Birmingham age-herald., 1895-09-30
-urMpV ol EWc' IETTCp
The Financial and Trade Situation as Outlined sby His Banking House-Some Matters of Encouragement

New York. Sept. IS, 1S95.-Wall street affairs present no new aspects of strlk- ing Importance. The gold exports have ceased, excepting that over $2,000,OOO was sent out in connection with Austrian conversion" requirements, and outside of ordinary exchange operations. It IS very generally taken for granted shat for the next three o rfour months the supply of produce bills will take care ol our accruing foreign Indebtedness; and, judging from normal experience, IL would not be surprising if there should be imports of gold during that period. This change in the position of our TOT eign exchanges has not produced any very marked effect upon securities, per haps mainly because the improvement III the situation was anticipated.
 It is a matter of encouragement that the outflow of gold ahs ceased In nat uaral way and without any direct Inter vention of the syndicate. This shows that affairs are regaining a natural course and opens the way for more formal remedial measures that ned to Iol- low We have now before us, to all ap- pearances, there or four months or easy exchanges, during which the treasury IS not likely to be exposed to further draln upon its reserve. That interval aHorns a favorable opportunity for bringing about the conditions needful to guarantee the treasury a steady gold income equal to it's requirements.
 Thei dea of bringing together the panks and the treasury under their former re lations, so that each will pay enough gold to the other to satisfy their resp ectlVe requirements. is becoming very generally regarded as the most direct and natural method of putting an end to the gold famine; but 1t 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 demoraliation it has become scattered throughout the country and needs to be gathered again to this center. The wide spread readiness of the holders to eX- change this gold for legal tenders placoP 1t within easy reach of the treasury and the banks; and if we add to this any for eign supplies that may arrive and the home production of about 40000 900 per month 1t will be seen that the resump- tion of gold payments between the gov ernment and the banks, by the beginning of 1896, should be withi the possibility of achievement. There are important finan- ciers who have their eye upon the treat ment of the situation and who are not likely to neglect any opportunities of pro- noting it which may arise during the next three months.
 These however, are contingent achieve ments. and although they may warrant a hopeful feeling in finance and trade yet, being possibilities rather than certain ties, it. must be expected that the future will be regarded with reservations. No matter what remedies may be proposed or hoped for, so long as none are positive ly accomplished there remains the dan ger of return of drains upon the treas ury, with all their bad consequences. This fact must act as wet blanket upon the market for our investments both at home and abroad, and speculation for higher values must be in some measure re- strained. But while this factor may pre- vent any active upward movement, it is not likely to cause any fall in prices, be- cause the feeling as to the future is pre- ponderantly hopeful. and outside the treasury situation everything augurs well for prosperous condition of business.
 The course of the local money market Is watched with more than usual inter- est. Currency still continues to flow to the west and south in large volume, and it looks as If the bank reserves may be considerably further reduced before the movement eliminates The chief interest in this tendency centers in thefact that, rise of 1 or points in the rate for loans would, in the present sluggish state of the European money markets, be calculated to cause foreign balances to rest here in stead of being sent home, the effect of which wold be to depress the rate of ex- change and thereby promote importa- tions of gold, so gfeatly needle under the existing conditions.
 The situation in stocks is calculated to create an active and fluctuating trading market rather than to develop any large outside movement for the present. The position of railroad shares favors strength in those properties. The grain roads show a steady gain in earnings, and the good condition of the large crop of corn is especially favorable to the future of companies dependent upon that cereal The coal companies are bene- fited by the upward tendency in prices and by the favorable prospects of an early settlement of their differences. The settlements of railroad companies in process of reconstruction are still subject to delays and Instructions, which hold in check speculative operations in their securities Taking the situation as a whole, while it presents no special inducements calculated to draw in the general public, 1t is nevertheless sound and steadily improving, and purchases on declines for a brief turn are likely to yield fair profits.
 HENRY CLEWS.