The herald., 1896-04-09
CLEWS' WEEKLY LETTER

paratively easy course of the money
market until the fall crop movement
sets in there is more disposition to make
time loans and at rates satisfactory TO
the stock houses. A slight furry has
been caused by the close approach OF
the rates of foreign exchange to the
point admitting of exports or golu, put
that is a movement only natural to the
season, and if it should cause some with
drawal of legal tenders from the banks
to procure gold from the treasury, the
present condition of the reserves and
the influx of money from the interior
may be trusted to prevent any appfecl-
able scarcity of loanable FUNDS. The
discount market may quite possibly eN-
hibit some appearance OF cloSeneSS LOT
some weeks or even months to come; Tor
in certain industries there is an over
production and a carrying of large
stocks of goods which induces caution
towards paper coming from these spe-
cific sources. This however, is by no
means a general feature in relation TO
mercantile paper; it rather concerns
industrial than mercantile credits; ana
this feeling among the bankers is per
haps interpreted for much more than
it really means. and for that reason may
be expected soon to abate. 80 long,
however, as it continues it Will be fac-
tor favoring a preference for loans on
stock collaterals and will therefore tehd
to keep down the rate on call money
To this extent the prospect as to the
supply of money for stock exchange
purposes is favorable within the range
of the next few months.
We cannot but repeat the opinion pre-
viously expressed in these adVices that
the feeling at present preVallnS at liiiS
center is not a fair reflection OF the
tone of business in the country at large.
For the moment this city. as the chlet
center of industrial capital has certain
adverse circumstances to contend
against. and though those conditions
may call for prudence and caution, YET
there is no reason to anticipate really
serious consequences from them, anc
they may be expected to work out then
own remedy through enforcing better
adjustment between demand and sup
ply in certain industrial staples. the
sooner these exceptional conditions are
viewed with a discriminating Judgment
the better for all parties. 1T leads 10
needless distruSt when inferences
against the whole business of the coun-
try are drawn from conditions which
apply only in a restricted locality and
to a few interests-though the interests
may be important ones. Such misJudge-
ments. however, cannot long prevail
and no serious mistake will be made in
expecting an early recovery from the
exaggerated pessimism which Just now
Even pessimism however, has its
compensations; for it sometimes
helps to compel desirable results not
otherwise procurable. This sort Oh
effect is now apparent in the mitigation
of stubborn obstacles to the settle-
ment of insolvencies among the rail-
roads The Northern Pacific recon-
struction may now be regarded as
virtually accomplished fact. The set
tlement of the long pending disputes
between the government and the sub
sidiZed Pacific lines also appears to be
in a fair way towards adjustment.
These long pending arrangements have
long had a seriously depressing erect
upon railroad investments, not only in
this country but still more in Europe.
They have also had the effect of keep
ing stagnant a large mass of securities
which had previously been actively
dealt in at the stock exchange; and
this must be regarded as one of the
chief causes of the protracted depres-
sion in speculative transactions. The
prospect of these settlements may
therefore be regarded as hopeful fea-
ture in approaching conditions
The unexpectedly outspoken protest
of the Republican state conventions
on the silver question has most en-
couraging effect upon confidence
among the investing classes. Instead
had been feared, there has been the
| plainest declaration for the mainten-
ance of the gold standard as against
attacks from the silver faction. This
; eXplicitness is all that could be de-
| sired, and it strikes the country as far
| better than was hoped for. The i'm
| portance of this attitude lies in the fact
| that it shows a great. positive progress
| in public opinion in favor of the sole
| gold standard and against any further
commitments tO silver There can be
no backsliding from the position thus
taken; and in this very important re-
| spect the country finds assurance and
| safety. This assurance is immeasura-
| bly, valuable and cannot fail to have a
| most important effect upon confidence
| in every ramification of finance. 1t
| now seems a fair conclusion that q
| sound foundation stone has been laid
! in public opinion for the structure OF
| our future currency system. rms
| first great step being thus virtually
won, we can afford to deliberate pa
| tiently and wisely in determining what
shall be the remaining contributions
| towards the reconstruction of our mon
| etary system upon sound. broad
| elastic and permanent basis. The
| house committee on currency anC
| banking are working earnestly and in
| telligently towards maturing an ac-
l y
| The various measures before them are
each directed towards methods which
| would afford vast Improvement upOI
| existing arrangements; but the differ
ences in detail may prevent an agree
| ment during the present session; an6
| both in congress and out there are pref
| udices and misconceptions so stub
| born that it may be the WiSest colrs
to allow further period of public dis
cussion for their removal Indeed
| among those best acquainted with th
| present immature state of public opin
ion on the question, the feeling appear
! to be that the country is not yet rip
for thoroughly regulated settlement
Taking a broad outlook on the ques
tions and the dislocations that hav
been so deeply unsettling confidence
we see on all sides the evidences of
steady and cautious approach toward
a remedial adjustment. There is
more intelligent comprehension of tn
situation. it's causes and its remedie.
among the people at large than existe
but a few months ago. The country
not unreasonably impatient for solu
tion. 1t appreciates the complexity {
the questions involved: and so long a
it is satisfied that progress is bein
made on the right line, it would prefe
careful deliberation to a hasty and in
complete readjustment. The point ma
been reached however, at which
great revival of confidance is inevltabl
both at home and abroad; the pr1ncipl
of the gold basis has been irrevocabl
affirmed, and all that remains to {
done is the formulation of the detail
! aS tO the minor forms of money. Ihe