St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-09-30
HENRY CLEwS SAYS GOLD WILL
NOW ACCUMULATE IN TUE
UNITED STATES.
EXPORTS OF GOLD CEASE
ON ACCOUNT OF HEAVY MOVE
MENT OF GRAIN AND PROD
UCE.
NATTER OF ENCOURAGEMENT
That Trade Conditions Are Reing
Relieved by Entirely Natural
Methods.
Decia1 to the Globe.

oecial to the Globe.
NEW YORK, Sept 29.-In his
weekly review of the financial situa-
tion Henry Clews says:
Wall street affairs present no new
aspects of striking Importance. The
gold exports have ceased, excepting
that over $4,000, 600 was sent out in
connection with Austrian "conver-
sion" requirements, and outside Of
ordinary exchange questions. 1t is
very generally taken for granted
that, for the next three or four
months, the supply of produce bills
will take care of our accruing for
eign Indebtedness; and, judging from
normal experience, it would not be
surprising if there should be imports
of gold during that interval. This
change in the position of our for
eign exchanges has not produced
any marked effect upon securities,
perhaps mainly because the i'm
provement in the situation was an
ticipated.
1t is a matter of. announcement
that the outflew of gold has ceased
in a
NATURAL WAY,
and without any direct intervention
by the syndicate. This shows that
affairs are regaining natural
course and opens the way for more
formal remedial measures that need
to follow. We have now before US,
to all appearances, three or four
months of easy exchanges, during
which the treasury is not likely to
be exposed to further drain upon it's
reserve. That interval affords a fa-
vorable opportunity for bringing
about the conditions needful to guar
antee the treasury a steady gold in
come equal to it's requirements. The
idea of bringing together the banks
and the treasury under their former
relations, SO that each will pay
enough gold to the other to satisfy
their respective requirements, is be-
coming very generally regarded as
the most direct and natural method
of putting an end to the gold famine,
bat it is felt that the present hold
ings of the treasury and the city
banks do not warrant the change
being undertaken at this moment.
Though the stock of gold in the
country is nearly equal to an aver
age and really ample for these pur-
poses, yet during the late demoraI-
ization it has become scattered
throughout the country, and needs
to be gathered again to this center,
The widespread readiness of the
holders to exchange this gold for
legal tenders places it within easy
reach of the treasury and the banks,
and if we add to this any foreign
supplies that may arrive and the
home production of about 1000, 900
per month, it will be seen that the
RESUMPTION OF GOLD PAY
MENTS
between the government and the banks.
by the beginning of 1896, should be
within the possibility of achievement.
There are important financiers who
have their eye upon this treatment of
the situation and who are not likely to
neglect any opportunities of promoting
it which may arise during the next
three months.
These, however are contingent
achievements, and although they may
warrant a hopeful feeling in finance
-afIa hi, IL: I:a.-
than certainties, it must be expected
that the future will be regarded with
reservations. No matter what RENE
dies may be proposed or hoped for, so
long as none are positively accom-
plished there remains the danger of a.
return of drains upon the treasury,
with all their bad consequences. This
fact must act as a wet blanket upon
the market for our investments both
at home and abroad and speculation for
higher values must be in some measure
restrained. But while this factor NAV
prevent any active upward movement.
it is not likely to cause any fall in
| prices, because the feeling as to the
future is preponderantly hopeful, and
outside the treasury situation every
thing augurs we'll for a prosperous con-
dition Of business.
| The course of the local money mar
ket is watched with more than usual
interest. Currency still continues to
flow to the West and South in large
volume, and it looks as if the bank re-
serves may be considerably further re-
duced before the movement eliminates.
| The chief interest in this tendency CEN
| ters in the fact that, a rise of one or
| two points in the rate for loans would.
| in the present sluggish state of the
European money markets be calculat-
| ed to cause foreign balances to rest
| here instead of being sent home, the
| effect of which would be to depress
| the rate of exchange and thereby pro-
| mote importations of gold, so greatly
needed under the existing conditions.
The situation in stocks is calculated
| to create an active and fiuctuating
| trading market, rather than to develop
any large outside movement for the
/ present. The position of railroad shares
| favors strength in those properties. The
/ grain roads show a steady gain in
earnings, and the good condition of the
large crop of corn is especially favora-
bic to the future of companies de-
pendent on that cereal. The coal COM
| panies are benefited by the upward
tendency in prices and by the favora-
bic prospects of an early settlement
of their differences. The settlements
| of railroad companies in process of re-
construction are still subject to delays
and Instructions, which hold iqa check
speculative operations in their securi-
ties. Taking the situation as a whole,
while it presents no special induce
ments calculated to draw in the general
public, it is nevertheless sound and
steadily improving, and purchases on