The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-02-15
FINANCIAL SITUATION AND THE
LOAN.


American Banker.
The general advance OF values on the
New oYrk Stock Exchange is Indicative
OF the better feeling which now prevails
In POLITICAL as well as financial matters.
Most active stocks touched their lowest
point during January on the 1th. the
aay after the call for bids on the gov
ernment loan. The nature Of that ne
gotiation. which looked for time as II
n would involve disturbing loss Of cash
wher. the reserves were already low, was
probahly the main factor in causing the
depresSion. Since then the recovery has
been quite general and steady, and shows
little reaction on the eve OF the distribu-
ton OF the loan. The emergence OF a
less warlike sentiment throughout the
country, and the evident disposition OF
our people to invite = peaceful solution
OF international difficulties, despite the
popular enthusiasm for strife which the
Venezuela matter had developed. had
also contributed to the general results
which we now see. On the whole, the
period which has interviewed between the
call for bids and the opening Of the offer
Inrs on February Is. from banking
standpoint. fun OF extraordinary features
banks have thrown about the treasury
gold reserve during the time, maintained
as il was to the extremity OF n premium
upon gold. Is not the least interesting
OF the pronounced characteristics OF the
period. Had II not been for this action,
who can doubt but that the treasury's
gold store would now be practically ex-
haustedg II this policy had the neral
effect OF reviving confidence abroad. the
treasury crisis which has been generating
recurring seasons OF acute distrust dur
ing the last two years will be divested
for a time of its evil genius. We have
not reached that point where our own
savings are ample for the prosecution OF
all those avenues OF profit which the
country's resources offer. But foreign
capital cannot be expected TO come in TO
supply our remaining needs unless the
standard upon which we are now con-
Quoting our financial affairs is strictly
maintained II we could now secure
some favorable action from congress in
that direction, supplementing the efforts
Of the administration. the situation would
quickly adjust itself upon a substantial
basis. This, however, is impossible. be-
cause congress is itself divided. the SEN
ate having again proved its unfitness to
legislate intelligently by passing a free
silver coinage bill. 1t is OF some value,
to be sure, that the currency situation
cannot. for the time being. be changed
for the worse by the legislative. enact
ment. since the house OF representatives.
which CONS as near to the popular will
as the senate is remote from II. is not
disposed TO adopt a subversive course on
the currency question. Returning to the
bond issue, opinion crystalized on the
expectation that the offerings would run
from los to Ill. The disposition Of the
banks to subscribe extensively manifest
ed itself in numerous applications for
circulation submitted to the controller
OF the currency and the numerous in
ouiries relative to the price of the bonds
received from interior correspondents by
the New York banks. In their Efforts
to prepare fer an extremely heavy draft
upon their reserves the banks OF New
York. as we have already pointed out.
began to contract their loan issues. To-
day these banks are so well equipped
that the first payment, say 1t aggregates
so OOO. 500. will be made with far less dis
turbance than had been thought inevita-
ble II was the PERCEPTION of this fact
that aided, with other important con-
siderations in stimulating the existing
revival OF values on the Stock Exchange.
In the presence of this intense competi-
ton for funds between the productive
agencies Of the nation and the govern
ment itself, the error which the latter
committed at the beginning Of its bor-
rowing policy. in not negotiating a loan
OF such capacity as to include all the
loans that have been negotiated up to
this time, exhibits its most serious side
The largest loan is demanded when the
bank reserves are lowest and the needs
Of businss growing.