Omaha daily bee., 1898-03-08
SETTLES INTO CALMER MOOD
Wall Street Takes soberer View Of the
.. .. Maine Disaster.
JUDGE THE CASE ON EVIDENCE OF FACT
Pacific Attitude OF the Administra-
tiOn Encourages FinRnciers to
Believe that War is Hardly
Probable.

NEW YORK, March Henry Clews,
head OF the banking house of Henry Clews
& Co., writes of the situation in Wall street:
Wall street is at last settling into
calmer mood. A soberer view is taken of
the critical situation introduced by the
Maine disaster. The waiting for the con-
clusions of the naval court of inquiry has
imposed upon the public at large n certain
measure of self-restraint and a disposition
to judge the case upon the evidence of fact,
which is well calculated to allay undue eN-
citement and to bring about IA final just
public Judgment Meanwhile. there Is
better chance for appreciating the rights
ana responsibilities of both parties to the
dangers attending an undiscriminating pas
sion for mere revenge are muca lessened.
This is the more gratifying because, in
not been so much in any probability that
the Spanish government will be found di-
the evaporation caused by the catastrophe
might develop into popular passion for
retaliation which would compel the sovern-
ment to resort to treatment of the case
which would result in actual war The calm
and apparently pacific attitude of the ad-
ministration and the assurance of the sec
retary of the navy have been interpreted as
meaning that no such resort Is likely to be
found necessary; and the financial interests
nave construed this as meaning That the
last extremity of war is not among the
real probabilities of the future.
The net effect of these assurances. how
ever has not been to produce any important
reaction from the late decline in securities.
On the contrary. the market has been ir-
regar and Rrepondera1y weak The 2g
saken the market, the commission houses
have not encouraged a buying policy, and
control has thus fallen largely into the
hands of the professional room traders.
Such spurts of strength as have ftfully APP
peared have been mainly due to the cover
ing OF short sales. and the buying for long
account has been quite nominal. At the
same time, owing to the comparative strin-
sency Of money in Europe and the prospect
try, Europe has virtually ceased buying
our securities and London has been a
seller , on ,t this nns market to the extent of
Apart from the foregoing influences,
financial conditions have shown an i'm
provement The efiiux of currency to the
interior banks, connected with the war
scare has largely diminished. The fall in
Foreign exchange. consequent upon the rise
out engagements for the shipment of over
S5Ooo,OOO of gold from Europe to this city;
and the result of these movements is an
easier feeling in the money market. For
egn exchange has slightly stiffened, but
still admits of small profit on imports of
gold. The condition of our foreign trade
large gold remittances to this country; but
1t Is uncertain how far such shipments may
be actually made. The arrival here of at
produce drop in the local rate for loans
and probably sharp strngency in Europe.
which might easily induce a revival of local
investments in foreign exchange and so
effect prolongation of the large outstand-
ing balances due from Europe to the
United States.
The annual statement of the Pennsylvania
railroad is accepted on the street as a con-
elusive demonstration of the reality and
extent of the revival Of industrial activity.
The net earnings of the united system show
a surplus, after payment of fixed charges
and dividends, amounting to S52l7,OC com
pared with $l,l4l coo for the previous year;
which Is remarkable evidence of recovery
| in our most Fundamental industries. The
railroads generally continue the high rate
of increase in gross earnings that has been
reported for the last eight months. The
annual statements of the companies may
| be expected to henceforth present some
surprises gratifying to investors.
The political atmosphere of Europe seems
70 nave become once more clear of war
has for the present subsidized, leaving behind
| however, some ominous possibilities. Diplo-
matte assurances from London, and Paris in
| innate that the many causes of difference
between France and England undergo
| Ing healing treatment, with the prospect Of
pacific results and more amicable future re-
| ations between the two countries The
points of acute difference between Great
Britain and the far east alliance have been
| arranged on a basis which gives promise of
| opment of trade in China All this has ten
| dency to restore confidence at the financial
centers Of Europe, SO long kept in suspense
| by the semi-hostile relations between the
| leading powers.
The one cloud that hangs over our own
| horizon is the Cuban question: and until
| that is dspelled we can scarcely expect any
real buoyancy or activity in the stock mar
questions raised by the Maine disaster may
| be pacifically disposed Of; but. granting all
| that there still remains the larger and much
| more serious question as to what our gov
| ernment may deem itself called to do to-
ward bringing the Cuban struggle to a
| close. We therefore may not congratulate
ourselves that the trouble is over when the
| Maine question is disposed of. AS to the
immediate phase of affairs with Spain, the
/ Tf is,f,,, traI. erix 9
| the four following decisions: /. That 1t was
| an accident through an explosion from
within ?, That 1t was from without, caused
| by the explosion of mine or a torpedo,
which involves the government of Spain. 8.
That it was an outside explosion as an act
of fanatic. 4. That it was an explosion the
cause of which, whether from the inside or
outside, they have been unable to ascer-
tain. If an ACCIDENT, the loss, falls upon
| Spain. it is a casus belli If the act of a
fanatic It is simply matter of damages
event of a disagreement between the two
| nations as to the measure thereof, the case
will have to be decided by arbitration. In
the case of the cause being unascertainabe
| Spain could not be held liable.
Our government has issued no ultimatum
to Spain that the insurrection must be put
| down by March l; IL may have inti-
| mated that 1t must be subdued within a
| reasonable time. But since that a CONNER
Spain. in connection with Cuba, has beer
| formulated on terms advantageous to this
country. The document is now In ths
| hands of the new minister on his way here
and 1t Is likely to receive the acquiescencc
| of both nations. This treaty cannot fail t
| strengthen the relations between the tive
| countries. Secretary Longs utterance'
should be accepted as eliminating the Span
ish government from criminal connection
with the Maine disaster, as he, being sec
retary of the navy and a pretty clear
headed man. evidently knows whereof III
speaks. The Maine catastrophe. therefore
should not any longer be a particularly dis
| turbing element In the situation.
Now the question comes up, what Is to b,
done on the part of our government in th'
matter of Cuba as the crisis appears to b
near at hand? 1t Is generally admitted tina
we do not want to annex the island and b.
compelled to make the Cuban people Amerl
can citizens 1t Is the least desirable thin.
to do. The Cubans would derive no gooy
from our government recognizing the bel
ligerency OF the insurgents. but 1t would b
an injury to ourselves. as 1t would preven
| American citizens from the collection o
| claims against the Spanish government fo