The herald., 1896-06-12
\ HENRY CLEWS' LETTER
NEW YORK. June 6. 1896.

NEW IOhA, Juue o. lo6o.
In Wall street. business in all depart
ments is largely held in suspense by the
prevailing political excitement on the
silver question. All other considera-
tions are lost sight of, and other factors
come and go without leaving any i'm
preston on the temper of the market.
London is catching the spirit of this de-
moralization. and shows more DISPOSE
ton to sell than to buy, but is evidently
less concerned about the situation than
ourselves.
The feeling is one of surprise at the
unexpected force of the pro-silver fac
tion in the south and the west. While
the east has been supposing that its edu-
cational efforts had largely broken the
force of this faction, the heresy has been
gaining ascendancy with surprising
rapidity. 1t has become serious ques-
tion whether free silver may not possi-
bly, obtain a formidable vote in the
coming elections of representatives. 1t
now considered settled that the Demo-
cratic national convention will be con-
trolled by large silver majority; and
no small uncertainty exists in the minds
of many as to how far like views may
influence the action of the Republican
convention. I do not. however, share in
such apprehension. The suspense aris-
ing from these conditions has produced
a highly feverish feeling, which causes
a postponement of buying operations,
thOuSi 81 ldI IL HAS IlOt pIOuuCtu any
extensive selling. 1t cannot be denied
that the situation is regarded as serious
ly threatening the course of financial
anairs. But in no quarter is it appre-
hended that all the evils involved in the
silver basis will be permitted to befall
the country. Men refuse to discredit the
intelligence of the American people by
supposing that suIh an insane folly
could ever become /onsummated. Poll
teal passion and partisan frenzy may
rage for time and commit some insane
eXcesses, but measures born of ignorant
rashnesS cannot stand the test of scru-
tiny and deliberation. When the silver
ties have deposited their vote, their pas
sion Will quiet down and their leaders
VIII become more amenable to reason.
After the election will come a stage of
more earnest discussion of this ques-
tion than we have yet experienced.
Moreover. with a faithful sound money
man In the presidency-of which the
republican party affords reasonable
promiSe-no really dangerous measure
could be enacted except through two
thirds majority in each house, of which
there is no present prospect. That some
substantial concession will have to be
made to the West and the South there
is no question; but that concession is
not likely to be free coinage, nor yet
any considerable increase of silver cir
culation in any form. 1t will be found
that there are ways in which those sec
tions can be helped under their strug-
giles without resort to the issue OF half
valued money. More currency is doubt
less needed for facilitating cash tran
sactions in those sections; BAT that want
can be easily satisfied through such
notifications of our banking legiSlat ton
as Will cause he note Issues to respond
readily to every real need for currency.
There is however. an important class
among both planters and farmers to
whom credit facilities are even still
more vital than more money" 1t is
well worth considering whether ar
rangements cannot be devised for sat-
isfying those wants, if not under any
now existing banking methods, yet
through authorizing other leading in
stitutions specifically adapted to af-
fording the smaller credits which this
important class so vitally need. 1t is
perhaps unfortunate that reliefs of this
character have not been offered to these
sections earlier. Had that been done.
the silver agitation might not have be-
come the burning question which it is
today, and the money issue might have
been disposed of in a wholesome man
ner and without exciting the apprehen-
sionS that are now paralyzing conf
dence. Now, however. the stage has
been reached at which alternative meth
DDS of treatment must be devised; and
therein lies the chief hope of escaping
the destructive policy of free coinage.
The country is far from having eX-
hausted all its resources for dealing
with this question. 1t does not really
yet understand the nature of the
trouble. nor the sind of treatment it
needs. Men c. ,a,ought and of action,
however. are l-,.oming arousee to the
occasion. and nothing is less likely than
that, in the end, this country will COM
nit the ridiculous suicide of enacting
free coinage