The Republican. [volume] (Oakland, Md.) 1877-current, 1895-10-03
FINANCIAL REVIEW.
Henry Clews' Weekly Letter on the
Business Outlook.

SApOlIo nave OtdoCN' VACOpolhS Vh"O
over 100000 was sent out in
connection with Austrian 'conver-
sion" requirements, and outside Of
ordinary exchange operations. 1t
is very generally taken for granted
that, for the next three o! 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 inter
val. This change IN the position
of our foreign exchanges has not
produced any very marked effect
upon securities. perhaps manly be-
cause the improvement in the stu
alton was anticipated.
TITS matter Of encouragement
that the outflow of gold has ceased
in a natural way and without any
direct intervention by the syndicate.
This shows that affairs are regain
ing a natural course and opens the
way for more formal remedial
measures that need to follow. We
have now before US, to all appear
ances, three or four months of easy
exchanges, during which the treas
ury is not liable to be exposed to
further dram upon It's reserve.
The interval affords favorable
opportunity for bringing about all
the conditions needful to guarantee
the treasury steady gold income
equal to its requirements. The
idea Of bringing together the banks
and the treasury under their former
relations, so that each VIII pay
enough gold to the other to satisfy
their respective requirements, is
becoming very generally regarded
as the most direct and natural
method of putting an end to the
gold famine; but it is felt that the
present holdings 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 average and really ample for
these purposes, yet during the late
decentralization it has become scat
tered throughout the country, and
needs to be gathered again to this
centre. The widespread readiness
of the holders to exchange this gold
for legal tenders, places 1T within
easy reach of the treasury and the
banks; and if we add 10 this any
foreign supplies that may arrive
and the home production of about
$4,000, 900 per month, it will be
seen that the resumption of gold
payments between the government
and the banks by the beginning of
1896, should be within the posi-
bility of achievement. There are
important financiers who have their
eye upon this treatment of the stu
alton and who are not likely to
neglect any opportunities of pro-
noting it which may arise during
the next three months.
These, however, are contiu gent
achievements, and although they
may warrant a hopeful feeling in
finance and trade, yet being posi-
bilities rather than uncertainties.
it must be expected that the future
will be regarded with reservations.
No matter what remedies may he
proposed or hoped for, so long as
none are positively accomplished
there remains the danger of a
return of drains upon the treasury,
with all their bad consequences.
This fact must act as wet blanket
upon the market for our invest.
ments both at home and abroad
and speculations for higher values
must be in some measure restrained.
But while this factor may prevent
any active upward movement, it is
not likely to cause any fall in pri-
ces, because the feeling as to the
future is preponderantly hopeful,
and outside the treasury situation
everything augurs well for a pros
porous condition of business.
The cOnrse of the local money