Birmingham age-herald., 1895-02-28
THE FINANCIAL SITUATION.

New York Financial Chronicle.
 Another week has served only to confirm the general belief in the wisdom of the course pursued by the president to restore the credit of the government and the confi- dence of the public. Very naturally regret has been Expressed by some because no bet ter price was obtained by the treasury for the bonds, the price at which they were sold by the syndicate being thoughtlessly taken as the guage or near the guage of the worth of the security at the moment of the execution of the original contract. In our relieved condition we so quickly lose the sense of the danger we were in, the need there was for instant action, and the fear ful catastrophe we have escaped, that our opinions take their shape from the sur roundings which the success of the loan has brought us into. We are apt to forget, too, that the high prices quoted for the bonds this week in London are the meas- ure of the influence of our packers and of the marvel they have wrought rather than of the credit of our bonds in the money markets of Europe before the contract was signed. The last bond sale made to our banks demonstrated clearly enough the futility of our homo market as a depend ence Tor relief; while the subsequent large loss of gold from our visible supply by ex- port and hoarding, together with the rul- Ing races here for foreign exchange, give added proof that we were helpless without our foreign connection and that it is the source of our present success and strength.
 There is still further evidence, reflected in part in the record of prices, of the change to lower level that had recently taken place in the worth of our bonds and was in progress up to the date of the syndicate contract. Congress, it will be remem bered, had been engaged, day by day, ever since the current session began, in work de- structive of the government credit We do not say that such was it's intention, but that was the effect. Note. the facts as they have developed. On December 1 and on Dece mber (the latter being the day con- gress came together) the old government coupon per cents were quoted at 116 bid; on December and December Il there were sales at that figure. rhereupon decline sel in which was slow, but continued until the price had dropped to 113 bid January 4. During the rest of that month down to very near the closing day the public remained hopeful and there was no change in prices but in the last week of January-the week when we stated in this column that s'the apathy and actual hostility which congress had ex- hibited of late with reference to any legis- lation tending to reinforce and strengthen the power of the treasury to keep our gold collar, our silver dollar and our paper dol lar convertible, has been the strangest and most unaccountable attitude ever shown by any Legislative body of which we have the history''-that week the decline set in again, the bid price on February 1 of these same bonds being only 1l1%-a loss in gov ernment credit since congress met of 4% points.
 That was the eventful week. We set forth last Saturday the peril in which our standard of values was and the panicky feeling which prevailed JaGuary 31 and on the morning of February l. exposing to loss, It not speedily arrested, the last dol