The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-01-06
FINANCIAL REVIEW.
Henry clcws's Weekly Letter on
the Business Outlook.
THE MORE SETTLED CONDITION
orThlas. on Wall street Following the
War searo-Erset Of the rmpohding
New Loan-Banks and the Treasury
Hound Togethsr-The Increased Output
ofGold and the Reason for II.


NEW YORK. Jan. 4,-slnce the en-
element connected with the Venezue-
Ian scare, Wall street has fallen into n
subdued mood. It has no longer the
daily alarm OF London and continental
reaiiEingE on our market; those mar
kets have apparently nothing more
they want TO sell. and scen quite will
Ing to keep what they hold for future
developments, This naturally produ-
,ces a more settled feeling on the stock
exchange: but II has not yet produced
buying. partly because the holiday In
terruption OF business Is In force and
will continue until next week. when
the DRIFT OF the market will be moro up
parent.
At the moment. there is a good deal of
discussion about the eject OF the i'm
pending new loan, the majority opinion
evidently being that It viii prove 20 DO a
substantial DULL factor. Nothing yet
has been officially revealed as to the de-
tails of tho loan. Unofficial outglvinB3
however make II certain that the sub
scribers will undertake 10 purchase 200
millions OF the 4s OF 1875. should the
government 30 require; but at the same
time the amount 10 be taken at pres
ent will not exceed 100 millions. and
probably those will be taken UP In in
stalments extending over few months
The bonds will be payable In colin"
and will be paid for In gold; which, at
the reported price OF l04. would trans
fer to the government 1N millions OF
gold. At first sight this operation. es-
pecielly as II viii be entirely confined
TO the home market, may seem calculat-
ed TO produce a sharp stringency In the
money market. That effect, however,
would depend upon what the treasury
might do TO ward OF such n result.
The treasury is certainly very vitality
interested In using any power II pos
sesses to avert stringency: and the
power II has TO do that is considerable,
The secretary OF the treasury has Ru-
thority TO keep any amount o; tie cash
balance on deposit with the banks. re-
ceiving United States bonds as coilRter-
al to like amount. His present work.
ing balance would easily admit OF his
depositinB rs millions OF legal tOnders
with the banks. which would prevent
any injurious stringency. although II
might permit full per cent market
rate OF interest. SHch rate would b.
q positive gain under existing circum-
stances; for in so far as Il exceeded the
European rate II would tend TO keep
foreign call balances here and might
even bring gold to this side OF the At
lRntic.
As matters now look. there Is every
prospect OF the loan arrangements be-
ing eonsummnted within the course OF n
few days. The banks not only OF this
city but OF the country at large have
becoms thoroughly aroused TO the I'M
porthncp OF making common cause with
the treasury in elevating the status OF
the demand obligations Of the govern
ment. The spectacle OF the cuuntryrs
banks Offering to lend the treasury one
fourth OF their capital TO sustain It's
honor IS one that will not fail OF It's
merited effect upon the respect and the
confidence OF Europe. and Il must ulti-
matcly have valuable bearing upon
the transatlantic estimation Of our Sc
curit!es.
The banks and the United States
treasury are bound together insepGra-
bly, at the present time. United they
stand, divided they fall. United States
legal tender notes are 70 thu banks what
blood Is TO the human body. II tho
blood becomes foul the body Ia sure to
be lnoculated with disease. So with
the legal tender notes-it they arO not
kept In a sound condition the veins
throughout the banking system imblbe
the virus attached TO them. The banks
and the government must pull together
vntil !.ay con safely pull apart. and
that they cannot safely do until we OBJ
tain gold enough In the country to take
the place OF the legal tenders. This de-
voutly TO be desired condition will in
all probability come about in the course
OF 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 Ia In fashion
the latter Is not. This 10 an age OF
tnventton-uecessity inspires inventive
genius Until recently. mines with ore
that did not produce several ounces OF
gold were Improbable TO work: but.
with the new machinery and appliances
orc from which one-duarter OF an ounce
OF gold can be extracted r. now rcmun-
erRtive.
This is the principal reason for the tn
creased output OF gold. II will surely
bring about gold innNtion not unlike
that caused by the discovery OF gold IN
California IN ls49. Who are the rich
mon OF to-day? Prominently among
lANAll AlU AsAAttot lSOAns AHhSNASpt
Hurts, CrockerR, Fairs, HuntinRtons
and HopkIns-all California multi-mIll-
iOnnires, and all OF whom when the gold
fever broke out were dAshins young
men, venturcsome and cnterprising
They pushed to the new EldorRdo al
most on foot aid have all come bHck in
their fourth hands. History repeats
Itself. The same thing is going on now.
The gold mines in Colorado, Arizorn.
Nevada and elsewhere arc calling tho
rising generation OF young mon TO make
their golden mark. as did the brilliant
youths whom / have referred to do in
1870 Who knows what they wont do
IN meeting tho present craze for gold?
This, II appears 10 me. Ia the way out OF
our present grecnhack difficulty. and X
Il 80 rcsults-Rnd surely II will or else
all Indications fGil-then, and not till
then, will II do to take up md cancel
the greenbackS TO supplement them by
gold coin. Meanwhile X were better to
boar those ills We have rather thnn fly
to others that we know not Of" Green
backs ArO good money until we can get
better, and that only Is gold.