St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-17
1T IS LARGELY INCREASED AT
HOME AND ABROAD BY THE
BOND LOAN.
LESSON TO FOREIGN BROKERS
REGARDING THE TRUE WEALTH
OF THE COUNTRY, WHICH WILL
NOT BE FORGOTTEN,
ANOTHER ERA OF HARMONY
ter Relations With the British
Empire.
Special to the Globe.

Special to the Globe.
NEW YORK, Feb. 16.-In his weekly
review Of the financial situation in
Wall street, Henry Clews says:
In advices Of last week, we eX
pressed the opinion that at that time,
the full effect Of the treasury loan ne
gotiation had not been felt on Wall
street. The course Of business during
the past week has confirmed that view.
The effect Of the large speculative re-
alizing attendant on the consummation
Of the loan has more or less fingered;
but, behind that, there has been a
stronger undertone, broader DISPOSE
ton to buy, and a preponderant up
ward tendency in prices. Confidence IN
the breadth and stability of the mar
ket has made a very considerable gain,
and the dominant feeling favors ris-
ing scale Of values. London shows an
important return towards trust in
Americans" growing out of the un-
expected extent for the bids Of the
loan. The offer of nearly 600 millions
of capital is accepted there at it's un
deniable Importance as a measure of
the floating wealth Of this country and
as an affirmation of the unwavering
confidence Of our people, in spite of
the financial arrangements that for
the time being are exposing our invest
ments to foreign distrust. This spirit
of self-trust, naturally and legitimately
encourages confidence among the large
class of transatlantic investors who
have received their impressions en-
tirely from journals and bankers whose
predictions are towards their own
national investments; last weeks sur
prising expression Of loyal confidence
will afford them lesson not soon to be
forgotten. The references in the
queens speech and the subsequent dis
cussions in parliament, relating to the
Venezuelan affair, are calculated to
have good effect upon the financial
relations between this country and
Great Britain. From the tenor of
those illusions, 1t is evident that the
queens government has resolved to
remove this obstacle to amicable re-
lations with the United States; and
judging from the tenor of English opin-
ion, it is not improbable that an effort
may be made to provide permanent
arrangements for the friendly settle
ment Of all future disputes between the
two nations; which would be an i'm
mense gain towards future expansion
of the business relations which have
been recently interrupted. This coun-
try may be depended upon to receive
any advances of that nature in the spirit
in which they are intended. Possibly,
from the insularity of our position and
policy, our people might not be willing
to go so far in this direction as a
country which, owing to the vastness
of it's external relations, has a special
interest in establishing permanent
friendships with every nation possible,
but especially with the United States
Nevertheless, our people do not need
to be convinced of the advantage Of
having their relations with Great Brit
ain put upon a basis of harmony and
stability consistent with the racial
commercial and financial interests of
the two nations. Present tendencies
appear to be running in that direction;
and thus what a few weeks ago was
deemed serious danger seems likely
to issue in the achievement Of great
international advantages At present.
all this is in the diplomatic stage, and
therefore can be estimated in the mar
kets, only as a hopeful proba bility
That probability, however, has a dis
tinct market value; and that value be-
gins to be expressed in the renewal Of
investment and speculative transac-
tions at London. At the moment Wall
street discounts these probabilities
with becoming moderation; neverthe-
less, our relations with Europe are
marked by a perceptible increase Of
transactions.
The critical phase of the loan trans
action Is now passed. The fears that
some disturbance of the money mar
ket, or possibly a considerable pre-
MUM ON gold, might arise from such
a large operation have not been Just
flied by the event. The money for the
payments has been procured without
friction, or disturbance Of ordinary
loans or extra rates of interest. This
is the more remarkable considering that
so large a portion of the bonds have
been already taken up in full. and
that, by the end of this month, about
70 per cent of the issue is expected to
be finally paid for. In reality. all this
had been arranged for in advance. and
whatever arrangement in the money
market occurred happened during the
latter part of last month. The treasury
has very wisely determined to place an
important portion of its receipts from
the loan on deposit with the banks that
have most literally subscribed for the
pOHuS his prevents any large con-
traction Of the bank reserves and keeps
the loan market comparatively easy.
The net condition following this opera
ton is a steady money market, a forti-
fled treasury reserve, an elevation of
the public credit, and an improved
state Of confidence throughout the
country. The treasury, 1t is estimated.
will now have a reserve of fully $685.
100000, after allowing for Withdrawals
Of gold for paying for the bonds That
gives an interval of several months.
during which the treasury is likely to
be exempt from any large disturbance
Of it's gold fund; and it is hoped that,
during that period, arrangements may
be made which will prevent the neces-
sity for any further loans in connec-
ton with the reserve arrangements.
The loan having been accompanied
with these satisfactory results, more
solid basis is laid for Wall street opera
lions for the remainder Of the year.
The present loan rests upon more nor
NAL arrangements than that Of Feb
ruary, 1895. It involves none Of the
special regulation of the foreign ex-
changes that was connected with the