The herald., 1896-05-22
CLEWS' WEEKLY LETTER
NEW YORK. May Is, 1895.


There has been but very limited
change in the stock market since our
last review. The intrinsic conditions of
business are sound. Credit is in eX-
cellent shape, and there is less unwhole-
some expansion than for many years
Money, too, is cheap, and good borrow
ers have no difficulty whatever in OBJ
tanning all the accommodation they re-
uuire. Labor disturbances are at min
imum and the 1st of May, the usual per-
iod for demonstrations by professional
labor agitatorS. passed OF more quietly
than usual Overproduction can be OBJ
| served in few cases, especially where
modern Improvements have greatly
stimulated output; but this Is not gener-
al, and can often be traced to deferred
enterprises which are held in check by
the prevailing distrust This same cause
induces retailers and jobbers to carry
small stocks; not so much because they
fear a shrinkage in demand as because
recent events have weakened all con-
fidence in the future of values, and they
wisely refuse to be caught with large
supplies on a falling market. The re-
suits are that manufactured goods are
frequently accommodating at first hands,
necessitating combinations of various
sorts to sustain values and regulate pro-
duction. AS buyers find the various
markets weak they naturally stand off,
prepared to struggle for further con-
ceSSionS.
OF course there must be an end to
this state of affairs. Reaction must
come. Prices cannot always continue
on the down grade: and there is every
reason to believe that just such reac-
ton would appear row were confidence
permitted to assert itself There are
thousands of new enterprises. extern
sons. improvements and repairs which
would be undertaken without delay if
circumstances permitted. Imagine for
instance the effect upon business if con-
gress would simply pass sound money
law and then adjourn for period of five
or six years. The effect would be cleo
trio. AS it is. the whole country is in
an irritable mood. ready to quarrel on
the least occasion. What the nation
needs more than anything else is rest.
Prosperity and peace go hand in hand.
But legislation Is so continually shifting
and meddling with business affairs that
merchant and manufacturer alike are
incapable of forming an intelligent est-
mate upon what conditions they will
be working six months hence. Were it
not for low politicians and sensational
journalists who torment the war spirit
and encourage friction and internation-
al ieasousy for private advantage a very
different state of affairs would prevail
today.
Without them the Venezuelan and Gu
ban questions would cause no such I'M
easiness here as exists, and they would
stand as good If not better chance of
being settled with honor and advantage
to the United States than they do now.
1t cannot be denied that these are the
| influences which are holding back the
general revival which set in year ago
! The sound money question, which is the
! question of great importance, is in
promising shape. The tide is running
strongly in the right direction, and our
] 40 1raI d., 80 11,,
! knowledge the fact unless they dare
risk defeat. 1t is my opinion that the
Republican platform will contain an I'M
qualihed gold plank, and that Mr.. Nc
/ kinley, irrespective of his past record,
| Will, II elected, carry out the will of the
| majority. For this reason should have
| 1ull confidence in the future were 1t not
Tor the danger of foreign compiled lions.
In reality this danger is remote: but
| there are good many apprehensive
individuals about. who may act as they
feel; 80 that values are especially SEN
sitive to political exigencies When
| congress ad1ourns these dangers will be
| still more remote.
The market has displayed remarka-
| BILE resisting qualities considering stag
nation and unfavorable conditions; and
is likely to respond quickly to any fav-
orable developments. About $4,000, 600
| Sold mas been exported and more is like
ly to follow; but such shipments are nat
| ural at this season and excite little con-
| Germ with the reserve standing as high
as 1T does. An object lesson in finance
was the placing of $4,000 900 New York
| city bonds in London on a 3 per cent
| basis. These were gold bonds in the
strongest terms possible; and they We're
eagerly taken when ordinary American
| securities We're neglected. Our silver
friends can form their own conclusions.
Another transaction of the sort was the
,ln O % All,
| Cincinnati. Chicago & st. Louis per
cent gold bonds at 102 Altogether
about 10000, 900 American bonds have
been placed in Europe within a week.
These operations, besides indicating a