The Republican. [volume] (Oakland, Md.) 1877-current, 1895-01-03
FINANCIAL REVIEW.
Henry Clews' Weekly Letter on the
Business Situation.

active business. Last years pros
pect was far from being cheerful
one; this year is not much more so.
1898 was a year Of unwelcome caus-
es; 1894 has been one Of very I'M
satisfactory effects; 1895, it may be
reasonably hoped, will be one of re-
covery from both.
1t is not often that such a series
of untoward events come together
within such a comparatively brief
period. Through both years we
have suffered from the effects OF
great and universal industrial reac-
ton. From causes dating back to
the general Introduction of steam
and mechanical Improvements, the
world has been working toward an
enormous increase of all the forms
,of plant, and it was only question
of time when that growth of pro-
ductive power would develop into a
-s--pply of products exceeding the
worlds ability to consume. That
position of affairs reached Europe
in 1890 and first expressed itself IN
the Barring failure. Three years
later the crisis reached the United
States, and the scare is now created
by our silver initiation was the
match to start great explosion.
Because the match happened to be
currency incident and therefore
affected first, and especially the
banks, we regarded the who troub-
lie as treceable to bad SILVER legisla-
ton; during the past year, however,
we have discoyered that the most
stubborn element of the depression
has been a radical want of proper
ton between the ability 20 produce
and the ability to consume. 1t is
through the many and deep-seated
arrangements which disturbance
of this complex nature brings that
we have been suffering the past
year. Consequently with that con-
dition we have undertaken legisla-
ton breaking up the old relations
between our domestic manufacture
ers and our foreign commerce,
which has surrounded our indus
tries with new and perplexlng diff
culties. Added to this has arisen
a disturbing gold question, involy-
ing the ability of the treasury to
maintain the controyertibllity of its
500 millions of demand notes. The
banks and the government have be-
come antagonistic competitors for
the metal. and in the conflict the
position Of the treasury has become
more aud more involved, and at
the end Of the year its way out Of
its Nlnculties is less clear than at
the BEGINNING. Affairs across the
Atlantis have done nothing to af-
ford relief on this side of the ocean.
The death pt the Gar, the war be-
tween China aud Japan and the
Armenian atrooSues have combined
to create a politic& situation full Of
dangerous possibilities to the peace
of the old world. With the spirit
of distrust thus excited on the Eu-
ropean financial market oar inter-
ests abroad have sympathize3. The
position Of the treasury and the
pending adjustments Of the affairs
of great bankrupt railroad corpora
tions have afforded nutriment for
this spirit of distrust among our
European creditors, and consider
able amounts of securities haye
been returned home, with conse-
quent large exports of gold, which
have aggravated our domestic de-
engagements.
1t is rarely that such a complica-
tion of persistent troubles has be-
fallen Wall street interest. None
Of them are of a kind to yield much
to the ordinary methods of artificial
relief; most of them must wait for
the establishments of time and nat
ural reaction. We have, therefore,
but little recourse but to sit still
and wait until the troubles worked
out their own cure. Such situa-
ton could not fail to create stagnacy
of capital, postponement of en-
terprise, decline of values, and gem
eral caution in every branch of bus
mess. Such has actually been the
experience in every interest, from
the beginning of the year to It's
close. The marvel is that such q
situation has been reasonably sound !;
failures have been comparatively
few; and there is nowhere the ap-
prehenslon that might be expected
under such circumstances, there
have been this year the usual new
creations of wealth; and consequent
ly the market for investments has
been extraordinarily inactive. But,
while inactive, it has been singular
ly steady in respect to values, and
the year closes, if not with any ex-
pectations of any large change from
the present low range of values, yet
with No amman ancio,, Of furt har