St. Paul daily globe., 1895-08-12
SAYS HENRY CLEWS, IN CONF
MENTING ON CROP PROS
PECTS
HIGH PRICES FOR FARMERS
MAKE THE OUTLOOK MOST SAT-
ISFACTORY FROM A BUsI-
NESS VIEW.
Critical Condition of the Gold Re-
serve May Cause u Re-
lapse.
Special to the Globe.

Special to the Globe.
NEW YORK, Aug. II. - Henry
Clews, in his weekly review of the
financial situation, says:
The general inves tment and spec
ulative situation has changed little
since my last advices. The attitude
is still more or less hesitating, and
the drift of the moment seems to
preponderate in favor of those who
incline to a waiting and cautious
policy. The crops develop nothing
new. So far as respects wheat, the
general conclusion is that we may
calculate upon something less than
a good average yield, though the
farmer seems likely to be compen-
sated by higher prices than those
of last year; while, in regard to corn,
the balance of Western estimates
favors very large increase of out
put over 1894. In the Industries at
large there is no abatement of the
sanguine expectations that have de-
Veloped within the last six months
The rise in raw materials and the
continuance of the remarkable re-
covery in wages from the decline of
1893 and 1894 shows concluSively that
manufacturers are anticipating a
material increase in consumption;
and it is to be presumed that their
expectations are based upon facts
existing in the conditions of trade
All this is satisfactory and natur-
ally induces a large measure of pub
lie confidence. And yet there is un-
questionably some Withholding on
account of certain factors in the
financial situation. AS matters now
stand there is clearly
DEFINED MISGIVING
as to what may be the state of the
treasury gold reserve after the 1st of
October, when the obligations of the
loan syndicate to the treasury will
cease. If, after that date, the rela-
uons between the banks and the treas
ury remain as they have been for the
last two years, the treasury will have
to supply all gold required for export
and yet it will have no gold income
from the custom house or from any
other source. 1t is hardly necessary
to say what that means. One thing
admits of no doubt; that, in the alb
Sence of ability to maintain the gold
reserve and in presence of renewed re-
sort to borrowing in order to secure
gold, there must be a reaction from the
now prevailing state of confidence and
prosperity; how serious that relapse
would be each may judge for himself.
certain 1t is that no mere commercial
activity could stop the depletion of the
gold reserve so long as the treasury
had no gold income and yet was COM
PEELED to supply the gold needed for our
fixed exports of specie. 1t is the plain
est truism that, neither abroad nor at
home can there be any seettled conf
dence in our nVeStmentS until we have
a strong and normal assurance that
under any and all circumstances the
United States government will be able
to maintain
PAYMENTS IN GOLD.
1t is the absence of an adequate as
surance to this effect that is producing
the hesitation about our investments
now observable in the markets of New
York and Europe. 1t seems incredible
that means will fail to be adopted to
bring about the desired security. 1t is
a mere question of practical finance; it
requires no new or special contri-
Vances; it demands simply a return to
the old method of exchanges between
the banks and the treasury; the use of
gold as it was used up to 1893; the pay
ment of gold for customs duties, and
the payment of gold by the treasury at
the clearing house. It is not worth
while to inquire why those relations
were broken up; such an inquiry might
show that treasury management was
largely responsible for it. But this is
no time for adjusting blame, or making
recrlmlnatory charges. The plain fact
today is that the treasury and the
banks have it in their power to so re-
adjust their relations as that each will
have enough gold for all the require
ments of safety and credit; and it is
inconceivable that they can much long
er delay coming back to their old rela-
tive positions.