The Providence news. (Providence [R.I.]) 1891-1906, 1896-01-29
Financial and Commercial
Review of '95.
Remarkable Period In the An
mails OF All Business.
Kaffir Boom, Turkish Question, vene-
zuelan Scare, Cripple Greek News.

The year that has just drawn to a close
has teen a noteworthy one in financial
and commercial circles, a t~welvemonth
OF alternating periods Of buoyancies and
depressions, caused by a chain of stirring
and exciting events at home and abroad,
that have left the market in a somewhat
weak and unsettled condition.
The opening month Of 1895 ushered in a
series of unfavorable conditions that
~precipitated a financial crisis upon the
country and resulted in a bad break In
abe public's confidence OF the Govern
ment's ability 20 sustain the gold stand
ard. caused by Congress refusing TO pass
suitable Legislation which was calculated
TO meet existing monetary needs. 1t
was at this time when valuations on
everything in sight were breaking badly,
and the heavy Withdrawals of gold from
The treasury left only s42, 800, 900, that a
eynd icate of wealthy and well known
bankers was formed and came to the res
cue OF the Government, taking S62, 317, 500
of 4 per cent. 30-year bonds. This prompt
action, handled by shrewd and competent
financiers, was the turning point in tie
finances OF the country, restoring conf
dence in America, credit in London and
on the continent ana doing an immeasur-
able amount of good, generally.
a period OF improvement followed. The
products and manufactures advanced
continuously, values took a new lease Of
life, industries that had Teen idle for
months resumed work and over 8. 00O, 600
wage earners who had previously been
employed on reduced time o. wages were
accorded an advance, and at no time
since 1892 did the country attain such a
prosperous stage. The railroads were
also benefited by the change; so, too,
was the general list OF securities and
material prog ress was made in the resto-
ration OF bankrupt mileage to solvency.
But with the dawning OF this era OF
good times came the wild and reckless
specuiating in the South Africa Katir
mining stocks from Londo and the con-
%tinent, resulting in the free selling of
American securities, and finally with the
bursting OF this speculative bubble.
Thousands were ruined. many failures re-
corded and the London and continental
tenters only attained their settlements
with great difficulty. Our market subse-
quently realized an unpleasant symps-
thetic effect rom this mining boom which
was only agitated the more by the politi-
cal complications OF the Turkish question.
The excitement was gradually dying
away and a cheerful outlook as to the
near future was being INDUCED in when
President Cleveland's warlike message
regarding the Venezuelan controversy
.eaffie and a panic In the New York and
London Stock Exchanges Immediately
ensued. London sold stocks and bonds
indiscriminately; several New York,
Philadelphia and Boston stock firms
were carried under and 1t was estimated
that securities declined 5000, 600, coo in
value. However, the war scare abated
and under the project of the new bond
issue securities recovered sharply.
Foreign gold shipments and exchanges
attracted a great deal of attention
throughout the year aud were important
factors in the street. The outward move
ment Of the precious metal was very
heavy during the last half of the year,
but, withai, at no time did the rates fall
to such a point that gold could be import
cd with profit.
Time money taken on an average ruled
easy at low interest rates and ii might be
said that it was an unusually comfortable
borrowing year up to the latter part of
December, when the panic caused a
strtugency which soon abated under the
soothing effect % the New York Clearing
Hous which issued loan certificates to
banks applying for the same.
The iron and steel trade, early in the
year, was characterized by activity and
high prices, but later a slump ensued
from the over-production of material and
q reaction followed.
In New England the best year for some
time was experienced among the cotton
mills, which derived a lucrative benefit
from the short advance in fabrics due to
the upward movement in raw materials,
but among the wooden mills the Wilson
tariff law proved a mill stone around
their necks and they did not fare as well.
Leather was the most prominent Of the
industrials and enjoyed an excellent year.
Cotton, the leading staple, was exposed
to unusual changes and the ball specula-
tion. which subsequently caused a break
in the market Of over one cent per pound
and was accompanied by the greatest ex-
element, ever known In the trade.
The Cripple Creek gold discoveries In
Colorado have caused a great deal OF ex-
ciiement but after the first glamor OF
another 40 fever subsidized the situation
assumed a condition that might be char
acterized as one waiting to ascertain the
practice results of the much talked of
mines now teing worked. With the
revival Of confidence and the operations
OF the bond syndicate at the close Of the
year a marked improvement in general
conditions was recorded.
TOUR EYEsr