The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-05-31
THE FINANCIAL REVIEW.
Some improvement Of Conditions
in the Local Machinery Of
Finance.
An Improvement In Crop Pros
poets That 1s Very Highly
Encouraging.
p.r.,,xxed Condition Of Trade in tho In.
terror and tho Worry Poor Reasons
for It

for II
New York, May 3O.--Ths last circular is'
vued BY the banling house OF Henry Clew
l. Co., II. 10 and Is Broad street and 3
Wall street, says. So far as respects tn
local machinery Of hnance, there has beer
some improvement OF conditions during
the past week. Thu further large recover,
Of the sur plus reserves shown In the bani
stntsns nt OF the Goth instant has had . dc
cidsdly assuring effect. II meant TIA
from now until the usual fall demand TO
currency for moving the crops the reserve
are likely to stand In IN unusually stronl
position, and that when that demand come
the banks are likely 10 be we'll situated TO
meeting il. Tho general inference from
this 10 that q reasonable probability 10 o.
tablished for the money market maintain
ing 4 fairly easy condition henceforth ans
for tho remainder of the year.
This naturally has an assuring sffeos' 10
II favors the probability OF holders o.
sound securities being able 10 satisfy al
their borrowing wants on good terms 1oi
several months to come. The removal o.
doubt upon this point 10 an important
Gain: but il is mot a cure all. There are
certain doubtful factors affecting tho mar
ket; such az the caution and disability Of
operators after the late severe shock. the
tactics Of the ressimist traders. the out
come In London OF the great Australian
failures, the partial depression Of business
a. home and the weak spots among . class
OF interior concerns.
Factors like these must have their indu-
ence on the stock market. and may DO q.
pscted to check q speedy recovery OF prices.
But IL would be an exagQeratton OF theiE
importance to conclude that they leRiti-
matsly forbid any advance beyond the
present Lowell Of prices. II il to Be censid-
cred that prices now range but little above
the panic level; that the railroads are max
ing good earnings and are likely to con-
tinue to do 10 for some months ahead;
that the competing supply OF new invest
ments coming upon the market is far below
the average and Is likely to remain so for
some time; that. in periods OF low quota
tions like she present. investors are apt to
exchange bonds and other investments for
railroad stocks which are relatively
cheaper; and that when the Loadon mar
kst has recovered from it, Australian
10OGK 800 6uO buVK0 4OS tAONAo =
likely TO revive. These facts constitute an
element of resilienoy which is likely not
only to hold transient downward reactions
in check, but also TO exert a steady lifting
force upon prices; and that tendency has
been manifest in tho improved tone OF the
market during the last halt this week. both
abroad and at home.
The worlds crop prospects have lately
shown An improvement highly encourag-
ing, In April a general failure of winter
wheat seemed almost inevitable, with the
result OF Q serious deficiency in the supply
Of that staple. Now, in England and most
of the continental countries, The probable
itiss favor about an average crop. and even
Russia affords promise OF . leap from a
famine yield to q good average output. In
this country wheat shows a recovery from
the conditions upon which q crop OF 440. :
OOO. 600 bushels has been prsdioated, while
spring wheat and corn planting are prom-
ising favorably. This change nay not
favor tho interest OF the speculative hold
from our last years wheat crop; but that ID
. small of set against the universal bene-
fits arising from cheap food the world
over.
The most deprsasinR circumstance with
which this center has at present to contend
IL found In the state of trade in the interior.
This condition seems to have originated al
"Obp 0uG4AOly Al vaO ASs0 A1VAOSoAy
and the Attendant collapse Of the indus
trials" 1t had been preceded BY q sound.
conservative and fairly active and profitable
condition OF trade. The scare suggested by
the large gold exports, the drain upon the
treasury gold reserve. and the sharp pre-.
cautions Of our local banks. together caused
the eastern and interior banks TO contract
their accommodation to customers, and
suddenly tho financial sky became lowering
and black from Maine TO California. In
this way credit has become suddenly para
lyxed in every section; the weak spots in
trade. in financing and in banking have
been roughly probed, and a large amount
Of failures have been preoipitated. Il ID
safe to say. however, of these suspensions
that. in . large majority of the cases. they
have not arisen from real insolvency. but
from a sudden and moro or less indiscrim-
mate withdrawal of the usual credit faoil-
ities. Considering tho severity and the
universality OF this contraction of credit.
the wonder is that Its effects in the
more numerous. This evidence of tbs gen.
eral commercial situation should pass fol
something with those whose incontinent
timidity in lending has done 80 much TO-
wards producing this condition OF things.
There is evidence enough to show that those
fears have exceeded any real ooossion; and
the true course, at the present stage, for the
NJ WIN Dhu NJ . II "o1CAa0
customers. is to nuke their present larRe
surplus more freely available. Ths only
possible result of a different policy must be
10 further agQravate a situation already
made needlessly severe. The present dis
elimination against the mercantile com
munity at our large oenters may, unles
speedily moderated. needlesslv bring man,
more TO the verge of suspension. Tn
situation is one that calls for a broad AM
intelligent comprehension of the real con
dition of business and for a Judgment tina
understands how to protect the lender b.
protecting the borrowe'. A little more 0
that policy would soon produce u grea
change in the tone and condition OF bust
ness Throughout the country at large.
For the present. We deem it safe to bu
moderately OF good stocks on the down
ward turn.
Wrecked Train and Circus.
ALTOONA, Pa, May 30.-Main's oircu