The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-12-16
Review.
Henry CIcw's Weekly Letter ON
the business Outlook,
STOCK EXCHANGE SITUATION,
HailFoAd shares Generally Neglected
Dar'ng the wssls-Enset OF the A.scm-
bling Of conErrss-Thu Presldcnps Ti-
nanrIal lsrsonmrndations-A Question
Tor Candld Consideration,
Special Correspondence.

Special Correspondence,
NEW YORK, Dec. H,-purlng the
past week, the Industrials, mouopoll1ed
attention on the stock exchange; but
as these are subject to special lntlu-
ences their fluctuations are no criterion
for the dealings in railroad shures, Tine
latter were generally neglected; not be-
cause OF the unsatisfactory condition OF
railroad affairs, for thcy' arc steadily
Improving, MS testified by the larger
number OF roads reporting better earn
ings, but almost entirely because OF the
arrest OF the speculative spirit due to
the poor prospect OF any adequate
financial legislation from this Com
greas, Investors will not buy In u
heavy market; and spectators dare
not take hold with the possibility OF n
fresh outbreak OF dlstrust In view,
Many OF the leading shares are selling
below their their intrinsic values; and
bright business prospects warrant u
rising market; but all such forces are
Just now held In check by this unset
Ting at confidence. Eventually the
market must so higher; but, until the
financial outlook becomes slearer, It's
course IL uncertain, and we would nd
wise prohtinS taking upon all fair raj
lies.
1t Is most unfortunate that, with n
strong rccuperptlve tendency us now
exists IN almost every branch of busl-
ness, everything should. be thrown into
uncertainty by conditions ut the ma
tioRal capital which make legislation
on certain vital questions almost I'M
hpOssible. The house and the RdmlnIE-
tration, representing the opposite poles
In politics, can hardly be expected TO
agree ON anything; and the senate Is
so perversely constituted that II may
be expected TO disagree on whatever the
house might adapt or the Prsldnt sane
tlon. In such a plight OF lmpractibili-
ties, no legislation Of importance seems
to be within reach, and the country
must remain In uncertainty for fifteen
months ~ to what IL to be the policy Of
the country or tho great financial is
sues Of the day.
II would seem, however, that nj there
were u majority at Washington OF men
Of both parties Loyalty willing to make
some moderate concessions OF political
preference TO the urgent necessities OF
public confidence, there should be no
difficulty In providing reasonable COM
promises on financial questions that
would materially help 10 mend the sit
untion and to encourage II better feel
ing In business circles. so far us re-
spects currency questions. opinion has
Its extremes, favorinG. IN the n hand.
un adherence 10 old ideals and, on the
other, advocating u total recOnstruc-
tiOn OF our bank note system and q
withdrawal OF both forms OF legal ten
ders as fast ms new bank currency
could he brought out: while the senate.
as a whole, is n cabal OF Phlllstines,
impractIcable for everything but
free-coinage. In such n situation, while
deferrIng a broad and final settlement
for the future, certain midway meas
ures might be accepted without doing
unbearable violence to the politics OF
any Of these three divisions Of sentl-
ment. For instance, wha I obJectinn
need either OF the two parties present
to the retirement of the 40 millions OF
Sherman notes, at the moderate rate OF
say Ave millions per month. thereby 70
far reducing the exposure Of the treas.
ury to n drain on It's gold reserve and
Increasing confidence in the remaining
Si5 millions Of greenbacks2 Such a re-
ductIon OF the large volume OF treasury
paper would impart confidence to the
conservative sentiment among our peo-
pie. and would be an important evil
dence to tn e foreign holders OF $1,000
100000 OF our securities that we may he
trusted to put our currency system up
on a sounder basis: and. In that ems
II would be an invaluable contribution
towards the restoration OF confidence.
To those who may desire a more sweep
ing retirement OF legal tenders. II
might be a concession in principle. but
II would be a valuable experiment as
showing what may and may not he
p%rtidently done In the way OF pruning
our legal tender money.
Such a withdrawal OF paper would
call for Its substitution by some other
kind OF notes. Al this point also II
should be possible to measurably salts
~ the preferences both Of those who
cling to the present national bank guar
anty Of bonds and those who advocate
Issuing notes on the guaranty OF n first
claim upon the assets and on the sec
ond liability OF the stockholders, What
sufficient rensQn can be offered, whether
OF principal or e%xpediency, why ar Issue
OF national bank noteE should not be
authorized, guaranteed to their full face
value by say two-thirds in United
States bonds and One-thlrd In assets OF
the bank? In other words, let any 10
tlonhl bank be empowered to issue cir
culntlng notes to the extent Of 10 per
cent In excess OF the par sum of It's
bonds held against circulation; ana
make all the assets OF the bank, lnclud-
ing stockholders liability. available for
liduidatIng such portion Of the notes az
is not covered by bonds. This would
very largely increase the ratio OF notes
10 bond deposit; but that increase
would be mroe than compensated by
the added preferred claim OF nsFots and
the notes would be ms safe aB those now
existing. Some such Increase IN the Is.
suing ability OF banks las compared
with that now nllowcd) would bo indis-
pensnble 10 bringing out an amount OF
new circulation sufficient to set of the
withdrawn Sherman notes. The ma
tIOnnl banks now issue circulation be-
rnuye they have TO keep on hand u Ger
inIn amount OF b~OndH-not because the
issues Yield u satisfactory p~roft-nnd
they make up for the low rate obtained
on the bonds by putting out notes
aEalnEt them. The Presidents pro.
poPni to reduce the tax on notes from i
10 Y per cent and TO nllOw Issues up TO
the par Vniue Of the bonds would be IN
tIrCly inadequate as u dependence Tor
drawing out it0,0OO,OOO OF new circula-
tIun. The banks must have n margin
fr issuing upon their credit, n WIN
oIt tyinE tp their working resources,
before they can be expected TO mater
lnily cxpnnd their note issues. Some
such arrangement nE that here Buggcst-
cd would satisfy that requirement to
the amount needed.
II In niaO n question for candid ION.
alteration whether II would not be Just
10 nil sections and therefore also pOlItl-
emily prudent, 10 broaden the resource
for igguIng notes by authorizing tho Gro.
ntlnn Of national banks with Il capital