The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-03
v1r BUSINESS oUrtooK ron 1sDs.

a...L Exchanges. ~ 70 thup UNIV thhNopt va
ev. o,ceptions, we're higher than they were
az" ,hs yenr opened. but they showed a de-
wv wv. rom points they had reached in the in.
cnmO rbich was discourag'nR 10 spsculators.
E'snora,ions of the United States Treasury
~ IN a large amount OF money and thus
", Tho rates OF interest on call loans, the
.I.,os NJ the Chestnut Street National Bank in
rsn.dclphla, and Of the Herring-H all-Marvin
c"mn,ny here, with a number Of small mcrcan.
M. ,a,Inres In this city and excited
s-n..hcnslons Of more disasters TO come OF tho
~. Kind, and tho collapse OF tho imitation in
n. Gas stocks which began last summer had
~ additional depressing effect The rise In ele-
-.,sd and street railway stocks, due to the
.soh,ble failure OF the underground rapid tran
=, .cheme, and to the announcement that q
,r.stv Of peace had been made between two
~s,t riynl companies. only partially counter
s.,.d IN csc unfavorable influences.
Tho fai lure Of the PHILADELPHIA bank and OF
,hs New York safe company were peculiarly
.,.,mine in that the causes Of tho catastrophe
a. hotb instances, date far back, and should,
,,u,timately, have brought 1t about long ago.
Tho completely Of the Comptroller Of the Cur
,.ncy in concealing. for two years after he first
,.,rned OF IT., the dangerous condition of the
Philadelphia bank is not the least unpleasant
feature OF that affair. He excuses his conduct
an the ground that prompt action bv him would
have precipitated q financial panic, without ben
satinu the banks deposltors. but he seems to
have had no consideration for the people who
have since intrusted their money to tho bank, ro-
living upon his implied assurance that 1t was safe
there. Besides. since he has, for two years, al
,oved this rotten concern to continue In busi-
ness, II may reasonably be inferred that he has
done the same with other institutions in o sim.
a. ,-Lt,l ,rNI A-n1- L.,. -
confess their insolvency to the great loss OF their
creditors. The New York safe company failure
was not so much OF u surprise, its precarious
,tate having been for some time suspected. but
Il was none the less disaRreeable to the losers
by It, As to the less important commercial
catastrophes which have recently boon an
nounced, they, also, are uncomfortable sugges-
tions OF more to come. and proofs that the re-
yivsl Of trade. which Is supposed to have begun
last summer, has not boon as eficacious 40 it
has been represented to DO.
In fact, much ground exists for fearing that
without being actually bankrupt, q large num-
Der Of business houses and of financial institu.
tons have not fully recovered the losses which
they sustained from the panic Of 1893. Trade
has indeed, latterly, been good, but 1t has not
been good enough nor good long enough to COM
pensate for its previous dulness. People have
not resuUl6u tHo uaulto VI AVIS OApOHulIuT0
and OF enthusiastic enterprise which 20 to make
up what In this country is regarded as true
prosperity. They buy judiciously. consume
frugally, and hesitate to embark their capital in
doubtful schemes. The result is a healthy state
Of business affairs. but not an inspiriting one.
Men are making their living comfortably. but
they are not rapidly accommodating fortunes.
Tho United States Treasury has been eXcep-
tionally fortunate during the past year. With
q regular revenue falling short of its expenses
many millions Of dollars. 1t yet Is able to show
for the six months ending Dec. 81. O con-
siderable surplus, and to begin 1893 with an
abundant balance of money on hand. For this
Il is Indebted to the plumbers OF the preceding
Administration. When President Cleveland.
In February. 1896. sold 800. 900. 900 Of bonds to
avert what he supposed was an impending fnan-
cial panic. he little thought that he was provid.
Ing his successor with means to tide over two
years OF insufficient revenue. and when the DEM
cratic Congress refused to settle the Union Pa
ciac Railroad debt, they did not torosee that the
settlement would be made by a Republican Ad.
in a way that would yield 1t $685.
00O. 900 in cash for current expenses. Yet both
these things have been done. and the Republi-
can party has profted by them.
For the coming year, the prospect Is that the
will not fare SO well as 1t has Jared
these last six months. OF the S5s 900, 900 it has
from the sale of the Union Pacific Rail-
rold, it will have to pay out $50, 600 for
bonds maturing last Saturday, and 1t Is not pos
eibll that, without further legislation, its rev.
enues will increase to a point where they will
equal its expenditures. A large slice of the
surplus LETT from the proceeds OF President
Cleveland's bond sale will. therefore. have 70 DO
used to make up a deficit, which even tho Sec
otn 80 ~ tho T,na o,,ry ultimate will hn goo.
900 on tho 30th OF next June. and which
Is more Likely to be $1,000 200. Still. the
will have money enough and to spare.
and there Is no ground for expecting a resort to
Cleveland's expedient of q bond issue
10 replenish it. In the affairs Of private citi-
Gems, however, the same clouds that, as we have
darkened tho close of 1897, hang
over the dawn of 1893.
To dissipate these clouds we have to rely, first
upon the natural tendency Of long-continued
inactivity and OF a consequent accumulation OF
capital to beget an impotence on
the part of the public which finally bursts all
bonds and sets free the current of speculation.
Then, too. we have. at present. an unusual
foreign demand for our food products, for which
We shall be largely paid In gold, and which have
already insured us immunity from any depletion
OF our monetary reserves. No pestilence afilicts
49, UNIV = Nhio v W s"S oAN'a $500
vests are good; and under the stimulus of those
conditions it may be expected that
what is now a moderate trade will expand and
assume proportions which will
satisfy the most exacting grumbler. On the
other hand, both the grower and the manufGc-
turcr OF cotton are suffering from low prices,
and have no hope OF immediate relief.
A great deal Is said In certain quarters about
currency reform as an indispensable prerequi-
to any lasting Improvement in business.
How illusory this idea IL, and how unnecessary
1t Is to make any change In our currency System
a. present, has often been pointed out In this
column. n vertholess, q great many people. both
In Congress and out of 1t, are bent on securing
on the subject, and will spare no
effort to succeed. Two weeks from to-day tho
House on Banking and Currency are
TO take up for consideration Secretary Gage's
bill for refundlng into bonds expressly payable
In gold a large amount of Government bonds
now payable in coin. for making these bonds
tbs basis of an enlarged issue of ma
tional bank currency. and for retiring
800. 900, 900 of the existing Government