The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-08-17
TIMES GROW BRIGHTER.
FINANCIAL REVIEW OF HENRY CLEws
& co. OF NEW YORK.
Past Week Shows Vast Improvement III
the Stock Market, and Financiers De-
clare that the Lowest Level Of De-
preston has Been Reached

spects the investment markets Che paeO
week has shown an improvement In
both conditions and prospects. The
working of the stock market has al
forded clear evidence that the point
of lowest depression has been reached.
Under the worst conditions OF demor-
alization there is always a level OF
prices at which investors-either do
mestic or foreign or both-will become
buyers. and it is matter of ocular
demonstration that that force has now
come in to sustain the market. The
orders to buy from this class form
back ground of support upon which
the "bear" attacks make little or no
impression. Their sales are so far
taken up by investment buying that,
when they want to borrow shares or to
cover their sales, they find themselves
more or less 'cornered." Their opera
tions are therefore confined to few OF
the least supported stocks, out OF
which they seem satisfied to earn their
daily salt. 1t is no small gain to legi-
innate business that the reckless fill
clustering of the raiders has been thus
brought under check; for it is the first
step toward rise to be assured that
decline has touched it's 'lowest deep"
The stock market has to a consider
able extent broken loose from inf1u-
ences that are still depressing general
business. The extreme scarcity and
continued boarding of money has lit
tie direct effect upon stock exchange
operations. That kind of business is
done without the direct intervention OF
cash, ard as the banks can lend on
stock loans without parting with cur
rency they give certain preference to
stock brokers, especially as their col
laterals, at the present low prices,
form good security Members of the
exchange, therefore, find no difficulty
in borrowing at bank at and per
cent on call, while other important
borrowers have to pay 10 and II per
cent for the insufficient accommodation
that can be afforded them. This re-
turning ability to get loans enables
holders to protect themselves and
makes Wall street less sensitive than
other interests to the adverse course in
which events are still running.
he w eek on the whole contributed
some important reliefs to the general
situation. 1t is true that there is no
abatement of the common dearth of
money, and none in the large demands
of the interior banks for help from the
metropolis; the banks, indeed, are as
much pressed as they have ever been,
so much so that they are compelled to
refuse currency to outside applications
and have advanced rates to almost pro-
hibitary figures; which simply means
that point has been reached at which
they can no longer afford to be gener-
GUS but must stand for their own pro-
lection. But at the same time, the
fact that by the end of next week,
nearly SEC, O,000,0 900 of gold will have
been received from Europe while some
ais. .OOO 900 of new bank circulation will
he in the course of issue, cannot but
have an important effect in
relieving the scarcity of money
and thereby restoring confidence.
Some relief is also felt from the fact
that Congress is at last brought face
to face with the great silver danger.
was such strong yet simple presenta-
ton of the case as to carry to all
classes a deep conviction of the danger
in which the Sherman act has placed
the country. and the consequent ne
cessity for Immediately repeating the
obnoxious clauses of that law. The
president having thus broadened and
Intensified the public hostility to sill
IN
assume the impossibility of congress
falling to satisfy this universal de.
mand. From such symptoms at the
capital as can be traced amid the con-
fusion of party maneuvering, it ap-
pears quite safe to assume that
congress will ultimately adopt an un-
conditional withdrawal of the author
ization to purchase silver. That is the
sole sine qua non to the restoration of
confidence and prosperity; and the
country would like to know it-and
the sooner the better,-if it is possible
that congress of the United States
could be capable of refusing measure
go fundamentally vital and demanded
by such an overwhelming majority OF
IT is much to be hoped that this
conclusion may De reacneu WlCn Cne
least possible delay and that the dis
cussion of the question may not be
hindered by mixing with it non-essen-
tial issues. After the main question
has been decided, there are other
financial problems that would natur-
ally arise out of the suspension OF sill
yer purchases which congress might
we'll consider. Lest the sudden cessa-
tion of large supply of silver money
should result in the evils OF contrac-
tion. it is necessary that some pro-
vision be made for the new issues OF
currency from some other source. In
order to provide against that incon-
venience, means should be devised for
an increase in the national bank circu-
iation: and, to meet the emergency, it
mioht suffice. for at least the present,
that the national banks be authorized
n issue notes up to the full face value
Of S the bonds deposited as guaranty
This would allow of a large increase in
the M circulation; and if further expan9-
sion should be found necessary, it
could be provided laier by other
means. Experience has shown the