The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-01-17
DISCUSSED
Views Of London Bankers on Our
Present Noney Difficulties.
INVESTORS ARE FRIGHTENED
Issues Of BOads Can Give Only Temporary
Relief While the Greenbaeks Re-
main in Circulation.

New York. Jan ia special cablegram
from London 10 the Herald says: Some
OF the most prominent London bankers
interested in American securities have
furnished their views Of the financial sit
uation 10 the Herald. They discuss the
manner In which the market for these
securities has been affected by the deple-
tion OF the treasury reserve. the Venez-
uelan Incident and the proposed govern
ment loan.
All agree that European holders Of
American bonds are quietly but persist
entity selling. and some express the rather
gloomy opinion that these VIII not be re-
purchased for a very long time. II ever
One Anglo-American house. which never
touches stocks, but deals exclusively in
investment bonds. says the Venezuelan
Incident has permanently altered the At
tltude OF British investors toward the
United States
Despite the prevalent distrust Of cur
rency, this house was a steady purchaser
OF gilt-edged American bonds during the
autumn and early winter. and on January
] expected to re-invest many millions in
these for individuals as well as for insur-
ance companies and other corporations
This movement would have Offset an ad-
verse trade balance against the United
States. and gold would probably now be
flowing to New York instead OF away
from II.
The Venezuelan incident frightened ev-
erybody and knocked these prospective
purchases I'm thehead
On member OF this house went so far as
70 compare the Venezuelan incident with
the Russian war scare ten years ago
British investors then sold Russian secur-
tiles and have never bought them back
Mr. Thomas Barring. OF Barring Brothers,
takes more hopeful vlow. Investors,
he says. are undoubtedly now selling
American securities. being discouraged
by the refusal OF congress TO authorize a
gold loan 10 replenish the treasury re-
serve. This. he thinks. Is at the bottom
OF the prevailing distrust. but the move
ment has been stimulated by the Vcnez-
uelan incident.
Mr. Barring thinks, however. that sooner
or later the people OF the United States
will compel their lawmakers to put their
currency on a sound basis.
There Is a vast amount OF money in
Great Britain seeking re-investment, and
II the finances OF the United States were
adjusted so as to inspire confidence
much OF this capital would be attracted
While greenbacks remain TO act as an
endless chain drawing gold out Of the
treasury. however. foreign investors will
hold aloof. and liquidation will continue.
Mr.. Burns, OF J. S. Morgan & Co, said:
There are two evils that lie at the bot
tom OF all financial trouble in the United
States. One Is the utterly absurd mon
etary system by which an every recur-
ring dlstrust OF the currency is produced,
and the other is the eXtravagance of
American people. They spend more than
they can AFFORD.
'Unduly impressed with the boundless
wealth of the country. they have been
like a young heir squandering his pros
pectlve estate. The lower price of wheat
and cotton have reduced the purchas-
ing power OF the people. but they go on
buying enormous quantities of expensive
foreign goods and getting into debt with
the rest Of the world at the same time.
Instead OF exporting securities as in
old times, they are now obliged to i'm
port them. hence. an enormous adverse
trade balance. Even a reform of finances
will not cure the present evils, unless
the people cease to import more than
they export, The greenbacks must be
retired as a first step in monetary reform.
III hundred million dollar loan Is
successfully placed It will, like its pre-
decessors, be only temporary eNpedtent,
but It will undoubtedly help matters for
a time and permit the campaign Of edu-
cation to go on.
For my part. I believe that the new
bonds will be subscribed by the people,
and that the Morgan syndicate will not
get them. From my standpoint this is
unfortunate. 1t would be better to sell
the bonds to those who have gold to pay
for them, and thus temporarily at least
build up the treasury reserve. If they
are taken by popular subscription the
purchasers will not have gold TO pay for
them and must get II directly or indi-
rectly from the treasury by presenting
greenbacks for redemption.
Here Is curious phase of the prob
lem. The men in congress who voted
against the issue of three per cent gold
bonds are opposed to retiring greenbacks
and vet the direct effect of the four per
cent loan now offered will be to retire
in this way corresponding amount of
green backs.
'One of the errors prevalent in the
United States Is IT, 1t there IS lots OF
fact there Is very little money in the
country; lots of conventional money, II
you please to call paper money, but very
little Of the real money that is current
throughout the civilized wcrld, and that
is gold.
what there Is of this is on the Pacific
coast or owned by banks and trust COM
panies In other parts of the country.
II is not in circulation"