The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1894-02-05
FINANCIAL REVIEW
Horny clews'a Weekly Letter on
tho Business Situation.
EFFECT Of THE TREASURY LOAN.

Yorh-Firmness Of Prices on tho
Stock Notwithstanding OF tho
Final Disposition or tho Tariff Bill.
Sptciai torNIpoadSact OF he inie,iiosnccr.
New YoRx, Feb. 3.-Wall strcot con.
ttnucs to move on in tho old tracks and
It's usual pace. a temporary furry was
caused by tho hitch between tho score
tary OF the treasury and tho banks
about tho negotiation oil tho now fifty
millions loan, but, thanks to tho flncssc
OF tho Now York banks md trust com
panlea cooperating with him, that
breach lasted but for day, and tho
loan has hoen made an assured success,
In spite oil tho partisan or demagogic
efforts that havo been made in Congress
and elsewhere to discredit tho aecro'
tary'a authority for making tho issue,
Had tho secretary been satisfied to fol.
low tue syndicate methods OF negotia.
ton which oynorionro bos srr;vcrso,Iv
shown to DO most successful in such
transactions, tho national credit would
have been helped by bids for many
umes tho amount OF bonds offered and
the treasury would havo been benefited
ny much higher rates OF premium. In
thia very important sense the secretary
must DO held responsible for an entirely
Gratuitous injury TO tho public credit,
which, under existing circumstances,
was tho last thing thegovernmcnt could
aliord.
| evidently, some nlne-tenths OF the
subscriptions arc made by tho East
Very sIngularly, Chicago has subscribed
almost nothing; which worry pointedly
suggests tho queation-what ls tho mat
Ter at that important centre? Phila.
delphia also takes an amount entirely
dissproportioned to its standing. The
SUBSCRIPTIONS OF Boston probably DO
not exceed 10 per cent. OF tho bids.
Such small subscriptions as may como
from tho interior arc likely to DO paid
Tor principally out OF funds resting in
the New York banks. 1t thus results
that nearly the entire payments nmout-
ing to close upon $GO,0O0,0O0. will have
to come from tho financial institutions
OF this city.
This Is very significant lesson as TO
the dependence OF tho national finances
upon this centre; and it should not be
without its elect upon the bank-haters
in Congress who imagine it good states
mauship to fetter and iniure eastern
banking interests in every possible way.
Nor is 1t, in tho face OF probable at
tempts 10 revive the silver agitation, Il
small matter for the banks to surrender
one-half OF their own stocks Of gold in
order to reinforce tho treasury reserve
OF that metal. The banks can well al
lord to part with S50,00O,000 of their
burdensome surplus Of reserves; but
when that withdrawal is made entirely
in the form OF gold or gold certificates,
it ia something very diflerant from any.
thing like o narrow selfish motive that
prompts the ready sacrifice ;'for the sill
yer struggle has By no means reached
the point OF absolute settlement so rs
to warrant tho banks becoming entirely
indifferent about their stocks of gold.
Tho success OF the loan can hardly DO
said to have had any stimulating effect
upon tho Investment markets. 1t is
not likely to cause any parting with
other securities; for the new bonds do
not yield sufficiently tempting rate OF
interest. So far as the bonds so into
the hands OF banks; it will not DO rs an
investment. but for gradual re.salea to
various forms OF financial institutions,
whose funds arc now largely idle in the
banks. and who cannot put their money
into corporate stocks or bonds. So that
the loan will scarcely be, in any appre-
cable sense, an element OF competition
with securities actively dealt in on the
stock exchange. Ono valuable effect
will DO to largely restore the distribu-
ton OF the national stock OF money to
its usual reservoirs and uses. The treas
ury will have its cash reserves and bal
ances restored to their usual safe work
inc volume; which will be very vel
come help to confidence in tho national
finances; and the banks will BIO relieved
OF the large useless superabundance OF
money with which they aro now
burthoned and from which their inter-
est earnings arc suffering. So far, the
loan means n largo restoration OF tho
normal conditions OF the circulation;
which will be step towards recovery
in other directions.
In tho stock market interest aeema 10
DO confined, for the moment, almost en-
tlrely to ANAL incidents connected with
individual stocks. The main feature Is
still the continued fixed underlying tone
OF firmness in prices, which rcsist all
speculative attacks and yield nothing to