The herald., 1896-05-08
CLEWS' WEEKLY LETTER

CLEWS' WEEKLY LETTER
NEW YORK, May 2.-Wall street is
getting upon its legs again cautiously
and with some hesitation The spring
squirt has given it some encourag cement.
and other influences have helped to re-
Vlve condolences; but the old spirit of
t1nidfty easily returns, and during the
past week events have caused some real
| lzing on stocks bought under the late
recovery of tone. The market is very
sensitive to whatever is likely to affect
London holdings of stocks. Foreign pol
itics are consequently watched closely,
and especially occurrences affecting
British political interests. The appre-
hension that something untoward may
yet turn up in connection with the Vene-
zuelan affair still haunts some minds.
others fear that some morning we NAV
awake to md ourselves seriously impli-
Gated in the Cuba struggle. There is
also the political enigma-what is to be
the outcome of the party conventions
on the silver question. which attracts the
more interest as the events draw nearer
and may soon become the occasion for
dererring operations until the events
have solved the mystery. Those who be-.
lleVe that the sun of finance revOlVes on
a golden axle have found occasion for
n
renewed exports for the yellow metal,
and history has been ransacked to dis
cover that, in normal years, we have
shipped considerable gold in May, leav-
ing it to be illogically Inferred that what
has happened in normal times is sure
to recur under the present abnormal
conditions. The real alarm of the week.
however. has been the launching of the
Boer thunderbolt. The solemn sentence
ing to death of the enterprising Britons
who had hoped to compel the South Afri-
can republic into some important ces-
sions of gold territory so deeply reused
the war spirit OF England that consuls
rapidly declined and the London mar
ket prepared to put itself upon war
footing, while Paris, no less alarmed
threw large amounts of African stocks
on the London market. thereby turn
ing our exchanges in favor of Paris and
singularly making it a paying opera
ton to ship gold from New York on
french account. What might have come
out of these complications between the
greatest state of the world and the pret-
tiest republic it is not easy to say, had
the state of things been permitted to last
another twenty-four hours. The case
was made the more serious by the in
tervention of settling day" at London,
and all the material existed for a grand
Joint melee of politics and finance.
While, however, London feeling was
rising to the war pitch, President Kru-
ger was humanely nullifying the fatal
decree of his law court. and within
twenty-four hours the death sentence
upon the four martyrs to a gold raid
was commuted and the penalties pro
nounced against the milder Offenders
were in process of mitigation. The dan
ger was really far more serious than our
own market supposed it to be, and our
ignorance of the London situation kert
.I,r
seady in the face of what seen to have
been very grave possibilities.
There seems to be reason for hoping
that this threatening Kaffir question
has now passed the danger point. Kru-
gers communication of the raiders SEN
tences shows that he appreciates that
there must be some concession toward
the influential sentiment that has con-
solidated the BritishAfric against
the needless eXcluSiVeness of BOer rule;
and if he wisely deals with the inevitable
issue. there is little ground to apprehend
further trouble between England and the
TranSVaal. So also, in respect to the
British advance toward the Soudan; the
situation there appears to be less likely
to develop into an international danger
than has been feared. The Dervishes
are encountering difficulties which they
dread more than the English troops. They
are threatened with famine and their
the last accounts, the leaders were in full
retreat. IL France also matters appear
to be taking more pacific turn. Neither
the Legislative corps nor the president
seem now prepared to precipitate such
serious issue as they have lately ap-
peared to court and the new inStry
may provide a modus vivendi that will
pave the way for pacific settlement of
the question of precedence as between
the two branches of the legislature.
Thus, 1t seems as though the disturbing
elemtns which for some months past,
have been threatening the peace of E,u
rope We're subsiding towards at least
temporary peaceful adjustmentT These
drifts are of great Importance to Ameri-
can financial interests, For, after three
Years of estrangement from our invest
ments, there has been in London and
Berlin a return of disposition to take
the better class of ecurities. The safety
of the country against the silver danger
appears to be becoming better under
stood abroad; which, after all, has con-
tributed more than all other causes COM
bined to create distrust agah.St our Sc
curities.
Under the conditions above sketched.
Wall street, at the close of the week,
is recovering from the furry in the earl
Ter days. In purely domestic cOndi.
tions there are some distinct improve
ments The distributing trade shows
more dtllNl ANU lllt ltIIutlltN VI ~ iNtfb
in many kinds of merchandise is toward
higher figures. Crop reports show more
recovery from the unfavOrable c"rdi-
tions with which the spring o-aned
than has been hoped for. The earnings
of the railroads continue comparatively
good and freight rates are we'll main
tanned. The feeling among manufac-
turers is somewhat more hopeful. The
process of forming combinations for
the regulation of competition is extend
ing from one industry to another and
promises to place the current oVer-pro-
duction under wholesome restraint. The
excitement connected with preparations
lOr the political conventions can hardly
he said to take any deep hold on Wall
street: for the feeling is very general
that the conventions will make a strong
record in favor of sound money. These
are factors which favor steadiness and
confidence In financial values, and which