The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-03-09
Henry Clews Says Affairs in the
Street Are in an Abnormal
Condition.
Monetary Derangements, in His
Opinion, Show Little or No
improvements.
Depleted Condition OF the Treasury Cole
Balance Stiil Hangs Thrcateningiy
Oyer the Street.

ANEW ohh -
Issued by the banking house Of Henry
Clews & Co.. IL. IL and 10 Broad street. and
80 Wall street. says: Affairs in Wall street
are in an entirely abnormal condition.
The value OF investments is in only a sec
ondary sense regulated by Intrinsic condi~
tions, Outside influences Of an exttaor-
binary character arc the controlling fac
tors; and as those influences are of o ftful.
uncertain and even serious character they
are producing considerable Generalization
and afford unusual opportunities for the
attacks Of bear" spectators.
The virtual disruption of the Reading
combination and the placing of that COM
pany again in the hands of receivers has
been a serious addition to the demoraliza-
ton arising from the external influences
above referred to. To o certain extent, 1t
has been a shock to confidence in railroad
securieties; for IL shows that. in spite OF the
unQuestionable improvement in railroad
administration within late years. there Is
still a danger Of large companies being
plunged into embarrassment through the
unbalanced ambition of managers to under
take extensions and responsibilities for
which their resources are inadequate. The
uOWAAhlk VI ASVoAAAA u0o -
fected a wide range Of properties which
have become in one way or another In
volvsd in Mr. McIlsod's schemes of annexa-
tion, and this fact msgnihes the effects OF
the adverse influences with which the
market is having TO contend.
The sensitive state of feeling thus pro-
duosd very naturally spreads to other kinds
of securities which do not enjoy the full
confidence OF the market. A large proper
zion of industrial" scrip must be ranked
in that exposed class. The value Of those
issues is as yes very violently huotuating.
The "industrials" are at the moment the
real point in the market. But for this
factor and the apprehension of more active
money the feeling would be much more
buoyant than it is. for, in respect to the
general run of legitimate investments there
is q general concurrence OF opinion that,
intrinsically, they are in q healthy condi-
tion.
The monetary arrangements. to which
the present unhealthy state of the market
is mainly attributable, show little or no
Improvement. The oticia! statement of
the country's imports for the month Of
January has occasioned some surprise.
Contrary to common expectation. the i'm
ports of merchandise we're 81, 900, 900 in
cxCeh6 y ! IA Anoe vVnAs WAiAc tRC d
ports show a decrease Of $33. 0O0, 900; the
net result being that the first month of
1893 exhibits an excess of SIG, OOO, 600 OF
imports over exports. while last year the
exports exceeded the imports by $37, 400, 600.
These facts show that the large exports of
gold since Jan. l are much less due to the
special demand for gold from France and
Austria than has been generally supposed;
that. in fact, the loss of gold is more due
to causes connected with than to
the widespread monetary arrangements
that are inducing foreign banks to replenish
their stocks of gold. This is not an entirely
unwelcome conclusion; for Irregularities in
commercial movements are usually fol-
lowed by corresponding reactlons; and it
may quite possibly turn out that the PROS
pective exports of gold ordinarily incident
TO the spring months will be diminished by
the excessive outflow Of the last two
months.
The depleted condition of the treasury
gold balance still hangs threatsuingly over
Wall street. The strange thing is that the
banks should be SO backward in coming to
the relief of the government. In reality,
the trouble seems O simple one as to its
cause and by no means q difficult one as to
its remedy. The situation has arisen from
the fact that. in the ordinary course of
business as between the treasury and the
banks, the treasury has come to hold less
than its usual amount of free gold" while
"a AaNo SoIISokOuuluRIy luCFGESeu
their holdings of thas metal. Since this
accident in an entirely normal drift of ex-
changes has brought the treasury close to
an infringement upon Il pledged reserve of
gold which would injurious,y affect the
public credit. hi real objection
could the banks present to exchanging
say $25, 900, 900 of their extraordinary stock
of GOLD for IN equal amount of United
States notes held by the treasury The
transaction would involve no really obiec-
tionable reduction of the specis portion of
their reseryes-Which is now abundant
whilst ii wonld place beyond doubt the
legal tenders which are threatened by the
low condition of the treasury free gold ,,
The legal tenders received by the banks in
this exchange would anBwer all this pur-
pose just AZ we'll as tho gold with which
they Ierted; tho treasury would be put in a
strong positions: and all the talk and need
less alarm about the government being in
danger of susoendinR gold payments would
vanish. 1t is passing strange why the banks
should hesitate to take this simple remedy
and prefer to compel the government to
issue Il loan, which after all would have TO
be taken by gold drawn out OF the banks,
The banks Of the Rspboard cities are un-
wisely lncurring a serious responsibility by
needlessly prolopglnR a needless agony
through an uDgenerous dog-in-the-m mango
policy.
Arrivals at tho Grand Central.
HIl