The Republican. [volume] (Oakland, Md.) 1877-current, 1894-11-22
FINANCIAL REVIEW.
Henry CleWs' Weekly Letter on tn
Business Situation.

New York, Nov. 17.-Althougl
the immediate effect of the bond
issue was realization of profits
made in anticipation Of the event
itself, its ultimate effect will be to
strengthen confidence both at home
and abroad. Nobody contradicts
the fact that the necessity of the
loan is misfortune; but the deter
mination of the government to pro-
tect the national credit by the best
possible eEpcdiont, until the deeper
causes for distrust of our currency
system can be remedied, is the
strongest sort Of argument for con-
fidence. Mr.. Cleveland has been
lavish enough in promises to ahis
end; yet his action IN the matter
has not been prompt enough to
meet the preferences Of the banking
community. Europe, however. can
now rest assured that our currency
will be maintained upon q gold
basis, and this will do much towards
overcoming the prejudice Of foreign
holders, who have very naturally
feared that interest and principal
of our securities of our money
might some day become payable
only in debased money. As for
business interests, sufficient time
has not yet elapsed to actually feel
the results of the late election,
Everybody now believes that silver
ism, populism and tariff agitation
are questions of the past; or at least
that the country is assured of rest
from such disturbances for some
time to come. Industry will thus
receive encouragement towards re-
newed eXertion, and while from the
nature Of the case recovery must be
slow, it will be certain and vastly
more substantial than could have
been possible except for the popular
verdict of November 6. One of the
most satisfactory features of the
times is the universal aversion dis
played to any revival ia the shape
of a ''boom."
In some quarters there is a dis
position to exaggerate the effects of
low prices for wheat and cotton
upon the agricultural interests. 1t
is overlooked that both wheat and
cotton can be raised much more
cheaply than formerly, and that it
costs less to handle and transport
these articles than eyer before. In
some portions of the south cotton
can be grown probably with profit
even at the present depressed price,
and IN other sections where low
prices press hard some compensa-
ton is had from better fertilizers
and better methods of cultivation.
Again, we have great abundance
of these low priced commodities,
which brings their aggregate value
up to normal volume. Consumers
are benefited by these low prices,
and have more to spend in other
directions. About 5O,OOO,OOO
bushels of wheat have already been
fed to cattle with advantage, not
wasted, and good authorities esti-
mate that as much again will be
used before the next crop. When
ali these and other offsets are con-
sidered, it will be seen that the
present condition of the American
farmer, while bad enough, is not
quite so wretched as many would
have us believe, Through all these
long months of panic and distress
we have had fewer complaints from
the farming than from the manu-
featuring districts; and as the farm
ers IN common with others are
sharing the cheapened cost of living
we cannot believe that they are
worse off than other divisions of
labor.
As for the industrial situation,
that is hopeful. Our textile mills
are not 1ulIy employed, but they
are turning out a larger product at
better profits than six months ago.
The boot and shoe trade has been
very active in low-priced goods for
several months. The iron trade
reyiyes very slowly, still there is an
unusual degree onfdence in the
future, and II OF the western
establishments Aich are most
fayorably circunsJanced as to local
lty and plant are running close to
Their full capacity. The stock
exchange is not blind to all these
factors. Investors show general
confidence in the future, and while
not often able to buy, stubbornly
refuse to sell: in tact the tenacity
with which stocks and bonds are
held is unusual. Money is plenti-
full and easily obtained for enter
prises Of merit; but railroad stocks
and bonds are naturally neglected !
while earnings continue so poor.
Better business, however, will soon
result in improvement in this
respect; hence railroad shares will !
quickly share and possibly antici-
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