The herald., 1896-03-14
HENRY CLEW'S LETTER

New YORK, March Z, ls96.-In the Wall
street market there have been no very
important changes during the past week.
The unexpectedly unfavorable develop
ments in the affairs of the Baltimore K
Ohio railroad had disturbing effect, which
however was only brief. The action of
congress on the question of Cuban belliger-
ency WAS a distinct shock. under which
prices fell l@2 per cent; but most of the
decline was recovered later in the week.
The London market has been irregu-
lar in American securities, but not
to the extent of causing any important
return OF stocks. Among the favorable
factors have been the continued large gross
earnings Of the railroads, which are taken
as foreshadowing a better time coming;
the remarkably good showing of the an
nual statement of the Pennsylvania rail-
road-one of the representative lines OF the
continent; an active demand for railroad
bonds, especially those of the lower grades;
an improving investment inquiry for A
dividend-payiDg railroad shares; and an
easier tone in money, which shows Itself in
an increased disposition to discount COM
mercial paper.
In the general market there is marked
undertone of hopefulness. 1t is seen ttat
the conditions really exist out of which
might easily come revival of business
and a fairly profitable state of trade.
There Is certain amount of over-produc-
ton in some ndustries-especiaily of pig
iron, co ton goods. flour and leather. But
in the markets for farm products there is a
healthier fealing, the movement being
quite active and wheat being about II
cents higher than year ago. The uncer-
tainties arising from possible disturbance
of the money market, through the trea-
sury loan, have subsided. The loan mar
ket is again in a comparatively normal
condition. Commercial credit is gaining
in confidence and there is every
probability of an easy course of the
money market, at least until the fall
months. if not for the remainder of the
year. The oversupply in the cotton goods
trade 10 already in process of remedy, part
ly from voluntary contraction of produc-
ton and partly from the serious injury to
factory water powers in New England
caused by the late floods. So in respect 20
the surplus production of iron: it is being
compensated by marked increase of Or
ders for railroad material, naturally conse-
quent upon the improved earnings of the
roads. In the grocery trade, also. marked
improvement upon the protracted depres-
sion has set in.
These factors have their effect upon the
feeling in Wall street; for, taken alto
gether, they form a solid body of evidence
that the business of the country is working
towards a healthier and more active condI-
ton. But, at the same time, these
symptoms fail to have their due effect,
owing to a settled feeling of caution, which
causes poStponeInent of operations for
higher prices. This obstruction is almost
entirely due to political CAUSES. Not only
in Wall street but throughout the country,
men of business are afraid of congress.
The alarm caused by the senate's CUBA
resolutions was not due to any apprehen-
sion of a really serious disturbance of our
relations with Spain. but almost ell
trely to the exhibition which that
action made of the rash and
reckless temper of congress. First. we
have had the precipitate action of both
houses in connection with the Venezuelan
affair; next the senate's vote on silver: and
now the votes of both senate and house on
the Cuba situation, which, if acted upon,
might easily provoke the most serious con
sequences both to the United States and
the cause of the Cubans These things
have produced a profound impression as
to the irresponsibilty and the lack of
statesmanly qualities that exist among the
men entrusted with the direction and
guardianship of public aff airs Not less
are men of business disturbed at the en-
tire failure of congress TO deal with the vital
problems of currency and trea :ury de-
rangement When ci liens see great ques-
tons of public policy, public safety and
monetary integrity turned into mere occa-
sons for display of eiectoneeriug tactics,
they feel that a most serious de-
teriOratlon has come over the spirit
and morale of American states.
manship. When, in the treatment of
sr4al economic and International uues-
tions, the country sees principle forsaken
for party expediency, and the courage of
honest conviction sacrificed to either ST.
lence or cowardly compromises, they are
chilled by apprehension as to where such
drift may lead the nation. In fact, con-
gress is felt to be no longer safeguard in
times of emergency. Emergency. indeed,
has become but the occasion for public de-
ception and party trickery. In such times
congressman deal with principles and is
sues and sections as many mere pawns
in selfish money-making game of poi
tics, in which no question is deal with on
its merits, and the settlement is shaped to
crafty the ignorance or the preiudces of
the preponderant irresponsible masses.
This prostitution of Craftsmanship TO poli-
tics is becoming a very serious ele-
ment in the everyday business life OF the