The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-26
BANKER CLEws' VIEWS.
What Ee Has to fay about the
Financial Outlook.


Wall street continues, aud tho prices of
row to encourage large speculative trens-
actions, The absence Of any advance in the
Ba kof England rate of discount last week,
and the conunued imports OF gold, together
VITA further liberal increase Of the surplus
reserve in the bank statement OF Oct. Ia,
were expected 10 have a reviving effect
upon the market during the past week but
only slight Improvement was inaugurated;
but the market still shows, by the daily
meeger traneactions, an insensibllity TO
favorable factors which can hardly DO con,
strued Otherwise than as an ominous synp-
tom.
The shrlnkage Of transactions on the ex-
change to less than one-haf Of their lae
volume plainly mea 3 thai an important
class of large holders have sold out and that
they are e at present disposed to enter the
market again at the current rage Of
values. Hence s Oh condition OF present
holdings usually results in either reaction
Of prices, or IN q prolonged stagnAncy. DUR
Ing which comparatlvely weak holders have
90 keep up forlorn struggle against the
"benrs. " Numerous holders are ant TO be
not only Of the feebler class but also include
the least practiced and influential; and that
is very much the case in tue present
situation of the market The capitalist class
with heavy loads OF second and third rate
stocks, have succeeded in transferring them
to transient specul itive blJers; aud the
former class of operators, always 81 essen
tial to q successful "bull" movement, are
now out of the market, and their tactics ore
likely to favor tie bear" side until prices
are more tempting than at present. These
men are as the wind to the sails, the steam
30 the locomotive, the money that "makes
the mare go"; and a market without them
has usually very unpromisng prospect.
The present holders q stocks are, 10 IL
true, helped by the greater ease in m )ney,
by the general recovery Of conhde ce, by
the lafiux of foreign gold, and by all tle
good influences that atte d such an extrRor-
dinary harvest as has befallen us; and this
may enable them 10 hold on aud perhaps TO
secure occasional slight advances; but with
out the cooperation Of the great profe3-
slOnal bulls" they can make little progress,
and have the choice between a iudicious
yielding and a protracted dullness and stag
nancy that can be ended only by compul>
sorry realizing. There cannot be good
market without. good buying, and there
cannot be good bu ing without good buy
ers, neither OF which OF sufficient magnitude
exis.s ct present. There are plenty OF infu-
entail operators who, although they believe
in ultimately higher prices, YET think II
better to allow the market to rest for a
time; and they are likely to
continue TO pos pone operations until
they can get in on better terms than exist
at present. In brief, the market Is In the
unsatisfactory condition OF being strong
enough TO support prices, and yet not at
| tractive enough Co induce important strong
| hu ing. The issue of such situation Is
usually potracted and unbroken dullnase
which continues until holders are Wearlsd
| out or driven from the market; and there
4 Do f..
situation may run into just such a profitles,
condition. Under sue clrcumst inc0s, Il
seems the wisesJ policy for ldsrs to let 90
| part of thsir stocks ard Stand prepared
for getstng into fresh campaign, starting
from lower ass of prices and having the
support OF class who alone can make
boom successful
But while the personnel aud the make
up OF the market are not conducive
to progress but are calculated TO In
vite periodical "bear" attacks, the chief
current factors affecting the Intrinsic value
of securities are distinctly favorable. The
foregu demand for our wheat continues
upon very large scale, and ths yield in the
price of that cereal is calcula ed to stimu-
late It's export. The return OF gold from
Europe shows no symptom Of abatement;
and at Lond n the loss OF gold has SO far
produced no effect upon the Bank OF Eng
land rate. nor upon tho rate in the open
market, while in the stock market the
preference for American securities is caus-
ing q steady stream Of buying or
ders TO be cabled to New York.
This is certainly better con-
dition of foreign hna1ceJ than has been
anticipated The uneasiness caused by the
new Russian loan and by reports OF fresh
trouble in the Argentine Republic seem TO
have the effect of stimulating the London
demand for our investments. SO far as re-
spects our local money market, the imports
Of gold and the moderation OF theshipments
OF currency to the interior leave no doubt
that, for the remainder of the year and
probably until early next spring, there will
be no difficulty In procuring money for
stock exchange purposes This prospective
ease in the loan market is causing marked
Improvement in the demand for
railroad bonds, which Is factor
of real Importance to stocks. The
late reports Of da mage co cotton
are now followed by intelligence Of killing
frost in the cotton belt the immediate effect
of wbioh Is TO cause an advance in price
both here and in Liverpool. There can be
little doubt that considerable deductions
will have to DO made from the earlier. ssti-
mates OF this crop; but as the price will
| probably be correspondingly advanced the
| financial results Of the yield are not likely
| to be materially affected. u is unfortunate
that. with so many good elements in the
situation, the undue.forcing up OF prices dur
ing the late boom should have put the stock
market in position which prevents en- ad-
equate response to these factors.