Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-12-18
.CLEV ON FINANCE.
REVIEW OF THE FINANCIAL SIT
UATIoN.
c.uaittons ut tho National Capital
throws Everything Into
Uncertainty.

xeek the industrials monopolized at
,.ntlcn on the stock exchange. but as
hese are subject to special influences
,helr fluctuations are no criterion for
the dealings in railroad shares. The
latter were generally neglected. not be-
cause Of the unsatisfactory condition
a railroad AFFAIRS, for they are steadily
improving, as testified by the larger
pumber OF roads reporting better earn
,nes. but almost entirely because OF the
arrest OF the speculative spirit due TO
he poor prospect OF any adequate fl
nancial legislation from the congress.
Investors viii not buy in a heavy mar
ket; and spectators dare not take hold
si,h the possibility OF a fresh outbreak
u djstrllst in view. Many OF the lend
Ing shares are selling below their in
trinslc values; and bright business
Or epects wSrrant II Rising market; but
all such forces are just now held In
check by this unsettling OF condence.
Eventually. the market must 20 higher;
but, until the financial outlook becomes
clearer, its course Is uncertain, and we
would advise profit taking upon all fair
rallies
1t is most unfortunate that, with
such a strong recuperative tendency as
now exists In almost every branch of
business. everything should be thrown
into uncertainty by conditions at the
national capital, which makes legisla-
ton on certain vital questions almost
Impossible. The house ana the admin
istratlon, representing the opposite
poles in politics. can hardly be expected
10 agree on anything, and the senate
Is 50 perversely constituted that II may
be expected TO disagree on whatever
the house might adopt or the president
sanction In such IA plight OF imprac-
liabilities, no Legislation OF importance
seems TO be within reach, and the
country must remain in uncertainty
for fifteen months as 20 what Is to be
the policy OF the country on the great
financial issues of the day.
II would seem, however, that " there
were majority Mt 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 to mend the situ-
alton and to encourage better feeling
IN business circles. SO far as respects
currency questions. opinion has its ex-
tremes favoring, on the one hand, an
adherence to old ideals and and on
the other, advocating n total recon-
structlon OF our bank note system and
with q withdrawal OF both forms OF
legal tenders as fast as new bank cur
rency could be brought out; while the
senate, as whole, is q oabal OF Phllis
tines, impraotlcable for everything but
Tue coinage In such n situation, while
deferring broad and final settlement
Tor the future, certain midway meas
ures might be accepted without doing
unbeatable violence to the policies OF
any OF these three divisions OF sontl-
ment For instance; what objection
need either Of the two parties present
70 the retirement of the 40 millions OF
sherman notes. Mt the moderate rate
OF say iive millions per month, thereby
90 Tar reducing the exposure OF the
treasury TO drain on its gold reserve
and Increasing confidence In the re-
naming ai5 millions of greenbacks?
such reduction OF the large volume
ot treasury sentiment among our peo-
pie, and would be an important evil
Hence OF the foreign holders OF $1,000
vooOOO OF our securities that we may
De trusted to put our currency system
upon sounder basis; and, In that
sense, II would be an invaluable con
lnnulion towards the restoration of
confidence. To those who may desire
y more sweeping retirement OF legal
principle, but 1t would be valuable
,aperlment as showing what may and
",sy not he prudently dono In the way
VI pruning our legal tender money.
such withdrawal OF paper would
.sIl Tor It's substitution by some other
A.nd OF notes. At this point also It
1uouid be possible to mcasurably sat
Ely the preferences both of those who
wing TO the present national bank
| a 10 R.f Ntrh nd
sVeate Issuing notes ON the guaranty of
hfst claim upon the assets and on
W., W. second liability OF the stockholders.
Nnht sufficient reason can be offered.
whether OF principle or eNpedlency,
why an issue OF national bank notes
mould not be authorized. guaranteed
" their full faco value by say two-
.nitnH IN United States bonds and one
snfd In assets OF the bank In other
words, let any national bank be em-
powered 20 Issue circulating notes to
,he extent of 30 per cent In excess Of
ne par sum OF It's bonds held against
circulation; and make all the assets
W me bank, including stockholders
haullity. available for liduidatlng such
portion of the notes as Is not covered
ny bonds. This would very largely in
elease the ratio OF notes to bond de-
loslti but that Increase would be more
."au compensated ny the uuutu pTNitf-
len claim on assets and the notes
would be as safe as those now exist
Tx Some such Increase In the issuing
ABILITY OF the banks Gas compared with
.nat now nllowcd would be indispens-
sue TO bringing out an amount OF new
circulation sufficient to set nff the with.
ulawn sherman notes. The national
ranks now Issue circulation because
'ney have to keep on hand certain
ainount OF bonds--not because the Issue
sleids satisfactory pront-nnd they
nuke up for tho low rate obtained on
Ne bonds by putting out notes against
mem The presidents proposal 70 re-
uuc- the tax ON notes from TO ~ per
ernt and TO ALLOW issues up TO the par
value OF the bonds would he entirely
INADEQUATE as a dependence for draw
.ns out 40 millions Of new circulation.
me banks must have u margin TOT
issuing upoi, their credit, and without
wing up their resources. before they
.hn be expected TO materially expand
sntlr note issues. Some such arrange.
lnent as that here suggested woull
,ausfy the requirement to the amount
y is also n question for candid con-
.iuerAiion whether II would not be Just
y, W gu sections and therefore also po-
ideally prudent, TO broaden the re-
,nuree FOR issulng notes by autnor-
z1lg the creation of national banks
I'm a capital Of not less than SZbiVvv'