The Republican. [volume] (Oakland, Md.) 1877-current, 1894-12-27
FINANCIAL REVIEW.


y j. W OhN. Dtt. -. 49, W al SUI ecu
is now in the midst of It's annual
Retrospective mood, balancing ac-
counts, setting firms affairs and
reviewing the results Of u very
unsatisfactory business year. From
now until New Years is therefore
not a period for active business, and
operations are Ianguid and limpid,
This naturally makes an opening
for the "bears," who seek to make
the most of it: but with Indifferent
success. The encouraging event Of
the week has been the declaration
of their usual dividends by each of
the Vanderbilt lines. This appears
to have been made possible by q
large reduction in operating eXpen-
ses, IN spite of a material decrease
of gross earnings and Of the large
falling off in comparative passenger
receipts for the months covered by
the Worlds Far. The exports of
gold can hardly be SAID to have
more than "a momentary effect; for
the movement has been discounted
and the outflow is not expected to
exceed what is usually incident to
this season.
Wall street can hardly be said to
be optimistic as to the position Of
the treasury in regard to gold. 1t
anticipates a steady decline in the
treasury stock of the metal and
the necessity of the government
borrowing another fifty millions to
repIenish Its gold reserve in the
course Of a few months, unless
Congress should devise means of
ayertng the result, Of which, how
ever, there is not much expectation.
Some uneasiness is caused by the
steady withdrawal OF gold from the
treasury, materially in excess Of
what is required for current ex-
ports of metal. The drain appears
to come from the banks. and to be
for their account, and is probably
caused by a desire to recoup them
selves for the large amounts they
parted with in their subscriptions
for the late loan. No more serious
motive is supposed to be at the
bottom of the movement, and it is
expected to prove only transient.
In financial circles unusual inter-
est is felt in the pending legislation
relating to the currency question.
SO far as respects Secretary Car
isles bill, there is more or less Of
q concurrence in its proposals to
retire the legal tender circulation
Of done in a conservative way. to
change the basis of bank note guar
antce, to permit the issue Of notes
to the extent of rs per cent. Of
capital, to make more effective pro-
vision for the current redemption
of notes, and to admit the state
banks to the privilege Of issuing
notes upon safe conditions. The
measure, although in a crude form,
is regarded as atfording a basis for
Il reconstruction of our currency
system; and if there were any
expectation of the bill being enact
cd with the necessary needed mate
rial amendments, it would oe
welcomed as an aid towards the
restoration Of business. But the
bill contains certain provisions and
lacks others which, it is thought,
will defeat its enactment; or, if it
becomes law, would vastly counter
act its possible good results
Among the causes deemed objec-
tionable is the requirement that the
banks Of issue shall deposit legal
tenders at the treasury to the
amount Of 80 per cent. Of their
circulation; which would largely
restrict the net earnings from the
notes and so far lessen the induce
ment for the banks to avail them
selves Of their privilege of issuing;
besides which it might keep a very
large amount Of legal tenders in
existence after the rest had been
rotterdam incident which would
be inconsistent with the secretarY's
purpose to extinguish all the legal
tender notes. To those familiar
with the principles and operations
of banking, the safety fund clause
Of the bill requiring a deposit Of
lawful money amounting to 5 per
cent. Of the outstanding circulation
is regarded as highly Objectionable
on the ground that it involves a
mutual guarantee as between all
banks, in opposition to all sound
principles Of banking; besides which
this fund would be wholly superAu-
Gus regarded as a source Of guaran-
tee. With respect to the provision
repeating the revenue laws of the
national banks, although not a
little may be said in its favor, yet
strictly conservative fnanciers arc
disposed to regard it as an unsafe
innovation.
n,4,;l A., Do+;o,o1 lor1y;D r.