The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-14
CLEWS' VIE WS
OF the General Outlook IN Financial
Affairs.

sellers have included many large and in
fiuential holders, and the bears" also have
made short sales. These combined tran
sactions have been large enough to try the
confidence of the market pretty sharply;
but their effect has appeared rather in
checking the upward tendency than In pro-
| duclng any material decline in prices, In
other words, the result has shown that the
disposition to buy about equals the dis
position to sell
The condition of the market must be con-
coded to be a strong aud healthy one. The
speculative movement is backed by re-
vival OF the long dormant investment de-
mand for bonds and the better class Of
shares, and a considerable amount Of Sc
curlties are going out OF the floating supply
into the strong boxes Of permanent holders.
| London, Boston, Chicago, Philadelphia and
the minor cities participate In the
renewed activity, ana appearances in-
dicate that the boom" has SUBJ
stantial elements OF permanance.
1t remains to be seen what may be the atti-
tude OF the important class Of operators
who have been realizing. Some OF them
conclude that they have been hasty in
realizing and are buying in again; but
larger proportion are waiting, or perhaps
are using their influence to create a reaction
in order to get in at lower prices. 1t seems
reasonable TO infer that, unless some unfore~
seen initiating element appears, the present
halting attitude Of the market may be con-
tinued somewhat longer without any
extreme changes in prices.
1t can hardly be questioned that the
| statues OF the chief conditions that regulate
values has improved quite as much as prices
have advanced. In every condition there
has been gain beyond what was expected
six weeks or two months ago. The appre-
tensions then felt about the supposed weak
ness of finances in Europe have been dis
| sipated by large recovery Of confidence
and even by the beginning Of revival OF
speculation, especially in American
securities. 1t is no longer ex-
| peced that any attempt will be
made by the British and continental banks
to interfere with the natural course of ex-
change resulting from unusual imports of
| American grain, which removes the dis
trust at one time felt as to the return Of gold
and the consequent course of our fall money
market. The outflow of currency Co the in
| terror turns out TO be lighter than usual, and
although the loan market may work into a
more active condition later, there is no GER
tain prospect of special stringency and no
difficulty in procuring timc loans for stock
exchange purposes
The crop situation has almost passed the
stage Of possible adverse contingencies. The
corn crop, according to the government re-
port Of Sept. l, shows an improvement
over the condition in August and may be
already considered As virtually beyond
reach of frost, and the late storms have
caused but little discounting of the earlier
3 good p ospects. The reports of damage 10
spring wheat in the far west prove to have
, been exaggerated, and we may safely count
upon total yield Of $4,000, 900 of bushels
of that grain, in excellent condition and of
far better than average quality. The re-
| ports Of damage from worms to the cotton
crop have undoubtedly been grossly mag
nified; for that kind OF injury is now so
largely under immediate control by the
planter that it is no longer the source
OF danger 1t once was Besides, even
supposlng that loss of S250,000 of
bales were to arise from this cause, it is
more likely, in view of the present large
stocks, that it would increase the total value
Of the crop than that it would diminish it.
The general conditions of trade are encour-
aging There are nowhere aOy specific
complaints, nor is there anywhere boom,
but the feeling on all hands is hopeful for a
good and prosperous seasons business In
the iron trade, the flrmer tone of prices
indicates the beginning Of better demand.
The increase in the current consumption of
coal is a clear evidsnce OF growing aodv~
ity in our industries. The earnings of the
railroads show gaining rate Of increase
over those Of last year, whi,h is also evil
dence Of a steady expansion Of the CONNER
cinl movement.
The uueasness felt in some quarters in
prospect of the demands upon the treasury
for the redemption of the Al per cents. is
found to have been ungrOunded. Already
about $1l 100000 of tue obligations have
been redeemed in cash, and the facility
with which those lquidations have been
met removes any doubt about the ability Of
the treasury TO deal with the outstanding
remainder OF about S13 900, coo, the more so
as the surplus of gold beyond the require
ments of the greenback reserve now
amounts to. about $50, 100000
The foregoing are tho main conditions at
present surrounding the market. They
certainly are more favorable than has been
expected. and they must be regarded as laying
the basis of year for unusual if not unpre-
cedented, tonnage on our railroads and for
prosperity which is likely to develop into
an area of marked industrial and CONNER
cial activity. Indeed, America is now
beyond doubt under an impetus which will
soon force 1t to the front Of nations, where
it will stand pre-eminent in the business
world. All these results cannot come at
once; but it is the won't Of Wall street to
anticipate coming good times aud the
question of the moment is-how far will
speculation discount these prospects in ad-
vance. and how far will it wait for them
AT present, the prospects are plainly to-
ward higher rates for money, to continue
for the next few months in fact excessively
easy money is now about over until the
middle Of next April; the OILY contingency
to the contrary being the possibility Of a
large refiux OF gold from Europe It is
quite possible, therefore, that at later stages
the condition OF the money market may
force cut "long" stocks and cause, at least
temporarily, lower prices than those now
prevailing.
At the moment, there are too many bulls
and too few bears to make the market q
safe one to buy upon, except upon setbacks
and, owing to the lack Of a large short in
terest, good depressions may be expected to
occur The granger and southwestern
stocks have largely helped to carry the mar
ket where it now is, and their Improvement
has about exhausted itself for the present
at least; for this reason, among others,
it seems safe to bsgin to sell
long stocks The Union Pa,tho di-
rectOrs have ratified that company's
deed Of trust; but as the arrangement is
nothing bey md a means for extending a
virtually bankrupt corporation, it should
not have the effect of enhancing the value
Of the stock. In view OF these considera-
tions while regarding the situation as In the
long run a good one, deem il prudeutsat
this juncture in developments to
maintain a conservative attitude, and TO
husband profits rather than put them into
new purchases at present prices
HENRY CLEws.
Monkeyed With a Dynamo.