The herald., 1896-04-03
HENRY cLEws. LETTER
NEW YosK. March %,

AS nucu importance - attaCHeu 10 tuo
money question, there ia . disposition to
defer operations until the state conven-
tions have given their indications ~ to
what is likely to be the attitude OF the two
parties towards silver at the national con-
vontions. The disturbance Of loans and
the stiffening of the rate of interest Incl
dent to the usual April settlements also
acts as an unsettling influence. Owing to
weather conditions, the earnings of the
western roads show some falling off from
their late high rate of increase. The con-
dition of European politics has a disturb
ing effect upon the foreign markets, which
shows it's effect in slight selling of stocks
son or another the ''Industrials'' are in an
unsettled state, which has an unfavorable
effect upon railroad shares. Besides
which, the acute agitation of the Cuba
question in congress keeps up feeling
OF apprehension lest some disturbing COM
plications should finally come out of this
meddling. The combined effect of these
influences has been to afford the "bears"
an opportunity at a period which is always
unfavorable to the stock market. They
have used the opportunity freely. and the
result has been a yielding in prices of one
or two points during the week.
The "buil'' interest has shown little dis
position to resist this tendency; but
neither have the larger holders yielded to
it. Perhaps they might not object to the
declipe going a little further; fo1 they do
not overlook the strength of prices that
usually develops in the second week of
April, when currency returns to the banks
and the money market settles to an esse
which continues to the middle of August.
A further drop in prices would mean an in
crease in the 'short' interest, as its cause;
and that condition would favor the "bulls"
when the upward reaction of April sets in.
It, therefore. would not be surprising if
the "bears" should be allowed free hand
for the next few days.
There can be no question that by far the
most important obstructions to the return
of confidence in investment operations
stand connected with questions which
await congressional action. That distrust
arises not only from the fact that such
questions are held In suspense but equally
or more from the circumstance that there
is great lack of confidence that congress
will finally act upon them wisely and with
moderation. Political ambitions and party
tactics have come to SO completely control
the action of congress that there appears
to be no longer any possibility of having
great questions of finance or commerce
dealt with upon their merits. The pre-
JUDGES and the uniformed sentiment of
the masses, together with the private inter-
ests of senators, warp discussion and dls-
tort measures to such an extent that con-
gress, instead of being safe dependence
for wise legislation, has become the object
of deep-seated distrust. This keeps
the material interests of the nation in
constant suspense. Men contemplating
long Investments, or desiring to enter
upon undertakings that run far into
the future, can make no calculation upon
what may be the legal conditions to which
their enterprises may be subject. Con-
gress no longer holds their confidence as
being a body of prudent, wise and con-
af q xxb IN " ha tr1v IN
respond to the soundest elements of public
opinion. 1t has constituted itself above all
the tool of tile ignorance, the prejudices
and the passions of the million; and
sound finance, sound money and sound
trade policies no longer find safe protec.
consciousness of the Generalization and
the perversion of the law-making authority
which is now more than anything else
causing the hesitation and postponements
that are paralyzing industry and invest
ment in the United States. This political
distrust is especially liable to make itself
felt during the year of the presidential
election; and presidential election at q
period when fundamental money questions
are in the balance must invariably cause
considerable unsettlement.
Questions of this weighty nature are
taken much more seriously at the finan-
cial center of the nation than among the
men who represent hundreds of millions of
invested capital. it 10 a matter of the ut.
most gravity whether those Investments
are to yield return payable in gold and
its equivalents or in currency depreciat-
ed one-half as compared with gold. The
rural constituencies, however, view such
| questions in no serious light. They know
little of the differences between one kind
of money and another and regard the
quantity of money as q much more impor.
tant matter than it's quality. Yet this
very class have the numerical majority at
the polls, and therefore may easily turn
the scale against those whose fortunes de-
pend upon our money maintaining it's
face value in gold. 1t is therefore no mat
ter of surprise that New York and other
large centers should feel deeply concerned
about the uncertainty in which the money
| of the future is involved, and about the
results of an election in which the
constitution OF our money is tho primary
issue. The extent to which this unsettled
feeling exists in the investment market
may be inferred from the fact that, when
the treasury recently asked for q loan of
500. 100000. yielding less than 4 per
cent, nearly $SOO,OOO,OOO was offered.
This immense amount of offers was due to
the fact that the bidderY expected the in
terest and principal would be paid in gold; !;
and the reason why they had withheld
their funds from other investments was
because they did not feel quite sure that
such investments might not become pay
able in silver or it's representatives.
Those who look deeply into the sources
of public sentiment are likely to feel entire
confidence in the final maintenance Of the
gold basis; but the large majority OF those
having accumulations to invest have no
opinions which they are willing to trust in
a matter of such importance, and they
therefore prefer to keep their means in an
uninvested form, SO that they may the
more easily protect themselves. This is
the practical significance of the money
question 10 Wall street. 1t is this uucer-
4, tainty which prevents the negotiation of
loans for new enterprises; which keeps
railroad construction in suspense and gen
orally causes people of means to prefer
investments about which no question
, affecting the money of payment can arise.
1t should be some assurance to this class
of people that the drift of public opinion
on this money question is distinctly shaping
in favor of sound principles and methods.
Public education upon such complicated
| question must necessarily be slow, and we