St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-06
WAITING FOR A LOAN.
Prospects of One Has Done Mach ts
Strengthen Wall Street Markets.

strengthen wall Street Markets.
Special to the Globe.
NEW YORK, Jan. 5.-In his weekly
report of the financial conditions In
Wall street, Henry Clews says
Since the excitement connected with
the Venezuelan scare, Wall street mas
fallen into a subdued mood 1t has no
longer the daily alarm of London and
continental realizings 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.
produces more settled feeling on the
stock exchange; but it has not yet pro-
duced buying, partly because the holi-
day interruption of business is in force
and will continue until next week, when
the drift of the market will be more ap-
parent.
At the moment, there is a good deal Of
discussion about the effect of the I'M
pending new loan, the majority opinion
evidently being that it will prove to be-
a substantial "bull' factor. Nothing
yet has been Officially revealed as to the
details of the loan. Unofficial outgiv-
lngs, however, make 1t certain that the
subscribers will undertake to purchase
two hundred millions of the As of 1875. /
shoutd the government 50 require; but
at the same time the amount to be taken
at present will not exceed one hundred |
millions, and probably those will be
taken UP in installments, extending over
a few months. The bonds viii he nav!
able 'in COIN and will be paid for In
gold which. at the reported price of
lo4, would transfer to the government
one hundred and four millions Of gold.
AT hrst sight this operation. especiaIIv
as 1t will be almost entirely confined to
the nome market, may seem calculated
10 produce sharp strlngency 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 vitally inter
esled IN using any power it possesses To
avert stringency; and the power it has
10 DO that is very considerable. The
secretary of the treasury has authority
10 Keep any amount Of his cash balance
on deposit with the banks. receivinp.
I, Unlted states bonds as collateral to a
IKE amount His present working bal,
ahce would easily admit of his deposit
ing seventy-five millions of legal ten
uers with the banks, which would nre-
w vent any injurious stringency, although
1t might permit a full per cent market
rate OF interest. Such a rate would he
a positive gain under existing circum
stances; for, in SO far as it exceeded tba
european rate, 1t would tend to keen
foreign call balances here, and might
even bring gold to this side of the At-
iantlc. Apart from this, the AUTHORIZE
tlon by the clearing house of the Issue
Oh loan certificates" would prevent anv
stringency injurious to the banks, cns.
toners; and, besides, we have now,
reached the season when money begins
to flow back from the interior, and that
rehux starts with sixteen millions sI,re
plus reserves in the banks. There thua
seems to be no sufficient reason for fear.
ing any stringency at all embarrassing
to the stock market.
II any real apprehension has been fe1t9
ABOUT the possibility of the Venezuelan
dispute resulting in war, the president
mas done much towards removing that,
iear by his selection Of members of tbe
commission charged with inquirine into
tne validity of Venezuela's claims Tho
hlsh character of those gentlemen for
Iegai learning and knowledge of inter
natlonal law, as well as for their indt-
clal 1mpartfality and honor. gives thai
pest possible assurance that their ra.
port Will accord with the facts andi
justice OF the case; and that affords tba
pest possible assurance of an uItimatal
ton ~4ous queS~