Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1896-10-26
TRADE REVIVAL PROSPECTS
Investors Preparing to Take Many securi-
ties When Bryan is Defeated,
GOLD HAS COME TO STAY IN AMERICA
Future Conditions Regulated ON the
Theory that the United states
VIII HIVE u snfc Currency
system for All Time.

NEW YORK. Oct. 25-Henry Clews, head
OF the banking house of Henry Clews
Co., writes of the situation in Wall street;
Business In the securities market has
shown much strength of tone, during inc
past week and prices have made n net
advance OF to points; but the upward
tendency has been held In check by the sim
gularly uniform disposition in all branches
of business to defer operations until the
result of the election Is declared. In
Wall street operations, this disposition Is
strengthened by the still high rates Of in
terest on time loans, and by the unwill-
ingness of the banks to make advances
until the vote of November shows con-
clusively what are to he the future con-
ditions Indeed. this policy of resolute
prudence among the banks explains much
of the postponement in the mercantile
ponement is however now very brief
and, when the relief does come, its effect
win be all the more striking and influential
for not having been frittered away by
over-specuative anticipation.
From such Information as Is accessible
to the higher ranks of finance, the defeat
of free silver at the election is regarded
as certain beyond question: and while, for
the reasons above alluded to, this con-
clusion does not materially stimulate buy
ing, yet II makes holders generally unwill-
ing to sell and keeps the bears timid and
cautious. There are, however, influences
unconnected with politics which are really
affecting prices favorably; among which
the most prominent are the continued large
importations of gold, the extraordinary
position of wheat, and the firmness of our
securities In London, In spite of the severe
pressure upon the Bank of England and
the uneasiness on the Paris bourse.
CONFIDENCE IN AMERICANS.
1t is very remarkable expression of the
growth of foreign confidence in our in
vestments that, at the. very crisis of our
difficulties, and while in London domestic
and foreign securities and even consols
are declining Americans steadily advance
with the successive rises on our home mar
ket. There was n slight exception to this
rule upon Thursdays advance in the Bank
| of Englands rate of interest from to
| per cent; but prices between London and
New York were soon readjusted, without
any observable selling by the former to the
! latter. The arrangements of the week for
| importing, gold have carried the influx.
| since the beginning of the movement, up to
| $70.OO9.O00 For the moment there Is n
lull in the import engagements, the conse-
quence partly of this weeks large opera
| of bills and partly of the fact that the
| rise In the Bank of England rate calls for
concession on sterling exchange, which,
under this reduction In the supply of
| bills, Is not promptly forthcoming. There
| is, however, no abatement in the large
| exports of produce. and considerable for
eign orders for silver bullion are being
| received. while importers are buying vir-
tually no bills, so that, in few days the
| rate of sterling may be expected to return
| to the point admitting OF imports of gold.
LONDON is UNEASY.
London appears to be uneasy under the
present state Of the foreign exchanges
done to. stop the flow of gold to the United
| States" 1t Is not however, very easy 10
England and india and Australia, to say
| nothing OF other countries afflicted with
| short crops. must continue TO buy our
| wheat and maize, and IL they have to pay
20 cents more for their wheat than the
| price of two months ago-both OF which
seem to be inevtable-and II we continue
| the large current contraction Of our inn
ports which at present Is the actual drift
with the United States in such a shape as
to compel her to remit still further con-
siderable amounts, of gold to this country.
| Under ordinary circumstances, she might.
| in such trade situation as now exists,
find relief in forcing q return of our Sc
| Investments just now appear unusually I'M
willing to part with them; and ten days
hence an event may be expected to happen
In this country that will cause an impor-
| tant efiiuN of our securities to London.
Clearly therefore, England Is likely to find
this nee country '' Inevitable: and the some
| thing" which she needs to do must be
| done with sor,e financial metropolis other
Press opinion at London shows some in
Credulity about the entire bona fides OF
the s7O,OOOCOO export OF gold to the United
| States. 1t assumes that large sums have
been mp1Srtedb by wan o street houses at a
| hoarders at premium; and hence the
hope is expressed that instead of more
| have received may soon be flowing back
| These guesses Will prove deceptive.
| SMALL LOSS IN THE DEAL.
| Gold has been. In some compare lively
| unimportant amounts, imported with the
| hope of selling 1t to a few timid persons
| disturbed by the political outlook; but the
| intervals have been few and very brief
| when such operations have been made be
| low the even par of exchange 1t is prob
| ably quite safe to say that. of the large
| sum imported, not over 1000 900 or 5000 0O0
| has shown n loss to the mporter-irrespect-
| i've of any premium on rcsales
| Much as the London financial press has
had to say in criticism of our defective
| monetary status and projects, 1t would
not be surprising If. In the event of n great
| election victory for money reform, the
| same critics would still find reasons for
dissatisfaction, though of a different kind
| | say nothing of the opinions very freely
| expressed by London financiers that in
the event OF our ESCAPING the silver peril
and making safe provision for our legal
| tender notes. American securities would
be in extraordinary demand That is an
| opinion, which may or may not be justi-
opinion that already arrangements nave
| been concluded. contingent upon Nr Nc
| kinley's election by an ample majority for
| London participating to very large amounts
| In new American enterprises of great i'm
portance. Those best acquainted with the
relations between our architects of great
| financial undertakings and those of Lon
extent of the financial revival which will
| naturally follow the rehabilitation of the
| American monetary system. Such an out
| come would. of course. be a violent shock
| to the London penmen who assume the
| function of censors of finance.