St. Paul daily globe., 1896-04-06
FINANCES IMPROVE
HENRY CLEWS VIEWS THE SIT
UATION MORE HOPEFULLY
THAN FOR MONTHS.
RAILWAY EARNINGS INCREASE
FEELING I'm WALL STREET BET.
TER--M0NEY PLENTIFUL AND
IN DEMAND.
RECoNsTRUCTIoN OF THE N. p
Considered Virtually an Accom-
pIished Fact-NO Sudden Active
ity Predicted.

NEW YORK. April SIN his weekly re-
view Of the financial conditions In Wall
street, Henry Clews says:
AS indicated last week, April opens with a
better feeling in the Wall street market. The
currency sent into the country for the usual
April settlements is returning; and, as the
banks now see nothing to prevent a steady
and comparatively easy course Of the money
market until the fall crop movement sets in,
there is more disposition to make time loans,
and at rates satisfactory to the stock houses.
slight furry has been caused by the close
approach Of the rates Of foreign exchange to
the point admitting Of exports of gold; but
that is movement only natural to the sea-
son; and if it should cause some Withdrawals
Of legal tenders from the banks to procure
gold from the treasury, the present condi-
tions of the reserves and the influx of money
from the interior may be trusted to prevent
any appreciable scarcity Of loanable funds.
The discount market may quite possibly ex-
hibit some appearance of eloseness for some
weeks or even months to come for, in certain
industries, there is an overproduction and a
carrying of large stocks Of goods which in
duces caution towards paper coming from
no means general feature in relation to
mercantile paper; it rather concerns indus
trial than mercantile credits; and this feel
ing among the banks is perhaps interpreted
for much more than 1t really means and, for
that reason, may be expected to soon abate.
So long, however, as it continues, it will be
factor favoring preference for loans on
stock collaterals and will therefore tend to
keep down the rate in "call" money. To
this extent, the prospect as to the supply Of
money for stock exchange purposes is favor
able, within the range of the next few
months.
We cannot but repeat the opinion previous
ly expressed in these adyices, that the feeling
at present prevailing at this center is not a
fair reflection Of the tone of business in the
country at large. For the moment, this city
as the chief center Of industrial capital, has
certain adverse circumstances to contend
against; and although those conditions may
call for prudence and caution, yet there Is
no reason to anticipate really serious conse-
quences from them, and they may be ex-
pected to work out their own remedy through
enforcing a better adjustment between de-
mand and supply in certain Industrial staples.
Ihe sooner these exceptional conditions are
viewed with discriminating Judgment, the
better for all parties. 1t leads to needless
distrust when differences against the whole
BUSINESS OF the country are drawn from con-
ditions which apply only In restricted local
ity and to few interests-though the inter-
ests may be important ones. Such misjudg-
ments, however, cannot long prevail; and no
serious mistake will be made in expecting an
early recovery from the exaggerated pessim-
ism which just now prevails to some extent
in this city.
Even pessimism, however, has its conpen-
sations; for 1t sometimes helps to compel de-
sfrable results not otherwise procurable This
sort OF effect is now apparent in the mitiga-
ton OF stubborn obstacles to the settlement of
1nsolvencies among the railroads. The North
ern Pacific reconstruction may now be re-
garoed as a virtually accomplished fact The
settlement OF the long-pending disputes be-
tween the government and the subsidized Pa
clnc lines also appears to be in fair way
towards adjustment. These long-pending de-
rangements have long had seriously depress-
ing effect upon railroad investments, not only
in this country, but still more in Eurone
They have also had the effect of keeping stag
nant large mass Of securities which had
previously been actively dealt in at the stock
eXchange and this must be regarded as one
OF the chief causes of the protracted depres-
sion In speculative transactions The pros
pect OF these settlements may therefore be re-
garded as hopeful feature In approachine
conditions.
Taking broad outlook on the questions and
the oislocat1ons that have been so deeply un-
setting confidence. we see on all sides the
evidences OF steady and cautious approach
towaros remedial readjustment. There is a
more intelligent comprehension of the situa-
ton, its causes and its remedies, among the
people at large than existed but few months