The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1896-07-03
CLEWS' WEEKLY LETTER
NEW YORK. June q. 1896.


suring effect of the st. Louis declara-
branches OF the business community.
This anomaly may be accounted for from
various causes. To begin with, the
speculative spirit has been so completely
crushed and the street" had become
so utterly distrustful that the market
had lost all its resiliency and was too
feeble to respond to even the bull" over
lures from London. In the next place,
the room bear" operators We're con-
siderably oversold and stoutly resisted
any upward tendency. Again. there was
disposition to wait for the echo of pub
lie opinion upon the st. Louis gold plank;
ana some are disposed to wait for the
outcome Of the Chicago convention.
Moreover, the fact of the change COM
ing so near the time of summer absences
was unfavorable to undertaking new
operations; and the more so as there is
every prospect of the election campaign
being one of unusual excitement. Also,
1t is feared that an overwhelming dis
play of silver strength at the Chicago
convention may possibly interfere with
the wholesome impression produced by
the st. Louis declarations. The persist
ent rumors of impending complications
between Spain and our government.
though probably having no foundation
in fact, have had restraining effect on
transactions; and the unfortunate Incl
dent in Venezuela has had a similar
tendency. 1t is mainly this combinaticA
of set of small influences which has
held the market stagnant under condi
lions otherwise well calculated to foster
an important improvement in prices.
There is apparently little prospect that
the great assurance of safety against
silver conveyed by the ST. Louis plat
form will be made the occasion of any
immediate speculative boom. The event
has lost its first freshness. and it effects
must be looked for under cover of later
set of circumstances. Wall street has
lost the opportunity for an important
recovery from its protracted depression
and for showing its appreciation of on
invaluable contribution towards the re-
covery of public confidence. 1t has fall
ed to celebrate, in its own way, great
financial victory and a great national
event, and with no great credit to its
sagacity. But, not the less. the achieve
ment will have its effect upon the course
of financial affairs, though the recog-
milton may come so late as to lose some
of its effect 1t has been supposed that
Wall streets verdicts are prompt and
that they give the cue to the opinions of
other interests. In this case ii has failed
to justify it's reputation for leadership.
But, no less on that account, have the
mercantile and industrial interests
formed very decided estimate upon the
Importance of the utter defeat of the
silver faction at st. Louis They per-
haps recognize more readily the value of
this victory because it is largely theirs;
not political achievement. but one won
by the manly efforts of men moved by
an intelligent perception of the vital Is
sues at stake and the serious interests
endangered. Among the mercantile
classes there is common feeling, al
most irrespective of party. that the st.
Louis platform assures the consumma-
ton of sound money policy and the
final avoidance of the silver peril. This
is more than hope; it is fixed con-
viction, and the decentralization pervad-
ing the ranks of the opposition party
seems to leave no possibility OF any
other outcome of the elections.
The feeling in trade circles
marked improvement within the past
week. In the volume of commercial
transactions there has been perhaps lit
tie change; for the reason that this is
mid-season period of the year and the
volume of business is at its lowest point
There is however, a marked recovery or
confidence, which may be expected to
show itself in the preparations for the
fall trade and already finds expression
in better tone In prices.
This improvement does not overlook
the fact that the defeat of the silver fac
ton does not cure every evil IN the sltua-
ton; nor Is there any inclination to ex-
aggerate its value. There Is no DISPOSE
ton to evade the fact that refractory
senate may be expected to do its utmost
to defeat every form of wholesome legis-
lation. 1t Is expected from that body
that the defeat of silver will cause it to
oppose all efforts to renovate our cur
rency system, and probably to inter-
pose every obstacle to reinforcing the
revenue through a revision of the tariff.
Nor is 1t forgotten that nothing has yet
been accomplished towards relieving the
treasury of its exposure to the draining
of it's reserve. The prospects of legisla-
ton are thus surrounded with no little
uncertainty; and absolutely smooth and
sailing is out of the ques-
ton. But the difficulties that remain are
virtually subsidiary matters, as COM
pared with the removal of the one dan
ger that has threatened to overwhelm
every interest in the ruin of debased
currency. The escape from the danger
which has overshadowed all others COM
bined is something that warrants very
large recovery of confidence and great
relief of the paralysis that has so COM
pletely Frustrated business; and when
of seasonable business 1t seems entirely
reasonable to expect a return to much
healthier business conditions than we
have witnessed for the last three years.
One Of the first subjects to be under
taken, upon the reopening of congress,
should be the remedy of the conditions
under which the treasury is now suffer-
ing. 1t is time that the policy of rum
ming the finances upon temporary make
shifts was ended. The country has be-
come wearied of borrowing 100 millions
a year to redeem the greenbacks over
and over again, and no delay should be
lost in bringing about a fiscal rearrange-
ment that will insure for the treasury
a gold income sufficient to take care of
all needful redemptions of it's notes. That
was the protection of the treasury pre-
vious to 1893, and there is no sufficient
reason why it should not now become
its shield again.
That measure being accomplished,
nothing will remain needful to effecting
a complete restoration of our credit
abroad; and with that will cease the
continuous drain upon our stock of gold,
with probably return of much of the
large amount that we have exported
since the panic of 1898. This and the
prevention of further coinage of silver
being accomplished, the reconstruction
of our paper money system may be safe
ly permitted to stand over until condi-
tons are more favorable to thorough,
wise and final treatment of that branch
of the money question. The great thing
that now summons the country to a re-
vval of confidence and activity is the