The herald., 1896-02-21
cLEwS AIRS HIS VIEWS


past week has confirmed that view. The
effect of the large speculative realiZings at
tendant on the consummatiou of the loan
has more or less fingered; but, behind that,
there has been a stronger uniertone, q
broader disposition TO buy and q prepon-
derant upward tendency in prices. Conf
dence i'll the breadth and stability of the
market has made very considerable gain,
and the dominant feeling favors a ris-
ing scale of values. London shows
| an important return towards trust in
| "Americans,n growing out OF the unex-
pected extent for the bids OF the loan.
The offer of nearly six hundred mllions of
capital is accepted there at its undeniable
importance q measure of the floating
wealth of this country and as an ailirma-
ton of the unwavering confidence of our
people, in spite of the financial derange
ments that for the time being are exposing
our investments to foreign distrlst. The
spirit of self-trust naturally and lelti-
mately encourages confidence among the
large class of transatlantic investors who
have received their impressions entirely
from journals and bankers whose prediiec-
tions are tow ards their own national in
vestments; last weeks surprising express
sion of loyal confidence will afford them a
lesson not soon to be forgotten. The ref
erence in the queen s speech and the subse-
quent di :cussions in parliament, relating
to the Venezuelan affair, are calculated to
tiOn between this country and Great Brit
ain. From the tenor of those illusions, it
is evident that the queens govern
ment has resolved to remove this OBJ
stacle to amicable relations with the
United States: and. Judging from the tenor
OF English opinion. it is not improbable
that an effort may he made to provide per-
manent ARRANGEMENTS for the friendly set
tlement of all future disputes between the
two nations, which would be an immense
gain towards an expansion OF the business
relations which have been recently inter-
rupted. This country may be depended
upon to receive any advances of that nature
in the spirit i'll which they are intended.
Possibly. from the singularity OF our posi-
tion and policy. our people might not be
willing to go so far i'll this direction as a
country which. owing to the vastness of its
external relations, has special interest in
establishing permanent friendships with
every nation possible. bu; especially with
the United States. Nevertheless, our people
do not need to be convinced OF the adyan-
tage of having their relations with Great
Britain put upon basis of harmony and
stability consistent with the racial, COM
mercial and financial interests OF the two
nations. Present tendencies appear TO be
running in That direction; and thus what
few weeks ago was deemed serious dan
ger seems likely to issue in the achieve
ment of great International advantages.
AT present, all this Is in the diplomatic
stage. aud therefore can be estimated, in
the markets, only as a hopeful probability.
That probability. however, has a distinct
market value; and that value begins to be
expressed in the renewal OF investment
and speculative transactions at London.
AT the moment, Wall street discounts
these probabilities with becoming modera-
ton; nevertheless, our relations with Eu-
rope are marked by perceptible increase
of transactions.
The critical phase of the loan transac-
ton is now passed. The fears that some
disturbance of the money market, or pos
siby considerable premium on gold,
might arise from such large operation
have not been justified by the event. The
money for the payments has been pro-
| cured without friction, or disturbance of
ordinary loans. or extra rates of interes.
| This is the more remarkable considering
| that so large portion of the bonds have
been already taken up in full and that, by
the end of this month, about 70 per cent
! of the issue is expected to be fully paid for.
| In reality, all this had been arranged for
in advance, and whatever arrangement in
! the money market occurred, happened du-
| ring the latter part of last month. The
| treasury has very wisely determined to
place an important portion OF its receipts
from the loan on deposit with the
banks that have most literally SUBJ
scrIbed for the bonds. This prevents
any large contraction of the bank
reserve and also keeps the loan
| market comparatively easy. The net con-
| dtion following this operation is O. steady
| money market, fortified treasury reserve,
| an elevation of the public credit and an inn
proved state OF confidence throughout the
country. The treasury, it is estimated, will
now have reserve of fully Sl25 200, 900,
| after allowing for Withdrawals of gold for
paying for the bonds. That gives an inter-
| val of several months, during which the
| treasury is likely 10 be exempt from any
large disturbance of its gold fund: and it is
| 10 be hoped that during that period ar
rangements may be made which will pre-
vent the necessity for any further loans in
connection with the reserve arrangements.
The loan having been accomplished with
these satisfactory results, more solid
basis is laid for Wall street operations for
the remainder of the year. The present
loan rests upon more normal arrange
| ments tl,an that of February, S95. 1t in
wolves none of the special regulation of the
foreign exchanges that was connected with
the last negotiation. and consequently will
be followed by none of the Strengthening
out that caused ons1erable exports oi
gold last fall; and that is one of the ad
vantages attending the so'callsd popular
method OF borrowing. The great improve
Inent of business that followed the negotia
ton Of a year ago is fresh i'll the public
recollection; and ii seems reasonable tC
hope that similar result may succeed the
operation Just concluded. Upon the whole
the condition of trade is steadier now thar
it was at this stage of 1895. In most o.
the markets there is gradual gain, but il
| some there is reason to regret ,the su1deI
and large advance in wages that was made
in the spiing of last year. Buyers, how
ever, are supplying their wants witt
little hesitation at the reductions il
prices recently made, and fair sprins
trade seems 10 be reasonably assured
Present indications favor the probability o
a comparatively easy state OF the none,
market until next fall; and the foreign eS
changes reflect, in declining rates, the re
duction in the imports, the relative increas
United States bonds to Europe, and the bel
. ter feeling in London towards America
investments.
The question as to what is meant by tn
word coin has now been settled to ID ea
gold, just as much as if ali act had passe
congress to insert the word ''gold'' befor
, the word "coin'' in the United States bond
+ and other obligations. The American pee
I pie have settled it now and forever; SO tia
congressional action Is not now necessar,
When the silver orators were talkin
. against time in the senate trying to max
: the word ''coin' mean silver. the Amer
. can people, with whom actions speak lout
. er than words. decided that the word col
meant gold coin, hence they put in $500
!, 100000 bids for the 500, ,000, 900 bono
: payable in gold coin. This settles the col
troversy for all time. Gold it is that bacl
q the United States government credit all
silver is not in it, The 9th of Februar