St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-01-20
100000 COULD BE TAKEN
TWICE OVER.
SHOWS A NATIONS STRENGTH
RENEW CONFIDENCE
ABROAD.
SOME sTRINGENCY IN LOANS
Caused by boarding of Gold for
Bonds-Henry CIews' Financial
Review.

| Special to the Globe.
NEW YORK, Jan. 19-In his weekly
review of the financial situation Henry
Clews says:
The Wall street markets remain gen.
orally quiet. There is now almost an
entire absence of the spirit of distrust
evoked by the Venezuelan affair; and it
is taken for granted that the DISPOSE
ton on both sides to settle the matter
through arbitration, or by conference
between Great Britain and Venezuela,
Will prevent any further disturbances
OF public confidence. There is also a
disappearance of the London district
towards our investments which forced
nome such large amounts of stocks and
bonds Immediately after the president
message; and, beyond an indisposition
to subscribe for the new bonds, nothing
unusual remains in our financial rela-
tons with Great Britain.
In the stock exchange the principal
obstacle to business lies in the uncer-
ta1nty as to the incidental bearings Of
the subscriptions to the new loan
mere mas been considerable contrac-
ton of bank loans ($20, 900 for the
Two weeks ending Jan. 100, in anticipa-
ton OF possible stringency in money
When the subscriptions to the bonds
nave to be paid, and also due to the
ture at the end of this month; but the
preparations already made for these
contingencies are generally regarded as
largely sufflc1ng to protect the market
against any important embarrassment
under these prospective conditions.
The change in the terms of payment
Tor the bonds announced by Secretary
Carlisle-namely, 20 per cent on ac-
ceptance of the bids and 10 per cent on
n
ease the pressure Of the operation upon
the money market. Upon the whole,
therefore, the proba bilities may be re-
garded as against any embarrassing
strlngency being caused by the loan
operations; and yet, with the cautious
tone existing in all quarters, there is a
disposition to postpone operations in
the stock market until these contin-
gencies are past. AS to prices. how
ever, the feeling is one of confidence,
and even the bears show little de-
sire to put themselves Short on the
market
There is every indication that the
subscriptions to the United States loan
to be opened Feb. will easily take
UP the entire 100000, 900 bonds offered.
The bond syndicate, realizing this fact,
concluded to step out, which, to say the
least, is a magnanimous act The an
iioUiiSSiiicHI VI the dissolution OF the
syndicate, however, reveals the fact
that the syndicate had received SUBJ
scriptions amounting to 100000, 900,
which amount was pledged to be paid
into the United States treasury as re-
qu1red, thus showing the supply Of gold
In this country ready to go into govern
ment bonds at a remunerative rate, and
which must be a surprise not only at
home but abroad. After this exhibition
of gold strength, it will scarcely be fair
for European bankers and others to
continue their predictions that the Unit
ed States government will be unable
to maintain gold payments.
The passage of the increased reve-
nue. bill now in the senate will carry the
government out Of the present deficien-
cy rut. Then if congress will pass Sen
ator Sherman's measure, compelling
the treasury to retain all notes re-
deemed in gold until they can be put
back into circulation through an eX-
change for gold 1t will put the govern
ment finances on sound basis; as
Stunning, of course, that some addition
will be made to the bank circulation to
compensate for the Withholding of the
legal tenders from use. In such an
event, the gold reserve can drop down
below 100000 periodically without
any shaking Of confidence.