The herald., 1895-04-17
InnnI rIrIn mr. nnllllrnnr
LUCAl fItLU VI GUMMtKCt
Business Gives Way to Fiesta
so Festivities
WHOLESALE STORES CLOSE
Los Angeles Street Deserted During the
y Afternoon
Nothing Doing at the Headquarters Of the
Fruit Exchange Quotations Prac-
tically Unchanged

Although the banks were open yester-
iay as usual and the business houses, it
was practically holiday, and but little
thought was given to business matters.
The streets were thronged with people,
but they were engaged in looking at the
y elaborste decorations in the store win
aows and taking in the sights more than
panything else The savings banks closed
: their doors at noon, and during the after
C'noon nothing was doing. The formal
opening of the Fiesta appears by common
consent to have been regarded as holi-
day in every sense of the word. There
were many strangers in the city, the
great majority of course from nearby
towns, and "a corresponding falling off in
the number of orders from outside towns.
sAt the rooms of the Fruit Exchange the
,sSFs esta spirit was also prevalent, and,
~ side from attending to orders from the
VI East that demanded Immediate attention,
sse nothing was done.
= Brad streets of April 9th says editori-
sally concerning the silver situaiton:
=, .H'In spite of the mainfestly speculative
character OF the movement, silver quota
stdons have maintained their upward
course. The price for bars in Lon
commercial quotation in New York show
ing a corresponding advance to $50 per
ounce. A reaction has naturally follow
ed the lowest quotations made IN the
close of the week being 2914d in London
8 and 81 per ounce in New York.
:, LAS indicated in last weeks issue OF
- Bradstreet's, the motive power in this
movement is unquestionably the prospect
of peace between Japan and China. and
the payment by the latter of large war
ind emnity, principally, If not entirely,
Europe, exemplifed by their increasing
activity. is possibly an element in the
matter but it is safe to say that the effect
. of Germany's initiative in regard to q
new monetary conference is very small
indeed so far as speculative interests in
the silver market are concerned. 1t is
n true that Mr.. Balfour in England has
again set forth his views on the subj ct
with renewed emphasis, but it should be
remembered that Mr.. Balfour and his
friends have thus far signally failed to in
tloctrinate the conservative party with
Their bimetallc principles, and that the
great obstacle to international concessions
in favor of silver-the opposition of the
British OBSERVATION-DISCLOSURES as formld-
able as ever.
1.-THE present manifestations have. how
( Z ever, naturally attracted a great deal of
attention in this country. The rise has,
of couse, been so sudden that it is impos
sble to detect any tangible influence
upon the silver mining and smelling IN
dustles of the United States. 1t is, how
ever, noticeable tibet the great restraining
influence in the London maket is the
I fear that if the rise is maintained or i'm
proved on the American production will
increase proportionately, and thus nullify
&. in part or whole the beneficial influences
=. of the possible absorption of silver through
J the Chinese war indemnity.
THE outcome, after all, depends upon
Japan's future financial policy. What
that will be is very uncertain 1t is as
serted that the government of that coun-
try will utilize the opportunity to Htt Its
currency on gold basis. Oh thsfotlfer
p hand there is in well informed quarters q
z great deal of confidence that Japanese
tinaniers will not adopt monetary, policy
SO alien to the inrOoted habits of the peo-
pie of that country, or sacrifice the ad
yantageous position it now holds in re-
gard 20 exchanges on India and Europe.
This phase of the matter is well summed
up in published interview with Mr.. Ed
ward Brush of New York, one of the best
informed authorities on the subject. That
gentleman is quoted as saying: Not
withstanding what has been said to the
contrary, the Japanese government does
not desire to place it's currency on gold
basis, neither does it believe it would be
possible for China to arrange with Euro
pean bankers to deplete the gold treasur
80. les of Europe to the extent of the idem-
nifty which it will demand. 1t does, ex-
= ;pect.. however, that this gold indemnity
{ the trade centers of Europe. and will be
used there as banking capital to make
purchases OF silver, war supplies and
general equipment as its necessities re-
quire. The Japanese government has
made during the war internal loans for
credit will bring them in only about
per cent interest in Europe, and as its
silver debt is costing to 6 per cent in
Japan, it will certainly be to the interest
of the Japanese government to buy. as
- fast as can be done judciously, silver
with its gold credit, to repay its internal
loan. ~,,s
1.-The expression of English critics to
9 the effect that Japan will go on gold
Y basis is father to their wish. The en-
eplace India on a gold basis has SO far been
most dismal failure, resulting in plac-
ing the exchange of India Is to 20 per
cent above exchange of China and Japan.
This has resulted in largely decreased ex.
portations from India and largely in
creased expectations from Japan. Should
Japan place her finances upon gold
basis she would Immediately lose this
advantage and place it in the hands of
her principal rival, China, which must
ese are apparently. shrewd enough to see
this situation, and to govern themselves
thereby. $3.50. ,tv -,
Especially important is the question
= of the probable amount of the indemnity
sPrecedents derived from European exper-
fences especially that of the Franco
Prussian war-would Justify Japan in in
sisting upon an amount covering the en-
tire cost of the war. But, on the other
hand, it is useless for Japan to ask for
more money than China can borrow in
Europe. 1t is the common opinion
in London that not more than $3.50, 600, :
600 in gold could be, raised on the GUS
toms receipts. the only tangible security
(which China has to offer. How much Of
this would be paid in silver? Both
China and Japan have already incurred
considerable gold indebtedness in Europe
for war munitions, ships and SO forth,
and il is evident that Japan will defray
this Indebtedness with part of the in
e-demnity. This would reduce the actual
demand for silver resulting from the in
demnity. while it is needless to remark
THAT large share OF the sum to be re-
ferred by bills of exchange through the