The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-03-08
LIKE THE MESSAGE
WALL STREET WELL PLEASED
WITH THE POLICY OUTLINED
BY M'KINLEY.
TENDS TO ALLAY DISTRUST,
AS 1T Is MORE CONSERVATIVE
THAN HAD BEEN EX-
PECTED.
THE GRAECO-TURKIsH IMBROGLIO
Has DisquietinG Effect on Stocks
Henry CIews' Weekly
Review.
TENDS TO ALLAY DISTRUST,
THE GRAECo-TURKIsH 1NBRoGL1o

view VI the cOnQltlOn OF finances Henry
| Clews says:
Wall street has waited with great interest
for the presidents inaugural message and
mas reserved operations in anticipation of it,
us contents were greeted with general salts
! faction not to say enthusiasm. The docu-
ment was regarded, in all respects, as a
moderate, conservative and statesmanly ut
terance, well calculated to bespeak public
confidence. Its statements relating to foreign
Poncy were especially assuring. The presi-
dents reference to the arbitration treaty i'm
plies that it receives his cordial sympathy
from which it is inferable that 1t will have
equally the support of the new secretary of
state. While no specific reference is made to
cuba, yet the president so strongly indorses
our historic policy of International peace as
10 AFFORD nope to those who have feared the
possibility of hasty and threatening measures
toward Spain. On the money question the
message in general terms, and yet unmis-
takably supports the sound money sentiment
OF the country. AS might be expected from
the platform of his party the president ia
| yors a thorough canvass of the sentiment of
the European governments relating to BIZ
metallism; and should a conference for that
purpose fail to be held, it will be no fault of
the new administration. With reference to
! the paper money branch of currency reform
the message is not explicit but hardly be
construed otherwise than as favoring a course
of treatment in harmony with the conserva-
tive views of the commercial and financial
communities. On the tariff question Mr. Nc
kinney favors the procurement of all the ad-
dluonal revenue needed from duties i'm
a message a
valuable contribution towards strengthening
the revival of confidence that has everywhere
set in. 1t tends to allay distrust at the few
remaining phases where it fingers, and to
afford assurance that, at those points of the
public situation where remedial treatment is
most needed such action will not be neg
| lected, but undertaken with well-considered
steps and in a conservative spirit One of the
most assuring features of the presidents
utterance is the entire absence of anything
that could be considered doing something
ilTynr , Cfh ruriSn how nIrerh int
ti0nal action. Pre-eminently, it Is business
like message. 1t is conceived in a business
spirit. and it aims at remedy at the points
where business opinion is most anxious to
readjustment undertaken; while it contains
no utterance calculated to disturb conf
dence. 1t will excite no sensations and it
raises no new issues; but a calm and Sc
rious realization of the important practical
work that urgently needs to be done, it will
constitute strong contribution towards the
recovery Of confidence both at home and
abroad.
Wall street still pursues the even tenor of
its way with eQuanimity; discounting the flu
ture in a conservative spirit confiding in the
comparative safety of the situation as it now
stands, and maintaining a generally hopeful
attitude. During the week however, the
stock market has been put to a rather sharp
test by the course Of political affairs in Eu-
rope. Some disquieting factors have appeared
in the Graeco-Turkish imbroglio. While the
powers appear to have reached a unanimous
understanding yet there are doubts as to the
entire cOrdiality of their agreement, and from
causes beyond their control the situation is
so constantly changing that basis of CO.
operation which may answer for today may
be useless for the conditions Of tomorrow.
Moreover it becomes more and more doubt
full whether the Greeks can be sufficiently
restrained to prevent them from resOrting TO
excuses that might have the dangerous effect
of breaking up the concert between the pow
ers-the most alarming contingency that
could possibly happen. Added to the in
creasing dangers arising from the Eastern
situation comes the new aspect of England,s
relation with the Transvaal and the possibil
ity that it may lead to complications between
England and Germany-possby throwing
disturbing element into the relations be-
tween the powers in respect to the Graeco-
Turk troubles. London appears to be taking
these particular possibilities seriously, with
! the consequence of large selling of Kafirs,
/ weakness in cOnsols and an advance in the
market rate OF interest. THESE are matters
! of some Importance to Wall street; but, so
! far they have been unattended with any no.
! ticeable return of our securities; nor does 1t
| appear reasonable to expect any such effect,
| except under much more serious conditions
| than now exist and which might be attended
with a necessity of procuring gold from this
! side the Atlantic; for the more political trou-
! bies endangered the value of European gov
| eminent securities the more would foreign in
| vestors seek to invest in the issues Of
great country exempt from the risks of for
eign politics.
During the past week, an important ne
gotiation has been consummated here which
has the appearance of having been Influenced
by motive CT that kind A syndicate, con-
sisting chiefly Of foreign bankers here and
in Europe, on Tuesday agreed with the Lake
Shore & Michigan Southern Railroad company
to take $50 900 of 100-year 312 per cent
bonds of that company at 1929, the proceeds
of which are to be devoted to the liquidation
of the compary's Z per cent bonds, matur-
ing between 1888 and 1903. The significance
of this transaction, in the connection above
indicated, is that a considerable portion Of
this issue is expected to find a permanent
resting place among European investors. At
the same time such a large negotiation at
so low q rate as 7-16 per cent net is cal
culated to affect favorably the credit of our
railroad bonds in other countries.
An event which is attracting some interest
in Wall street is the adoption of the god
standard by Japan, upon the basis of 81 l-3
weights of silver to | weight Of gold, the
silver being valued at about the present
price Of silver bullion. AS Japan has been
losing her gold by export for many years
past her present stock is comparatively
small. She may therefore be expected to re-
qure probably not less than $50, 900 to
$50, 900 900 of the yellow metal to establish
the new coinage AS the change is to be
effected gradually, its importation will prob
ably be also done gradually; indeed as the
country's foreign trade and its foreign orders
fer ships are now leaving almost no
excess of exports over imports to be drawn
against and as Japan cannot borrow abroad,
it is not clear how she can possibly ac-
cumulate the needed gold otherwise than
gradually. However, it is not yet reported
! whether she intends to keep some silver for
subsidiary currency or to displace it entirely
! by gold and paper money; if the latter she
may procure some considerable quantity Of
/ gold through selling silver abroad. Also,
she has still an important sum deposit
in the Bank Of England, probably $40, 900 030
to $45 600. 600; but whether that is to be
served for the procurement of vessels
and munitions of war or may be called home
! remains to be ascertained. 1t is safe how
ever to conclude that, in way or
other, a considerable of gold will have
to be gradually procured from Europe or
from this country, probably from both
/ sources Only this week, it is reported from
London that Japan contemplates sending
silver to the United States, which, of course,
! would mean in exchange for our gold. The
metallic reserve''-almost entirely silver
held against the paper circulation ranges
from so to so millions of yen Tor 40 to so per
cent Of the outstanding notes.; and it would
seem that all of this being inactive money,
4 could be spared for the procurement of gold.
This operation is to be regarded as tending
to exert a steady pressure upon the Euro
Alongside of this Eastern demand for gold
to Russia in connection with the readjustment
Of her currency system and with her loans
for the construction of the Siberian and
Chinese railroads; that demand, however
is likely to be felt first of all in Paris. These
facts seem TO foreshadow a considerable
Eastward drain upon the European gold
stocks with an obvious future effect upon
the rate for money. Their immediate bear
ing, however, is less obvious