The Providence news. (Providence [R.I.]) 1891-1906, 1896-08-06

AN OPTIMISTIC VIEW.
Wall Street Has Discounted the
Worst to Come.
Silver Scare Is Waning and Gold Cam
paign Under Way.

Holmes a. Company OF the New York
Stock Exchange are optimistic in their
forecasts for the imme6 late future of
business and base their claims on the
fact that the general public is beginning
to realize how little the talk of Populists
and silverites amounts to and also on the
fact that the campaign in the interest of
honest money has begun In earnest.
In their latest market letter published
late enough to have taken into consid'
Grafton all the factors but the compare
lively unimportant Moore failure they
say:
"Wall street has now discounted the
worst tnat could possibly happen.
The banks have restored the gold re-
serve most effectually. IL has risen to
over $lO6, 0O0, 600, and the example OF
confidence thus given has not been lost
on the community at large.
Gold boarding has ceased, or is only
carried on In small way by people
whose action has no particular signifi-
canoe. At the same time the foreign
banking interests OF the metropolis have
performed most important and effec-
tual service. The details of their syndi-
cate which were completed last week in
clude the supplying from time TO time,
up to November, OF no less than S75, 600, :
600 in bills OF exchange, or about the
legitimate requirements OF our foreign
trade for that period.
The Russian and other governments
that have been drawing on us for gold
at will, will have to 60 elsewhere. This
should have been done long ago, but at
this juncture il Is a most beneficial move
--one the effects of which are scarcely
appreciated as yet, either by the street
or the busiess public. The banks aud
bankers have, in short, done their part,
and 1t remains for the business world to
get up its courage, and recognize that
the situation Is not desperate one by
any means, that the enemies OF business
prosperity have shown their full strength
ar the outset, and that the su ubstanl ial
forces of the country are on the side of
sound money.
London gave this market some anxiety
last week. Nevertheless it continues 10
be, In the main, a supporter of the bull
side OF our speculation. The fort
nightly settlement there rev ealed q very
large open account on the long side of
the American market and some llquida-
tion ensued. 1t was only tenn
porary, however. and the Brit
ishers are still adding to their hold
lngs. since the movement began
London has bought 10000 shares
OF our stock. The extent OF London Is
holdings OF our securities is now mat
ter OF interest. Estimates of the amount
OF American stocks end bonds owned on
the other side are net essarily based on
inconclusive data. Taking the twenty
odd railroad corporations, whose stocks
have an international quotation, we find
lnat the sum total of their share capital
is about u, 400, 100000. At the curt ~.t
market prices these shares foot up mon
ey valuation of little less than $500,
0OO, ,OO0. Now London, or rather all Eu-
rope, Is far from holding all OF the secu-
rites represented by these totals. Even
III half OF them are owned by the other
sid, land that probably goes beyond the
mark,) the Inference would be that $3.50,
600. 600 worth OF the leaaing stocks are
lodged there but il mast be turtle noted
that very large proportion are not held
for speculation, but by investors who
would be loatb to sell, even under the
most adverse circumstances.
Dread of liquidation by London Is in
our opinion iliusory but, even IL il should
be precipltatec, the amount OF securii les
and the values represented are so small
that there Is no need for fear on this
score. in fact, viewing the situation In
all It's bearings, it may be said with
every confidence that Europe will buy
rather than sell, and the further point
may be made that at the present time il
has not repurchased anything like the
amount OF our stocks and bonds that
were cast upon our market when the Bar
ing crisis enforced general liquidation
there.