San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1895-11-22
FINANCIAL REVIEW.
Reported for the Light by Henry
Clews q Co,


ances afforded by Lord Salisbury's
Mansion House speech; which,
while leaving Turkish internal
affairs still in desperate condi-
ton, left no room for apprehen-
sion of serious political differences
as between the great powers. The
effect of these uttsrances upon the
European bourses was prompt
restoration of confidence, which
has been especially apparent in
American securities.
Another factor contributing to
the recovery has been the COM
parative absence of further seri-
Gus embarrassments in connection
with the wild speculation in
"Kaffirs." 1t seems probable that
now those stocks have come under
the control of the leaders, who
have no doubt gathered immense
wealth from their operations; and
in that case further disaster may
probably be confined to a few
minor operators whose ill-fortunes
could not be of much importance
to the general market for securi-
ties.
In addition to these improve
ments in European conditions, the
railroad situation has shown a
more hopeful prospect. In spite
of the light movement Of grain
and cotton to the seaboard, the
railroads begin to exhibit de-
cided improvement in earnings.
When cotton and wheat come to
be exported in the volume usual
at this season Of the year, their
traffic will be largely increased,
and earnings will show further
gain upon their already liberal
volume. The southwestern lines
have been suffering from an ex-
pected light crop Of cotton and
from its being withheld from mar
ket; now, however, opinion begins
to favor a somewhat larger yield
than has been expected and the
price has fallen to a point much
nearer the views OF foreign takers
so that it is reasonable to look for
an early liberal export OF the
staple, with a consequent gain in
the business OF the roads of that
section. The corn crop also is now
but beginning to move. The Agri-
cultural Bureau now estimates |
the yield at 2,l4S, 900, 900 bushels,
or 936,000,000 bushels above that |
of last year. 1t is impossible that
such an increase in one of our bulk
lest products can fail to largely |
increase the income OF the roads |
situated in the corn belt.
These improved conditions have |
arisen concurrently with largely |
oversold condition of the stock |
market, and the result has been a
rush to cover short sales, which
has caused general rise in the
railroad list. So far, however, the
improved turn in affairs has
had little effect upon the outside
element in speculation. The trans
actions have been chiefly confined
to board operators, and outsiders i
seem disposed to wait until the
recovering tendency becomes more
marked and positive.
But while the factors above
cited are tending to restore con-
fidence and have caused an ad-
vance in prices, the upward ten
dency is held in check by the reviv-
al of goldexports. 1t is a sufficient
explanation of this extraordinary
exception to the common rule of
importing gold at this season that
it results on the one hand from
heavy importations of merchandise,
and on the other from the persist
emit holding back OF the staple
articles of export. 1t is to be con-
coded that the detention of pro-
duce from export is sure to be
followed by shipments so large
as possibly to turn the flow Of gold
toward this country. The latter
fact may favor a replenishment of
the stock of gold in the metropoli-
tan banks; but it can bring no
direct advantage to the treasury,
as the government has no longer
any source of gold income and can
get the metal in no other way
than by borrowing 1t against
issues of bonds. The present state
of the foreign exchanges therefore
brings public attention back to
the stubborn "bear" factor arising
from the condition OF the treasury
gold resrve. The spectre of another
so millions bond issue rises be-
fore the public Imagination, and
there is nowhere much doubt
about that ogre materializing
sometime before next spring.
That constant disturbing possibili-
ty stands as a fixed obstacle to
anv reallv insnirinp recoyery of