The herald., 1896-06-18
CLEWS' WEEKLY LETTER
NEW YORK. June 13. 1896.

IN T. w xONh, uIlC 10, 4coO.
The chief event If the past week on
the stock exchange was general break
in prices on Thursday. Ostensibly 1t
was due to the circu alton Of a Washing
ton rumor that the resident would send
a message to congress relating to Cuban
affairs calculated to disturb confidence.
Owing to the prevailing uncertainty as
to what attitude the party conventions
may assume towards silver, this report
easily had its effect, though 1t was soon
discovered to have no foundation; and
consequently the market has since re-
covered nearly the whole decline.
At the same time, there is no disguis-
ing the fact that, in erery department
of finance, business is held in the sever
est restraint until daylight breaks on
the great pending danger connected with
the seeming possibilities Of silver be-
coming the basis OF our currency system.
The bank and financiers renerally think
il soon enough to take decisive measures
for their protection when the chances of
escaping that peril have become hope
less. Fully conscious of the extreme
sensitiveness of the situa ion, they are
careful to avoid precautions of a kind
that might create alarm or cripple busi-
ness; but they are avoiding new under
tdhillSS did Slcddlly liiiiAlHE
where the borrowers are net OF unques-
tionable standing. In brief while they
are carefully refraining from action pro-
vocative of distrust, they a;e carefully
pursuing the course that would place
them in the safest position for with
standing the threatened dagger should
it be realized. 1t Is this precautionary
contraction of operations which explains
the current decrease in the clearing
house exchanges of Is per cert, as COM
pared with year ago, and of } per cent
as compared with the same date of 1892,
the latest previous normal year. Whilst
this policy of forbearance is doing much
to save diStrust from running fto much
more serious forms, yet it is impossible
to say what conditions of denoraliza-
tion might ensue If it should become i'm
possible to any longer hope for an es-
cape from the dangers connected with
free coinage or from any approach to it.
The country owes much to this tbsten-
ton from the policy of indiscrminate
self protection at whatever risk to
others.
1t is no exaggeration to say that the
financial interests are now stalking eve
rything upon the chances of one If the
party conventions declaring squarly in
favor of the gold standard. Shouldthat
hope be disappointed, there can he no
second opinion as to what would bt the
immediate consequences. at once the
floodgates of distrust would be thrown
open and the worst consequences that
have been feared would be upon us.
There would be no postponing the YER
dict or the effects until after the elac
tons. The people would quickly learn
the meaning of free silver in
the light of widespread ban<-
ruptcy and of commercial ard
financial depression far surprising
our recent experiences; and when the
November voting came, the platform;
of the conventions would be tramplec
under foot by an indignant people in
such ways as they found most expedi-
tious. The political leaders who are
showing so much anxiety to escape the
ire of horde of misled fanatics might
do we'll to consider how they would es-
cape that far worse wrath to come
which would smite them when their
pusillanimous conciiation had worked
out it's effect in public ruin.
Never in the history of the country
have our national party conventions
gathered under graver auspices. The
chief questions to be determined are
What shall be the fate of the now de-
ranged and imperiled business inter-
ests of the nation?
What shall be our future financial
status among the nations?
Shall we rank among the states who
maintain their credit intact by adhe-
sion to stable monetary standard?
Or shall we deliberately abandon that
|. status to rank among the feeble coun-
tries who cannot maintain it and there
fore are graded lowest in international
credit?
Are we, deliberately and from no COM
pulsion of misfortune, to commit bold
act of wholesale confiscation. by making
thousands of millions of outstanding
debts payable at half their face value?
Abe we to tarnish our honor among
the nations by making some fifteen hun