Savannah morning news. [volume] (Savannah) 1868-1887, 1882-03-13
The Financial Situation in the North.

The Financial Situation In the NOrth'
We notice from the New York papers
that there is decided feeling OF restored
confidence in the money market OF that
CITY, and, in consequence, a much more
hopeful view of the business outlook IS
presented. The World of Friday, in its
financial article, alludes to this restora-
ton of confidence and accounts for it in
various ways. In the first place it says
it has been patent to a majority of opera
tors that the recent decline in values
in Wall street was forced far
beyond the point warronted by
the general situation, and that it
has also been clear for several days past
that the depression was the result OF
feeling of alarm following the constant
circulation and reiteration of rumors
without any tangible basis. "These
causes alone" it says, "were sufficient
to lead to a sudden reversal Of specula-
ton, whenever the public appreciated
the slender grounds on which the decline
had been founded, but there are other
and stronger reasons for the turn in the
market which are likely to make the i'm
provement of lasting character. "
OF these perhaps the most important,
so far as its immediate effect is con-
cerned, is the vast displacement of
money resulting from the redemption of
bonds by the General Government. The
Treasury some time since issued two
calls for $2O,OO0.0O0 each, which are
now about maturing, aud one of which
is being anticipated by the Secretary.
Washington advices also indicate that
still another call for $50, OOO,O 900 will be
issued in a few days. The importance
to the stock market of this rapid
liquidation of the national debt
was entirely lost signt of in the
excitement following the recent "bear
movements, but it would be well to re-
member, says the World, "that with q
restoration of confidence on the Stock
Exchange it must have a marked and
favorable effect on values. 1t is well
known that the floating supply on the
market of government bonds has been
reduced to a minimum and that hence
investors, who are now having theil
bonds paid off, must in the future, al
least to large extent, fill the void with
other securities, of which those of the
railways offer the greatest inducements.
The result of this is an ease in the
money market, which is increasing under
the steady outflow of money from the
Treasury, and the movement of currency
in the direction of New York from the
South and West. The reduction in the
rate of discount in the Bank of England
also has had tendency to restore
confidence in the general situation
especially as American securities abroad
occupy a much stronger position thar
those of Europe.
The Herald of Friday, in its financial
article, takes pretty much the same view
as the World, and predicts an era of con
f1dence and rapid appreciation in values
in consequence. Putting these various
opinions together, it may safely be as
sumed that's all fears of possible panic il
the North have subsidized, and that witt
easy money, confidence will soon be fully
restored, and the weak feeling which
has prevailed for some time past vii
disappear. And as renewed confidence
and easy money in New York makes
itself felt benefcially all over the coun
try, it is not improbable that we shal
realize its effects in this market also, anG
that it will perhaps soon be character
lied by greater activity than has beer
shown for some weeks.