The herald., 1895-02-28
MONEY, Stocks and BONDS
Henry CIews' Weekly Financial
Review
THE NEW GOVERNMENT LOAN
RumOred Resumption of Exports Of
American Gold
Good Prospects for a Turn In the Tide OF
Speculation in Wall Street.
Financial Notes
Los Angeles, Feb. 27.


Henry Clews, in his weekly financial re-
view of February 23d, sizes up the monetary
situation as fsllows:
Wall street is fairly taken by surprise at the
stupendous success attending the syndicates
negotiation of the new treasury loan. Two
weeks ago all was in the gloom of utter uncer-
tainty as to whether the treasury could be KEEP
afoat or must sink from lack OF rescue. Now
the status of the public credit Is elevatsj be-
fore the world by bids for ten times the amount
OF bonds offered, and by the fact that the major
part of the subscription is made in Europe.
This fact is as remarka bic for it's revelation of
the large amount OF capital seeking employ
ment as it is for its evidence of the still high
stan ding of our national credit The result so
far exceeds all that Wall street has been antc-
ipating that it is taken by surprise by the sud-
den appearing OF a new situation for which it
has not been prepared and the utilization of
which 1t has as yet no immediate plans, How
ever, there can be no second opinion as to
what all this portsnds. There is no place for
bearing" and buying must henceforward be
the order of speculation, backed by a large
reinforcement OF ontdence in London and on
the continent Indeed, we take IL that the
events OF the past week will strike the keynote
for revival of confidence the world over, and
for general recovery of business that has
held in suspense for the last three years. We
may expect to witness at an early day the ef-
fects OF tie marshaling of men OF capital for
promoting lively speculative campaign; but,
during the interval OF preparation by those
leaders, the market may not show any espe-
cially striking changes.
Bull speculation in London in American Sc
curites is likely, from all indications, to soon
start up, and it will probably be as pronounced
as 1t has been in the opposite direction since
the Barring panic OF November, 1890. The
Rothschilds and other leading London bankers
had foreshadowing OF the overloaded condi-
ton ofthe Barring firm, and, in antici patton OF
theirc lapse, were quick to shift their load OF
Americans to this side; and there has been no
time since then-now four and u half years
that the London attitude has been not only to
discourage the buying OF American securities,
but to encourage the selling of everything
American. The foreign press has also been
dead against our investments, and their at
tacks have been of most vigorous character.
The immense subscription in London to the
curront bond loan is an evidence that foreign
ers have a higher estimation OF the intrinsic
worth of United States government bonds than
we have in this country. The signal success
in floating this loan cannot fail to lead the
way to a revival of confidence in American
railroad securities which are now down to
x,
speculative ventures at least. The speculative
spirst in all the European money centers is
rampant, as we have indicated, from the
African gold craze. The silver move ment in
the senate has come to an end, not only with
outserous consequences but with significant
symptoms OF its growing weakness which will
afford an opportunity for other important
measures 10 be called up, including the Pool
ing bill, which, together with the appropria-
ton bills, will about fill up the short me
remaining of this wretched Congress- the end
ing of which will terminate, to q very large
extent, the suffering of almost every house
hold throughout the land. Itwould certainly
appear from all present indications that better
times are at hand
To recapitulate, the things in sight to be
considered in diagnosing the situation, are the
following;
The Pooling bill may yet pass this Congress.
The adjournment OF Congress now near at
hand,
The new crops will bring the benefits accru-
ing from a sheltering winter.
The opening of the spring trade has q very
fair promise.
The $1OO. 100000 gold reserve is made
good
The London connection, under the lead OF
the Rothschilds, with the new government
loan, again opens the door in London to Ameri-
can securities.
The big profits that will be realized from the
bond negotiation may be expected to encour.
age the buying of other American securities on
an important scale.
The prospects, therefore, are quite good for
turn in the tide of Wall Street