The herald., 1896-06-25
CLEWS' WEEKLY LETTER
NEW YORK, June 90. 1890.

or confidence that may be expected from
thu victory of the cause of sound money
at the st. Louis convention. Nc sooner
was an agreement reached 20 incorpor.
ate In the Republican platform dec,a-
ration in favor Of the maintenance of the
gold standard and against free coinage
than London responded by large orders
for our stocks This gave the key-ncts
to the local market and produced rise
in prices of 21s to per cent.
At that point London showed a dis
position to take profits, thereby check
Ing the advance, but leaving the market
firm atthe higher figures and apparently
prepared to encourage still further ad-
vance. The realizing by London was
also Influenced by references, in the
first draft of the st. Louis platform, to
Cuba and our attitude IN the Venezuela
dispute; but under the final formof those
planks London resumed buying.
The London Economist recently re-
marked: 1T Is easy to understand why
the results of the forthcoming national
conventions are exciting so much enx-
iety. II they point to the election Of
president fully committed to the main
tenance of gold payments ard strongly
supported a. the country, the probable
ity is that there will be a diatinct i'm
provement in the financial situation.
The distrust with which European in
vestor3 regard American securities will
be largely dispelled, and thus one of the
main causes of the continuous efflux
of the treasury will be removed" Tbr
outcome of the convention here supposed
has been realized-we may say fully
realized; and the London buying which
has already appeared is a confirmation
of the Economists conditional Prediction
of distinct improvement In thesituation
and large mitigation of European dis
trust toward our securities. 1t is not
improbable that Europe may In some
measure postpone action until the Chi
cago convention has been held; but it
will not be long in learning what is al
most universally conceded here, that the
party represented at st. Louis will cor
troll the policy of the country for the
next four years; and when that is corl-
pretended, a renewal of foreign orders
for our investments Is likely
to be forthcoming. Quite posi-
bly,. our expectations as to the extent
of this new buying may fall below rather
than exceed the reality. Judging from
the uniform tenor of reports, there has
scarcely ever been q period when the in
vesting nations of Europe were prepar-
ed to take such large amount of ex-
ternal securities as they are at present.
The cry at London has long been what
large sum OF American stocks and
bonds would be taken by that market. If
adequate assurance were given that we
are safe against drifting upon the sill
yer basis. That assurance now afford
ed in the most unmistakable terms; and
no one doubts that, next November, 1t
will be confirmed by the popular vote.
We surely have reason to put some con-
siderable confidence in the fulfllment of
these transatlantic promises
wall street is not yet ready to give full
some extent, 1t is taken by surprise at this
political result. The imposing display of
force. that has been made by the slverites
the outcome of the conventions. 1t was
very. generally feared that both parties
would adopt a~'straddlirg" policy on the
operators who give directions to the course
OF the market were unprepared for the free
and sustained buying operations which the
of a great sensational rise that would dis
count the whole effect of tie new situation
within week. we seem more likly to have
a steady upward movement. extending
over the summer months. This is the safer
course for matters to take as operations
tending effects Of the restoration Of bust
ness In all departments. and will be iusti-
fled by constantly accomplishing encour-
tRusiasm over the result is 81 somewhat i re-
strained by. differences of opinion as to the
minor planks in the platform, and also by
the presidency. When the convention has
completed its work. these secondary diff
ferences Of sentiment will disappear and
will be the great salvation from the silver
peril which has at last been placed beyond
peradventure.
We have now entered upon a new situa-
ton, A great and seriously possible dan
ger has been escaped. The determination
of the monetary policy Of the country has
~ for fn1rr yaar tn to
hands of party unalterably committed to
the maintenance of the money standard
GSmmon to the great , &c nations
sion which can only tend to refute the
their leaders It will be employed In re-
II iudcionsly dom will supply the West
and the South with money which viii!
than the debased coin afr which they
have bn INSANITY hankering. Discussion and
legislation will go hand in hand towards
ure required; and it is to be hoped that
our banking arrangements will be so ex-
tended as to afford to those sections credit
but have not SO far received. Another ten
dency making for the extinction of the sill
Vel. agitation will be the moral effect of the
consequence of the subjugation of the sill
Yer agitation. This win constitute an ar
gument from fact AMI experience which
u
the violence of the silver excitement and
of its twin fanatlcism. populism. And.
further, the revival of business and of ma
tional prosperity. growing out OF the re-
oovery of confidence, will prove an effec-
tive means of temperinE the sectional dis
contents which have helped to intensity
are geographical hostilties which have
been associated with silverism.
This revolution in the dangerous condi
jected. we repeat. Introduces a radically
changed situation. The natural forces
affecting our national progress have been
held in suspense by a erent fear, and hence
the commerce of the country has remained
stationary. That suspense Is now lifted:
and what remains to keen wheels of trade
from again resun1'ng their movement?
can see no sufficient reason why a return
of normal activity should not forthwith
stands ready for activity. The long de-
preston has left no wrecks such as follow
Il panic. Capital r. now relieved of the APP
prehensions that have kept 1t idle. Mer-
chants have run down their stocks to o.
point approaching exhaustion: and the en-
cep'onal )owness OF prices is favorable
to buving operations. Under all the cir
cumstances. therefore. the situation seems
favorable at every point to recovery in
own significance as to the future course of
the investment and speculative markets.
The long period of exceptionally low prices
for securities has now probably reached its
end for long time to come
In Boston resides Miss Elizabeth C.
Adams. granddaughter of the first Presi-
dent Adams. She lived in the White
House during the term of her uncle