Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1898-04-05
Business and Financial Matters.


The condition of the stock market Of
late has been very nervous and unsat p
isfactory. Alternate .rumors of in
evitahe war and assurances of certain
peace haye caused quotations Ia
Bradstreet's leans to the cheerful opin-
ion that the war cloud has mot as Yet
restricted general distribution. which,
founded primarily upon the prosperity
of the agricultural classes, is viewed
with confidence as regards the future. =
In the East some effect of the disturbed
foreign outlook has been apparent, hui
over the country as a whole the skies
are still tranquil, and all but specua
tive business continues prosperous
The first quarter of 1898 shows heavily
increased bank clearings and a reduced
number of business failures in com
parison with ls97-gratifying symp-
toms, both Of them.
III t'IiIltt Ii'IiI W III lIlt Wal I'I pSlf'tiS
the financial outlook is of vital interest
and CleWs Financial Review has some
reassuring things to say. The condi
ton of the foreign exchanges. it de
-clares, abundantly fortifies us for the
possible contingencies of war finance
The importations of gold still continue
and up to date the consignments Il
New York. via Atlantic and Pacific
ports, aggregate about $4,000. 900 Al
though there was. during last week
some sending forward of foreign bills
held here for temporary investment i
is estimated that some $40. 000, 900 more
are still so held: representing so much
resource of early maturing obligations
either to be liquidated in gold, or ex
tended, or settled for by the return Of
securities in the event of an acute War
amply sufficient to protect our financial
position in the event of the Cuban ques-
ton developing into actual war. This
fact alone Shields us against the inter
national financial arrangements which,
usually occur as one of the immcdia t.
effects of the outbreak of foreign hos
tilities. Instead of being exposed to the
remittance of balances due to foreign
countries. we are in the position of a
largely creditor nation and able 10 can
home a heavy amount Of loans ex-
tended IL other countries. 1t is not
easy to over-estimate the value Of this
situation Should the government 0e
driven to the last resort of war. tn"
banks would be strongly protected, and
50 the whole structure of commercial
credit would he safe Whatever other
dangers on losses we might have 20
face, we should bc safe at the point
where our internal system Of finance is
most dependent.
This fact would greatly contribute
towards averting he interruption of
industry which ordinarily sets in with
the occurrence of foreign hostilities.
and therefore should tend to proven;
any apprehension Of really serious bust
ness disturbances. Moreover, war, not
Withstandng its destructiveness. is at
tended with it's own sources Of demand
which are by no means incOnSidera
The effec cts Of that demand Immediately
appear in quickened markets: while the
effects of the destruction do not show
until a much later period. The first
effects of the war of 1861 90 We're al,-
parent in a great imitation of prices and
an abnormal activity of trade; the re
dictionary arrangements We're delayed
uttil the panic of 1873. At the begin
ming of that struggle. We had only
Soo, coo of gold in the country: to-
day we have $3.50 .000,0 War ALWAYS
becomes a serious question of gold re-
s0urC e; and this difference between now
and then is an advantage of the utmost
value; the more so as the threa tened
war would be of far inferior magnitu~lc
to that OF - years ago. Still. although
we might safely count upon these
ameiorations of war when it had fairly
go, under way. its immediate effect