcing back the gold they had driven
out OF the country. Already, some
100000 of gold is on it's way hither
and still Larger amounts are expected
to follow. This is one of the reliets
that has appeared whiting the week.
Another hopeful condition has
arisen out of the heavy break in Sc
curities last week. The chance it af-
torded of buying our best securities
at 20 to 30 per cent below their aver
age price has brought out steady
stream of buying orders from London
and other European centres and the
amount exported, while not definitely
known, must aggregate many
millions in value. This again has
created large amount of bills on
Europe and contributed to the i'm
portation of gold. For the moment
this movement has somewhat abated,
partly in consequence of some recovery
in the prices of securities and part ~
owing to the Bank of England havina
on Thu sday advanced it's rate of dis
count from 2 1-2 to 3 per cent but as
all the symptoms show decided
foreign gain of confidence in our in
vestments and as that gain will be in
creased by the suspension of silver
purchases-which may now be- re-
garded as all but assured-the posi-
bilities favor a revival of these ship
ments at an early date.
Also, it seems reasonable to antici.
pate that the nav PROSTATE condition
of the great speculative interests GEN.
tering at Chicago will necessitate fur.
ther large exports of grain and pravi-
siops. With these causes contribut-
ing to swell the creditor side of our
account with Europe and with the
current and necessary future decline
in our imports diminishing the debtor
side, it is clear that we are now in the
beginnings Of change in the balance
of our foreign trade that can hardly
fail to bring to this country large
ultimate aggregate OF gold. We do
not venture to estimate what that
total may be; but among those nearest
to the heart of foreign banking opera
tions it is variously estimated at from
$25, 900, 900 to SAC, 100000 In this fact
or alone, therefore, we have ample as,
surance of an early large reinforce
ment of the reserves of the banks-ol
itself sufficient to cure the stringency
not only at this centre but also at the
interior. Other reliefs are also com
ing into play. The banks ofthis city
are making arrangements for taking
out about 100000 900 additional circula
ton, which within few days will
enable them to satisfy the urgent
wants of their country and
| Western corresl ondents. The city
savings banks have obviated one
source of danger by notifying theil
depositors that they avail themselves
of their legal right to defer payment
of deposits for 80 TO 60 days. Having
done this, there will no longer DO any
excuse for certain of their number con
tinuing to hoard large sums of money
by which they have provided agains
a possible "run" OF depositors.
Thus strongly fortified, it seems en-
tirely reasonable to conclude that 81
tar as the crisis is due to mere scarcit.
of currency is back bone is broken
Only two possible sources of obstruc
ton to the recOv cry of confidence re
main; the waiting of the verdict Q
congress on the silver question, ant
the possibility of further accident
arising from late speculative losse
and from the prolonged tension t
which business has been exposed. A
to the former, little doubt is now en-
tertained in any quarter; and, as t
the latter, the dagger will dali
diminish as the new supplies G
money become disturbed; while it j
certain that scarcely any misfortun
can befall spectators in produc
! which will not benefit the situation
ana the country.
The construction that Wall stree
puts upon these new features in tn
situation found expression Oh Wed
J nesday in rise of to 10 points il
the prices of stocks and in genera
rout of the "beal" forces. One dis
tinct sign of recovery of confidence i
the appearance Of the frugal investo
bearing sat3hel, who is notably tn
surest Interpreter of the financia
barometer. This rara avis doubl
blesses disturbed market, first b
bringing cash into it, and next b
taking securities out of it, and is a.
ways welcomed as the harbinger {
calm.
To the investing public, the presen
range of prices affords an OnnoTtunit