The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-04-13
Henry Clcws's Weekly Review Of
the Financial Interests.
A POLICY OF POSTPONEMENT



turning from Its temporary transfer to
the country for April settlements, but
the expected benefit from that source
has not vet appeared. Several minor
occurrences appear to have contributed
to the postponement OF operations. The
Wild fluctuations in Tobacco stock have
produced an unsettled feeling. The re-
ports OF the commercial agencies, for
the first quarter of 1896, make an rnex-
pectedly unfavorable exhibit, with the
eject Of encouraging the pessimistic
feeling entertained in come quarters.
The London market has been dull, and
its operations have, on-the whole. been
unfavorable to New York. The still un-
settled condition OF European politics
also continues to hold In check foreign
operations in our securities. The re-
newnl OF exports OF gold has contribute
ed its quota towards discouraging buy
ing transactions, Those shipments, 1t
is true, are not a surprise, for they are
natural to the season; but, under the
existing currency arrangements. they
have an effect which was not felt In
normal times; for they mean the lock-
Ing-up OF legal tenders In the treasury,
which have already accumulated to
SIP 900. 900, with q certainty that the
sum will be materially Increased before
the spring exports OF specie cease.
The relations between Washington
and Madrid have q tendency to produce
tinldity In financial operations. The
Cuba resolutions passed this week by
such large majorities In both houses OF
Congress, 1t is true, have no other force
than. as declaration OF sentiment.
They cannot compel action by the nd
ministration; and they were doubtless
intended mainly for effect in politics:
but It Is impossible to say whether the
President may regard It as duty to
his party to take action from a like
party motive. The Venezuela episode
is evidence that the President Is capa-
BILE OF bold action when he thinks his
party Is menaced. In any event, when
nine-tenths Of legislature declare
themselves in such terms as were ut
tered in the Cuba resolutions OF last
Monday, the country against which
such q protest iB made cannot but re-
gard 1t as contributing to animosittes
between the two nations concerned.
Contingencies like these are, for the
time being. calculated to unsettle conf
dence in the financial markets And,
again, although strong hopes are en-
tertained that the Venezuela trouble
will be amIcahly settled. yet the shadow
Of disturbing possibilities still hangs
over that sensitive question.
This is the group OF unsettllng con-
tinEencies that at the moment supplies
reasons for hesitation and postpone
ment in Wall street operations. None
Of the factors IL in really threatening
shane. The probabilities are that each
one will disappear without trace OF
bad consequences. Nevertheless, the
speculative Imagination, when in a
sober mood, Is very conservative and
demands large odds against a series OF
contingencies suggestive OF caution.
It would be difficult to say just how
much weight Wall street really at
taches to this momentary set OF condi-
lions, Certain It Is that, while they
suffice to prevent buying for the mo-
ment, yet they do not cause selling
among the larger holders Of stocks, nor
even senslbly disturb their confidence;
nor do even the professional bears"
seem to view the situation as warrant
ing any free selling OF staple securities,
but conflne their selling mainly to SEN
sational stocks Among men Of finan-
cial status, the feeling is very general
that the substantial conditions AFFECT
ing railroad investments are sound and
healthy and that, measured from that
point OF view, stocks are cheap at pres
ent prices. It so happens, however,
that in secondary and outside factors
there are so many things out Of Joint
as to call for an unusual margin of al
lowance for possible accidents and un-
foreSeen outcomes. That is now the
point OF weakness in Wall street; and,
until there Is clearing up OF these
numerous small causes OF distrust, a
real and large recovery in the financial
markets must be patiently waited for.
senator TeIleF'G Position Attacked.
It is gratifying to find that Senator
Teller can so far detach himself from
his exclusive absorption in the free
coinage question us to remember that
we have such institutions as national
banks. The senator has made the dis
covery that the country banks are wont
to keep considerable deposits with their
correspondent banks at New York;
with the result, as he thinks, OF deprlv-
ing their customers Of needed accom-
mediation and making their means
available for speculation In Wall street.
He Informs the senate TINT last sep
TENDER $2000O0,000 Of this outside
money was tied up in New York and
that rs per cent OF that amount was
''used in stock speculation" Had he
possessed the statistical equipment
which BELTS a senator he would have
been aware that the comptroller OF the
currency reports the cash reserves IN
the New York national banks, on the
2Sth OF last September, at $l25,5OO,O0O;
and he would have been further aware
that Sl1O, I00, 900 OF that sum was re-
uuired for the lawful reserves OF our
city banks: LEAVING but $l5, 100000 which
could concelvably be accredited to the
deposits OF country banks about which
he shows so much concern. instead,
therefore, Of $16O,000000 of country
money being used here for speculation,
there could not possibly have been more
Than one-tenth OF that amount, even
surprising our banks to have carried,
on their own account, no surplus OF re-
ssrye over the legal requirements. The
senator may thus see, after melting
out the dross OF exAgReration from his
Statsnent. what Is the remaining
modIcum Of fine silver in his story.
II the senator knew as much about
Nnance as his exhaustive dlsquisitions
about silver would lead us to expect, he
would long since have been aware that
II has always been the usage, as be-
tween the metropolitan banks ana the
country banks. for the latter to deposit
with the former at certain season OF
tbs wear and TO borrow from them at
another season, During certain
months, the country banks cannot ind
nae for ali their resources and therefore
are Tlnd to deposit the idle surplus
with their correspondents at New York,
Chicago or st, Louis at q low rate OF IN
tpreai. rather than keep them unpro-
tImctIve and Mt n loss OF interest; and,
during other months, they not only
withdraw those deposits, but also get