St. Paul daily globe., 1896-02-03
ON Solid HARD PAN
NOT FOR YEARS HAVE GENERAL,
BUSINESS CONDITIONS BEEN
so GRATIFYING.
MANY GOOD REASONS FOR 1T.
RETURN OF AMERICAN SECURI-
TIES PLACES THE COUNTRY
OUT OF DEBT.
EXPORTS STEADILY INCREASING.
Gold Ready for the BOnds-Renewed
Activity Noted-Henry CIews'
Review.
MANY GOOD REASONS FOR IT..
EXPORTS STEADILY INCREASING.

Special to the Globe.
NEW YORK, Feb. I'm his weekly
report Of financial conditions in Wall
Street Henry Clews says:
During the past week Wall street has
generally shown a recuperative tend
ency. There is still the same uncer.
tainty about the exact shape in which
the subscriptions to the new treasury
loan will come out; but the uncertainty
Is no longer a cause Of disturbance,
but is rather a matter of curiosity
There is no second opinion about the
whole loan being subscribed, end as
the first installment taken up will call
for only some $22, ,000, 900 of gold no one
dreams Of any difficulty about pro-
Viding for those payments. The fact
that the demand for gold at dealers
hands has subsided and that the pre-
MUM on gold and legal tenders has al
most disappeared implies that the prep
arations for paying the first INSTALL
ment have been about completed, which
means that the effect of the disburse-
mentS to the treasury on the 9Th inst.
has already been anticipated. OF course
the bank statement of next week will
show some loss of lawful money re-
serves, but that is understood in ad-
vance, and with a surplus of nearly
$3S, 900 already in hand the with
draWalS cannot only be well afforded,
but will have a good tonic effect upon
the money market; for the surplus re-
serve of $38, 5000 900 is not to be regarded
as healthy symptom or as having a
healthy tendency; it Is rather a de-
pressing indication of stagnancy.
The general conditions affecting
financial affairs are working into a
more settled and normal state. The
widespread process of liquidation that
has been in operation for many months
indeed for nearly three years past,
seems to have eliminated. Foreigners
nave ceased to return our securities:
the scare and diStrust of English in
VestorS has not only abated, but is
succeeded by occasional spurts Of de-
mand for our stocks and bonds. Con-
tlnental bankers are understood to
have a gratifying confidence in Ameri-
can credit by important bids for the
new issue of government bonds, there
by intimating that they take our cur
rency arrangements less seriously than
Go the Anglo-Saxons.
OUR TRADE BALANCE
is getting into more wholesome shape.
The excessive imports that followed
the reduction of import duties are now
rapidly abating. Our exports. held back
for four months following the harvest.
are now going out in much larger vol
unae, ana that in theeface of advancing
prices for farm products. The extraor-
binary changes in European politics
and the dangers thereby suggested are
making foreign investors more willing
to consider the merits of American Sc
cu11tles, owing to their exemption from
the contingencies now affecting the old
world issues. The foreign exchanges
are turning quite decidedly in our fa-
Vor. Gold is coming from London;
and although the arrivals are rather
due to subscriptions to the new loan
than to ordinary commercial remit
tances, yet the bonds going out will
help to ease our balance with Europe,
and may possibly reach the result Of
making the importation of gold a paw
ing operation. The item Of foreign bal
anceS resting here is in an unusually
conservative position. That balance
has perhaps never been so low as 1t is
today. Indeed, the process of liuuida-
ton has been so complete and radical
that it is doubtful whether, outside Of
our securities permanently held by for
elgners, this country has for twenty
years been so completely out of debt
to other nations as it is today
The fact deserves more notice than 1t
receives. We have steadily got down
to hard pan" under the most danger
Gus and discouraging circumstances.
we nave been against ourselves and
the world has been against u.s. Our
statesmen have failed to comprehend
the difficulties, and our politicians have
been brutaty reckless in their attacks
upon public confidence. Yet we have
met all the liquidation attending these
conditions with unfiinching strength
and courage. We have suffered losses
In the market value of securities. but
the SolVency of our merchants and in
dustrialists has been firmly main
tanned, and we are, only waiting per-
mission from our political masters to
start into great revival Of enterprise.
1t is not to be wondered at that Euro
pean observers are said to be surprised
at the strength of resistance to adverse
circumstances that our people are eX-
hlbfting. This attitude cannot but COM
pei their confidence, in spite of our ne
glect to put our currency and other fl
nanc1al conditions in a sounder posi-
ton. The fact is that the financial
strength and the mechanical equipment
or our industries are such that it is
beyond temporary and partial restric-
ton; and they stand constantly
READY TO EXPAND
their operations upon the first indica-
ton of more encouraging conditions.
We fully appreciate an active resump-
tion of business so soon as the waiting
for the completion of the treasury loan
is ended.
In trade circles, there Is an evident
tendency towards better business. The
change is especially apparent in the
iron and cotton goods markets, and to