Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1897-02-18
AS HENRY cLEws SEES 1T.
His View of the Business and E'iusa-
ciaT Situation


ciaI Situation.
Henry Clews continu@s to discuss tsse
business and financial situation, and
good deal OF what he says shows that
the old man can get away from Wall
street influences occasionally. Among
other things Clews says in his special
to the press that zone of the greatest
aggrayations of the unfortunate finan-
cial troubles OF the last four years bas
arisen from the profound distrust they
have excited among the bankers and
capitanstic classes on fhe other side of
The Atlantic. After senaing home their
securities and Withdrawing less perma-
nent forms OF loans to the combined ex-
tent of probably hundreds of millions of
dollars, they are now surprised. | may
almost say astounded. to find us in no
real sense weakened, out competent TO
/ lend them large amounts of capital, to
| defer payment of fifty millions of gold
which it is within our power to draw
hither. and thus afford great relief
| to very stringent condition of the Eu-
ropean money Enthusiastically eS-
! hibiting a potency in international
| finance which we have never heretofore
! possessed. These are facts which must
| tell for something in the future status
of American credit"
AS concerning the question of taking
| the government out of the banking bust
ness by retiring the greenbaclls by sub
/ shutting bonds for them, Mr.. Clews
| says: THE agitation against green
/ backs is ill-advised in connection with
| the feature proposed-to issue bonds in
their stead. That would be to convert
Notwithstanding obligation of the
| government into one that would tax the
people about $40 500, 900 annually for an
| indefinite period. That, to say the least,
! is entirely unnecessary; for, when the
| government comes to retire the notes,
a large portion of its gold reserve could
be devoted to the liquidations; and, be-
yond that the treasury could lawfully
use its contributions to the debt sink
! ing fund TO the extent of about $4,000,
/ OO0 a year, when the revenue was re-
stored to its former basis of surplus in
come. Instead Of liquidating the green
1 backs through issuing bonds in the way
4 shat has been proposed, the first step
| taken should be for the government to
/ do what is possible to improve the notes
/ in public estimation. This could be
| done by increasing the government rev.
cnue so as to insure a surplus instead of
a deficit. as it is this unfortunate con-
dition which has inspired the feeling
with many that Sreenbaclls must be
got rid of at any cost If congress
would provide ample revenue for the
government and pass an act debarring
| the reissue of greenbacks, after they
| have once been presented at the treas
ury and gold demanded therefor, except
in exchange for gold, greenhacks would
then be regarded all over the world as
| good as gold. The notes that the gov
eminent should first take up are those
| issued under the Sherman law. repIac-
ing them by silver coin as fast as the
country can safely absorb silver. This
should be limited to about $25,000.O0G
per annum; and the Bland notes should
| later on be treated in a similar way. but
on larger scale. If the greenbacks are
TO be retired by their conversion into
bonds, as proposed, what will the ma
tional banks have to hold as their re-
| serves, and for the redemption of their
notes? It is better not to be too precip-
| itate in dealing with the greenbacks."
Referring to the business situation.
Mr.. Clews says: The recovery in she
| investment market appears to be at
tributable almost entirely to the con-
| seriousness that at last we have entered
upon a stage of great substantial im-
| provement in financial conditions. The
condition of the railroads is contribut-
! ing little towards this recovery, for
their earnings are at present unsatis-
| factory, although the storms may be
! held responsible for that Neither has
trade yet developed any surprising re-
covery: although the symptoms are not
wanting that in the manufactures and
| the distributing trades we are in the
beginning of a healthy revivaI."-LoI
Angeles Herald.