The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-08-12
FINANCIAL REVIEW
Henry olows' Weekly Letter ON
the Money Outlook.
SITUATION IS LITTLE CHANGED.
Manufacturers Expecting a Material
Increase OF Cousu mpIion-SIlsslv.
Tugs as TO What May DO tho state OF
tho Gold HesoFve After ootobori.

Special Correspondence Of ne hsaigsaer
NEW SopI, August i0,-Phe general
Investment and speculative situation
has changed little tinco my last adyIcas.
The attitude iS still more or less hosi,
taIing, and tho drift OF the moment
seemS to prepoHderats in favor Of those
who incline to a waiting and cautious
policy The crops develop nothing new,
so far a. respects wheat, the general
conclusion Is that We may calculate
upon something less than a good aver
age yield, though the farmer seams
likly to DO compounded by higher
prices than those Of last year, while In
regard 10 corn tho balance Of western
estimates isvora a very large increase OF
output over 1891. In tho industries at
large there Is no abatement OF tho san /.
Rulne expectations that have developed
within the Lass six months. The rise
In raw materials and the continuance OF
the remarkable recovery In wages from
the decline OF 1893 aud 1894 shows con
cluaively that manufacturers ara aniici-
pating material increase Of consum-
tlon, and II Is to be presumed that their
expectations arc baasd upon facts Oxist.
Ing In the conditions Of trade.
All this Ia satisfactory aud naturally
induces largo measure OF public conf.
iGuce. And yet thcTe is unQuostion.
ably some withholding on account OF
certain factors in the gnanClut situa.
ton. AS matters now Pland, there is
clearly defined misgiylng us to what
may be tho state OF tho treasury gold
reserve after tho LIST OF October, when
the obligations Of tho Loan Syndicate
TO the treasury will cease. II, after
that date, tho relations between the
banks and the treasury remain as thoy
have been for tho last two years, the
treasury will have TO supply all gold re-
quired for export add yet 1t will have
no gold income from tho Custom House
or from any other source. II Is hardly
necessary 70 say what that means. One
thing admits Of no doubt; that in tho
absence Of ability to maintain
tho gold reserve aud in pres.
ence OF renewed reIort to
borrowing In order TO secure gold, there
must DO reaction from the now pro-
vailing stHt0 OF confidence aud prosper.
lty; how serious that relapse would be
each may Judge for himself. Certain 1t
Is that no nero commercial activity
could stop the depletion OF the gold ~.
serve so long as the treasury had no
gold income aud yet was compelled TO
supply the gold needed for our fixed
exports Of specie. 1t Is tho plOineSt
truism that, neither abroad nor at
home can there DO any settled conf.
dence In our Investments until We have
a strong and normal assurance shat
under any aud all circumstances the
United States government will DO able
to maintain payments In gold.
It is tho absence Of an adequate as
surance to this effect that is producing
the hesitation about our Investments
now observable in the markets Of Now
York aud Europe. II seems lncredR.
BILE that meAus will fail to be adopted
to bring about the desired security. 1t
il a mere question Of practical finance;
IL requires no now or special Contri.
vances; 1t demands simply return to
tho old method OF exchanges between
tho banks and iho treasury; thE use Of
gold as it was used up to 1903; tho pay.
ment Of gold for customs duties, and
the payment Of gold BY the treasury at
tho clearing house. II Is not worth
while to inquire why those relations
we're broken up such an inquiry might
show that treasury management was
largely responsible for it. But this is
no time for adjusting blame, or making
reCrImlnatory charges. Tho plain fact
to-day Is that tho treasury and the
banks have il in their power to so nd.
Just their relations Us that each will
have enough gold for all tho require.
monts OF safety and credit; aud It IL in.
conceivable that thoy can much longer
delay coming back TO their old relative
positions. Henry OLEws.