The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-04
BEGIN THE NEW YEAR Alright.
USUAL CROP OF ANNUAL SETTLE
MENT FAILURES WERE Elk
TREMELY LIGHT.
STRONG TREASURY GOLD RESERVE
Has an Encouraging Effect Upon
Public Conhdence-Cuban Tan
gle More Hopeful.

NEW YORK, Jan. 3.-In his Weekly
review of the financial situation, Henry
Clews says:
steady and confident feeling IN Wall street.
The chief events of the week have been the
Western bank failures and the more hopeful
aspect Of the Cuban situation. In well in
formed quarters. the bank troubles are not
regarded as warranting unsettling differences
as to the condition of the Western banks at
large. Certain Minnesota banks have been
known for some time to be under serious
commitments to the lumber trade, and fall
ures among those institutions have been ex-
pected; but the suspensions are believed to
have now run their course. With probably
few exceptions, the Western banks are now
regarded as in reasonably sound condition.
AS the recent failures wee due entirely to
exceptional local causes Wall street sees
nothing In them to warrant uneaSnesJ
IN striking contrast to these occurrences
out West, Is the unusual scarcity Of insolven-
cies at this center. At this period of the
year. crop OF failures, arising out Of annual
settlements, is expected matter of course.
Within the last two weeks, however not
outstanding the severe experience of 1895 in
all branches OF business, not single notable
suspension has happened. This speaks much
for the soundness of business conditions at
the metropolis, and casts forward a hopeful
prospect for 1897. This, with other evidences
ment of operations, has much to do with the
hopeful feeling in Wall street and the grow
Ing expectation Of higher prices for securities
with the opening of the new year.
The Cuban situation, to all appearance
seems to be entering upon a more hopeful
Phase. Although many reports have been cir
cuiated, more or less definite, the precise ma
ture or the relations between the state de-
partment and Spain do not appear to have yet
been explained. Sufficient, however, has been
directly or indirectly admitted by Secretary
Olney to leave no doubt that negotiations
are pending for bringing the Spanish govern
ment and the Cuban leaders into pacific con-
ference ference through the medium Of the United
states; which Is very hopeful sign of an
early settlement OF the troubles between Spain
and her colony. The death Of Maoeo is likely
10 make peace easier Of achievement than 1t
would have been had he still remained in
chief control Of the insurrection. Gen. Gomez
is understood to have favored an effort at
pacincation some months ago, but he was
overcome by the more beligerent spirit of
Maceo now, therefore, that Gomez is in
control, he may be supposed to have a free
hand IN negotiations for settlement. At the
same time both Spain and the Cubans must
be heartily tired Of their sacrifices and tha
chances of being defeated are perhaps equal
on each side; SO that, under the guidance OF
d government 90 IN winch both have reason to re-
gard as friendly and disinterested there would
seem TO be reasonable ground for hoping that
the quarrel may be settled at no distant day
ALREADY, the very grave Venezuelan dispute
has been disposed of; and If the chances of our
emDrollment in the Cuba quarrel should he
obv1ated by peaceful adjustment there
would be no longer any foreign entanglements
try. e'0A-
N this respect the business Of 1897 opens
with much more encouraging auspices than
existed year ago. In other ways also Tie
prospect pbosp mas greatly improved. The silver
SnoSt no longer haunts u.s. The earnestness
WIN which the house of representatives is
taking UP the currency and banking Questions
a an reason for hoping that in those much
ueranged branches of our finaIfce some ameI-
iorations may be effected: ana the more CO
because the business interests will bring a
very strong pressure to bear upon congress
Tor bringing about currency reforms
1t Is also to be kept in mind taht the
now strengthened position of the treasury
gold reserve is calculated to have an encour.
aging erect upon public confidence. The
large 1mportations of gold during the recent
months have enabled the government to raise
the reserve $S7, 100000 above the S00. 900 OO0
mark, and the local banks are holding fully
f fneaf average stocks of gold: The amount Of
Foreign bills of exchange held In this city
VIII probaiy more than suffice to serve the
adverse foreign balance which generaIIv ar
cumulates during the first three or four
HonIns OF the year: so that. there is little
prospect OF the treasury being drawn upon
for gold for expectation. Virtually, there
1ore 1t may be considered that the treasury
gold reserve is likely to be kept above the
legal limit throughout 1897. In the meantime
there is q favorable chance for arrangements
Delng accomplished, either by congress or
onrough an understanding between the gov
eminent and the banks, by which the treasury
VIII IN future be shielded against foreign
Grams upon its reserve of gold. These facts
showing such an unusual measure of exemp-
tlon from dependence upon foreign finance
are OF the utmost consequence to the re-
coyery of business during the year upon
which we have now entered. It has taken us
tnree rull years to realize this fndependence
but, now that 1t has come we NAV indulge
some pride over the achievement wear
ago we were alarmed at our exposure to the
tender mercies of European fnancfers, and
tney were treating us with thinly disguised
olstrust and prophesytng all manner of evil
1ate against us; now, for the first time in
the history OF foreign relations, we are lend
ing these same hnanciers some $35 GEO. 900 OF
our surplus funds, much; to the convenience
ana relief Of the borrowers. And vet this
position is little understood or appreciated by
our men of business, and many stand on this
threshold Of 1897 timidly wondering how WE
are to come out of it.
There is another achievement of the wear
Whch should afford us no little satisfaction
We have been clearing the deck of our corpo
rate lnsolvencies. During the year. six large
and many smaller bankrupt companies (chief
ly railroads. have been reorganized attended
with the issue of $941 ,000, 900 of securities to
replace the old issues, which have long been
in state of suspense. These securities have
been listed on the stock exchange and consti-
tute about 10 per cent of the entire amount
of stocks and bonds now so represented on
the exchange. The effect Of the-e operations has
been to replace nearly 81 900 600 900 of renre-
sentat1ves OF capital at freer use by the in
vesting public and so far to increase the
transactions in Wall street. These issue will
be some time in finding a final adjustment
OF their resting place, and during the process
are likely to be subjects of active speculation
/ The foregoing are some among many fac.
tors which are calculated to foster hopeful
reehng at the opening Of the new year. There
are others of an opposite character; but the
encouraging features preponderate largely
over the discouragng; and apart from un,
foreseen adverse events, 1 do not hesitate tt
forecast that year hence this estimate will
| be confirmed by the outcome