The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-06
MINING SHARE
Doubleday. Rope & Co.. Of Colorado
Springs. Col. give the following quotations:
The Financial situation.

on the financial question, says: Since the
excitement connected with the Venezuela
scare. Wall street has fallen into a subdued
mood. 1t has no longer the daily alarm of
London and continental realizing on our
market; those markets have apparently
nothing more they want to SELL and seem
quite willing to keep what they hold for
future developments. This naturally pro-
duces more settled feeling on the Stock
Exchange; but ii has not yet produced
buying, partly because the holiday inter-
ruption of business is in force and will con-
tinue until next week, when the drift of the
market will be more apparent
AT the moment, there is a good deal of
discussion about the effect of the impending
new loan, the majority opinion evidently
being that 1T will prove to be a substantial
bull factor. Nothing yet has been Off
cially revealed as to the details of the loan
Unofficial outgivings however make 1T GER
tain that the subscribers will undertake to
purchase two hundred millions of.the tours
of 1919 should the government require
but at the same time the amount 10 be
taken at present will not exceed one hun
dred millions. and probably those will be
taken up in installmentS extending over a
few months. The bonds will be payable
lin coin." and will be paid for in gold;
which, at the reported price of 10i. would
transfer TO the government 10i millions of
gold. At first sight this operation,
pecially as 1T will be almost entirely con-
lined to the home market, may seem call
culated to produce sharp stringency in the
money market. That effect however would
depend upon what the treasury might do
TO ward off such result. The treasury Is
certainly very vitality interested in using
any power 1t possesses to avert Stringency;
and the power it has to do that is very
considerable. The Secretary of the Treas
his cash balance on deposit with the banks,
receiving United States bonds as collateral
to like amount. His present working
balance would easily admit of his depositng
n wi
the banks, which would prevent any
Injurious stringency, although il might per-
nit a full per cent. market rate of inter-
est: Such a rate would be a positive gain
under existing circumstances. for in so far
as 1t exceeded the European rate il would
tend to keep foreign call balances here and
might even bring gold to this side the At
lantic. Apart from this, the authorization
by the clearing house Of the issue of loan
injurious to the banks customers; and, be-
sides. we have now reached the season when
money begins TO flow back from the in
millions surplus reserves in the banks
There thus seems to be no sufficient reason
for fearing any stringency at all embar-
RAISING TO the stock market.
AS matters now look there Is every pros
pot of the loan arrangements being
s1mmated within the course OF a few days.
The banks not only of this city but of the
country at large have become thoroughly
aroused to the Importance of making COM
mon cause with the treasury in elevating
government They realize that with weak
ness in the treasury there cannot be real
strength in the banks: and they therefore
do not hesitate to make their gold stocks
available for the gold requirements Of the
national government This Is a bona fide
exhibition of patriotic finance; and the spec
tacle will convey edifying lesson to the
foreign critics who have charged us with
financial incapacity and feebleness. 1t will
show them that our financial prowess par
allels the vastness of our domain and that
the patriotism of our financiers Is equal TO
their duty as American citizens. The spec
tacle of the country's banks offering to lend
the treasury one-fourth of their capital TO
sustain its honor is one that will not fail
OF its merited effect upon the respect and
the confidence OF Europe. and ii must ulti-
mately have a valuable bearing upon the
transa tlautic estimation of our securities
If any real apprehension has been felt
about the possibility of the Venezuela dis
pute resulting in war the President has
done much toward removing that fear by
his selection of members of the commission
charged with inouiring into the validity of
NeneZuela's claims. The high character OF
those gentlemen for legal learning and
knowledge OF international law, as well
as FOR their judicial mpartiality and honor.
gives the best possible assurance that their
report will accord with the facts and JUS
tice of the case. and that affords the best
possible assurance of ultimate pacific
settlement OF this anxious question
The banks and the United States treasury
are bound together inseparably at the pres
emf time United they stand, divided they
to the banks what blood is to the human
body. If the blood becomes fouled the BODY
Is sure TO be inoculated with disease So
with the legal-tender notes-if they are not
kent in 2 sound condition the veins through
out the banking system imbibe the virus
attached to them. The banks and the gov
eminent must pull together until they can
safely pull apart. and that they cannot do
until we obtain gold enough in the country
to take the place OF the legal tenders This
devcutly to be desired condition will I'm all
probability come about In the course of a
few years by the Increase OF our precious
metal production. In this country the hunt
Is now for gold, and not for silver The
former Is in fashion. the latter Is not This
Is an age OF invention-necessity inspires
inventive genius. Until recently mines with
ore that did not produce several ounces OF
gold were Improbable to work but with
the machinery and appliances ore from
which one quarter OF an ounce OF gold can
be extracted Is now remunerative This is
the principal reason for the increased output
OF gold IL will surely bring about gold in
fiation, not unlike that caused by the discov-
cry Of gold in California IN 1919 Who are
the ricn men OF to-day? Prominently among
them are the Mills, Floods. Mackays, Hursts
Crockers. Fairs. Huntngtons and Hopkins
all California multi milionaires. and all OF
whom when the gold fever broke out were
tashing young men. venturesome and enter
prising. They pushed TO the new E,dorado
almost on foot and have all come back In
their four-in-hands- History repeats itself
The same thing Is going now. The gold
mines in Colorado. Arizona. Nevada and