The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-09-07
FINANCIAL SITUATION.
CIRCULAR OF HENRY CLEws & CO.,
THE NEW YORK BANKERS
Financial Conditions Have Undergone 9
Decided Change for the Better During
the Past Week-New York
Bank Statements Very
Encouraging.

undergone marked Improvement anC
not only at this center, but through
out the country at large. The banl
statement of Aug. 26 showed that upor
the weeks average the reserves of tn,
banks remained $6,750,000 below the
legal minimum; but the actual de
ficiency at the end of the week was
probably not over $4,000, 900. Since
| the date of that statement about Sill,
900, 900 of gold has been received from
Europe, the major portion of which
has gone into the banks; and the re.
ceipts of money from the interior have
probably sufficed the Offset the ship
ments thither, while the sub treasury
has continued to be debtor at the
clearing house. Thus whatever may
be the showing of today's statements
based upon averages there can be lit.
tie question that the banks
hold at the end of the
week an amount of lawful
money in excess of the legal reserve
requirements. This has naturally
produced a more confident feeling
among the banks, and though they
are not yet materially extending their
loans or discounts nor retiring certifi
Gates, yet they are getting affairs into
form for giving the public the benefit
of their improved condition at an
early day. Everywhere the interior
banks are getting into better shape.
Many of those that have suspended
are resuming business; and bank
drawings upon New York have fallen
t. normal dimensions The nearby
country banks are appearing again as
buyers of mercantile paper which is a
significant expression of returning con-
idence among a very cautious class of
leaders. The savings banks have in
formally considered the propriety of
offering to prepay deposits the wit l.
drawal of which has been notified, but
seem to have preferred to wait until
the expiration of the 80 days notitica-
tions. The 30-day period ended this
week, the result being that only 10 per
cent of that class of depositors with
drew their money. The notifications
for withdrawal at the end of go and
80 days are being fast cancelled.
1t is thus clear that it would be quite
safe for the savings banks to make the
suggested offer of prepayment; and
that fact suggests probability that
these institutions may soon begin to
return more or less of their cash funds
to the custody of the regular banks.
The dealings in currency have virtual
Iy ceased and the premium upon it
has Disappeared; which is to evidence
on the one hand of the cessation of
boarding and on the other of freer |
in money at the banks
The foregoing facts afford the best |
possible evidence of the return of
and banking affairs to an
approximately normal condition.
The great event of the week, and the
)ne which more than anything else has
contributed to this important recov-
cry, has been the overwhelming vote
Of the house of representatives against |
any increase in our silver currency
lnder the Sherman law. That is an
immense gain toward future con-
idence. 1t means that, under no cir
will the country tolerate
my loose experiment with this form of
but will insist upon it as a
liked policy that gold shall be the
national standard. This restores to
he national credit rock foundation
hat will save it from such shocks as it
las lately sustained. 1t also carries
The advantage of dissipating the
doubts among foreign holders Of our
which have sent home prob
ably $150,000.000 of them since the
Sherman act took effect. Mondays |
vote, carrying with it the certainty of |
ike action by the senate, has been fol. |
lNxyn or OF Nf Irx
orders for stocks and bonds from Lon
lon, Frankfort. Amsterdam and Paris.
The extent of these purchases may be
Inferred from the fact that, al
though some S15,O00,000 of sterling
bills borrowed 60 days ago have ma
iured within the week, yet the rates of
exchange, instead of being thereby |
adversely affected, have been weak
and verging on the specie important
point. 1t is to be presumed that in |
Europe, as well as at HON =, there is
among cautious Investors disposition |
to defer buying until the solution of
the silver question is placed beyond |
all question by the vote of the senate.
1t is therefore to be expected that fur
Their purchases on foreign account will
be forthcoming when the senate has
voted.
This common advance out of the
slough of despond" has revolution
lied the tone of feeling in Wall street.
The first effect was rush to cover
short sales, and the next a return to
the street of class with ample means
for taking in bargains. 1t has been IN
the best sense week for the bulls,
who now are once more in control of
the market But for the occurrence of
two great cyclones within a few days,
with vast destruction of property and
the interruption of telegraphic com
munication with all parts OF the coun-
try, the effect would have been still
more marked. 1t has resulted, how
ever, in general advance of several
points in prices.
The market has now reached q point
at which it may be expected to be
sustained by q steady and continuous
in the conditions that
influence values. A confidence
spreads through business, our inter-
rupted industries will resume work.
depleted stocks OF merchandise will be
and the catching up of
three months of lost trade will cause a
revivipg spirit of activity. This COM
mercial recovery will show its results