The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-12-29

Uncertainty Respecting the Expected
House-Eariy Declines, With London.
Followed by a Firmer Tone and a Strong
Close at the Top Figures With substan-
ttsI Net Gains-Review of the Weeks
Business, and the Situation ut Large.
stock market today was restricted ow-
ing 10 an indisposition 20 make vent
ures pending the receipt OF definite
news from Washington regarding the
expected bond issue and the vote of the
house on the bill before IL providing for
financial relief. In the early dealings
prices declined on lower quotations for
American securities cabled from Lon
don and on selling Of that account IN
this market The declines were i'm
portant in only one or two instances
and a hrmer tone soon developed on
buying for both accounts. causing sharp
! improvements. especially in Leather
preferred. Sugar ard Manhattan. The
closing was strong az the top figures
and with general substantial net gains.
The short sharp panic OF December.
1895, from which we are happily rap
idly recovering, carries with il a lesson
which should not be overlooked, as II
recalls the cardinal fact that the Amer
lean people are more heavily indebted
than any other nation to foreign hives
tors for capital used In the develop
ment OF their resources. This foreign
Indebtedness IS always source Of dan
ger, as not only the interest upon II
is drawn from US az intervals, but the
principal can be instantly realized by
sales OF securities on the New York
stock exchange. On the other hand
the retrospect also establishes the
strength Of the United States. After
the close of our civil war this country
was In poor financial credit abroad as
the leading foreign capitalists believed
that IL would require an interval Of at
least a generation or two before the
country could recover from the effects
of the great struggle. To their pro-
found surprise recuperation began i'm
mediately, for, with the exception Of
| the cotton and sugar interests, the in
dustries OF the country had been slim
ulated rather than depressed during
the four years of strife. BY 1870 the
steady reduction OF our national debt
had so far progressed that il could be
refunded at steadily declining rates OF
interest and. ON January l. 1879. specie
payments were resumed. The contrast
between 1864, when six per cent gold
bonds OF the United States sold on the
continent of Europe at 35ia, and 1879
when its four per cent bonds command
ed a premium. convinced the financiers
of Europe that the United States was
country of infinite resources, admir-
ably utilized. For home considera-
ton ii may be pertinent at this time
| also to note that between 1879 and 1881
| We imported over s200. 900, 900 in gold
| through the operation OF a favorable
! exchange although we then had out
! standing exactly the same amount OF
| greenbacks as at the present time.
The gloomy temper Of speculation
which had chara cterized the close Of
! the preceding week was relieved to a
marked degree by the prompt decision
OF the New York clearing house COM
mittee, cabled TO Europe, that loan Ger
| tificateS would be at once issued II
necessary to prevent further financial
! disaster. Foreign investors fOrcibly
/ expressed their appreciation OF this
I timely action by heavy purchases OF
American securities in their own mar
kets and by cabling TO New York hea-
w purchasing orders. In other words,
the panic was at an end. The local
market quickly responded and substan-
tial recoveries in the prices OF securi-
ties were made in short order. The
rally was greatly stimulated by small
cash investment orders to an aggre-
gate OF a large amount.
The more cheerful sentiments contin
ued all of this week except in so far as
nd tom d.2
70 a normal discrimination respecting
securities affected by special influences
and to the discussion OF the broad con-
sideration Of our financial situation
The foresight Of the clearing house com
mfttee was reflected In a decline in call
money rates from 70 per cent on Mon
day to below the legal figure and the
wide discrepancy between the actual
gold shipments and the previous ex-
traordinary estimates was also credit
I'd in part TO their businesslike attitude
The dominating topic OF interest has
been and still is the question Of finan-
cial relief TO the treasury by an issue
of government bonds. The problem IS
still open. While 10 is understood by
well informed 6nancieds that practical
~ every preparation for an issue OF
bonds has been made by the admins
Tration, the passage OF the bond bill IN
the house is expected TO induce the
president to defer action until the sen
ate has defined its position on the finan-
cial question. The expectation OF a
bond issue and preparation for such an
event by bankers and capitalists caus-
ed a small premium on gold obtained
from sources outside OF the treasury
Exports OF gold for the week amounted
70 about g., 300. 900. as agaius, estimates
Of $40. o00. 900 TO $12. 600. 900. Early N
the week il was reported mat would-be
shippers OF gold hlndered by the scar
city of legal tender notes OF large de-
nominations but no satisfactory expla-
nation OF the non-shipnent Of thrs--
fourths OF the gold ordered FOR export
by todsy's steamers was obtained.
Revived uufavorabie criticism Of the
financial condition ofshe baltimore and
Ohio railroad was responsible for a net
break from rfEe hsghest price OF iItz
per cent The vumors were specific
ally denied by an official Of the CON-
pany.
Sterling exchange rates. which had
been sharply advanced early, declined
on the expected issue OF government
bonds
Reports OF railway traffic returns f5r
ne f.hiri week n D@cernb~r ard an ex-
ceptionslly favorable Statement; BY the
president o: TIE company for Noye-a-
be- exe-ted a favorable influence upon
the market The buying movement
eliminated OF Thursday. advances hav-
ur5ay's closing OF ia. per ceu; 81 con-