New-York tribune., 1896-08-31
~ y COS. .s5.eee a5s sa.se7.ll8 Dec. sl&3.4l
THE WEEK IN WALL STREET

The whole situation has changed and the
change appears 20 be Of permanent charac'eI' :
that is to say IL looks as Il lasting improve
ment in affairs had been started Last week
closed with feeling Of confidence in the future
course of financial events and with the prices
Of securities displaying a strong upward ten
denc,. while tho preceding week ended with val
ues unsettled and with douht as 10 "htH
monetary conditions would be adjusted on
substantial basis The factors which WORKED
the transformation were the letter OF acceptance
~ Mckinley which promised a stable currency
and an Administration of business OF lhe ,'oN
ernment on business prlnciples 'he hPeeOl. va w
General Harrison. which pointed out TO voters
the value of their votes. and the hedNY I'M
portations of gold which removed an! remain
ng apprehension that the Government Hls ie nv
in spite Of all efforts. drift on 10 SILVER paSlS
IN irief the incidents Of the week cleared
the way for a better order OF things Wh'ch
investors speculators and business men geher-
allv were quick to see. II IS not falr TO eA-
nec, a hoono at once The country fas gone
through too much for that; but the buhdihe-uP
process has evidently started Ihere nlaS I've
halts but each day makes II clearer 'a' 80 e'se
Government is 10 be placed once more III eaie
hands there will be distinct and steauE gam
in confidence which will be accompanied oa. ny an
expansion in financial. Industrial ana i'er'd"-
tile operations. ,-o,o hoe
The complete collapse in sterling exchange ha'
proved that the gold importations are ma. l, Lai
and that the gold brought from the othSi Siuo u
will stav here Had the importations becH .I7
result Of the manipulatiOn of the exchange ma
ket or in other words. had they peeh oiVus'' t..
about by the creation Of Corresponding s. Dols~.
tons abroad the return OF the goiu 10 run
would bava hnen only a question OF tine, ana
probably of comparatively shoit 'Lil'o. ,r
plethora Of exchange comes not SlOA' Iio .,
ling loans but from the export floNeHIeH1 - -.
cotton grain and other products anu i'oi,, n
manufactured articles. The demand IoI ,, SV
room has increased so enormously Ill Wv 'i, ',a
ten days that in some cases the ocean-cf!iHlhS
charges have been doubled The Sterine lodI7
run for 90 long a period, for The most part 'l"'
their maturity has no relation 10 the uuIu n
ton Of the gold influx, 10 put IL IN hno'"T '' -,
form. while the sterling loans nave hripe" III
the Importation Of gold they cannot De uSeu
10 take away the gold again. Beioie 'he l"'n"
expire the Onward movement OF 'lt b'e'. fi 9."
ples will have assumed such vast proportions
that the nOn-reneWal of the loans VIII De d
matter Of no particular moment, ,..
The rates for money in Europe sho" a harueh-
ing disposition. but il is improbable that lhe,
Will reach a point where the employment or
money there will be more profitable than II -
here There is a surfeit OF money IN Euroie,
Therefore il may be assumed that there VIII
b. plenty Of foreign money offering in TINS mar
ket right along. The chief consideration IN
sterling loans viii be the nature and extent
Of the collateral provided by borrowers WIN
an appreciation In values the exactions VIII be
lessened The stringency in the American
money markets cannot continue much longer
Cheap money IS not reckOned on. but the ar
rivals of gold from abroad VIII render II far less
dificult 70 obtain accommodation. The troubIr
has been that manufacturers. merchants ana
others could not obtain money on any tcrHlS
a nd there has been widespread business distress
IN consequence. II has been impossible TO pro
cure time money even Oh Government Donds
and likewise Impossible Ia sell commercial pa
per with the receipt Of s2JOOOW0 or $50
ODOOn Of gold from Europe this ban on bust
ness viii ne removed, for the circulating medium
will be increased by just 50 much Not only
that. but the alarm which has prevailed %lll
subside and boarding OF money Will stop.
There is no denying that boarding has been, in
q measure responsible for the tiehtncss Of
money. When the people and concerns which
are holding money see that there is no pros
pective advantage IN keeping Il locked up. they
-' let Il out. There arc corporations ard IN
oivtduals who. foreseeing high money, borrowed