The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-24
CLEWS' VIEWS.
What a Shrewd Tanker Has to Sey
of the Financial situation.

What Shrewd Tanker Has to Sey
OF the Financial situation.
New YORK, Aug 22.-The spirit of i'm
provement In the stock market that set in
about two weeks ago is still maintained
though at the moment there are some symp-
toms of abatement. A variety of circum-
stances have contributed to this
CHANGE OF tone. To begin with, the
unfaVoraoI5 aspects OF the sirua-
ton had been considerably exaggera-
ted in the estimate of operators, whilst the
favorable ones mad been held in allegiance
or their influence exhausted: aud the mar
ket was thus pTe-exposed to sTmpathlze
with new and hopeful influences.
AT this Juucture came the intelligence of
even
LARGER CROP OF WHEAT
| than the previous large estimates had indi-
Gated, and the prospects Of the corn crop
also have exhibited steady Improvement
The iron trade has showed a marked recov-
cry. the combined June and July product
having equaled the extraordinary figures
OF last year, while the stocks on hand have
been reduced, which is favorable indica-
ton OF recovery in our industries at large.
The boom in wheat and rye consequent
upon the Russian ukase prohibiting the ex-
port of the latter grain, while inferentially
the long dormant speculation in the grain
trade. the contagion of which has readily
spread to che stock exchange The ten
dency OF information from Great Britain
aud the continent has been to disuel the
illusions about the supposed desperate con-
dltlon or transatlantic finances. AT London
there is a distinct
IMPROVEMENT OF FEELING,
ana athough business is quiet, conserva-
tive and uuremunerative throughout Enp-
land, yet a more hopeful feeling begins 70
prevail there. Even ray Of hope begins
10 GAVIN upon Argentine finance, and the
much deprecated securities of that country
rave, within the past week. shown a nota-
Die recovery. There can be no doubt that
the lvorable opinions and assurances re-
Gently formally expressed by tue governor
OF the Bank of EGgiand-to which aIlu.
sion was made in my advices of last week
nave also been very important contribu-
ton toward the recovery of tone; for it is
naturally reasoned that, if the bank looks
on the future with the comparative conf.
dence expressed by Mr.. Lidderdale, there
can he no reason why that instltu-
ton should use its power to prevent auy
return OF gold TO this country
mat the natural course Of the grain trade
may call for; which is the poinL on which
New ork especially needs assurance. The
sN@NStASoo money
from this center to the west has also had an
assuring effect, the more so as it puts back
that movement so much nearer to the time
When we may expect compensation for
the drain in imports of specie A week ago
we had a surplus reserve of SIT 600 coo
while at the same time Of 1890 there was a
| deficiency of 1865, 900, aud In 1889 a surplus
| OF only s., 90, GOO; which would seem to
| suggest that our current business with the
interior Is being conducted so as to avoid
aud undue commitments with that section
| ne erect OF this easier condition Is ao-
| parent In the increase of morey offered on
time loans for periods within SIX months
SPECULATIVE AND INVESTMENT DEMAND.
Putting together these several factors. il
| cannot be denied that they amount TO a
substantial Improvement in the situation.
and coming. as they have, in large meas
ure unex pectedly, it is not surprising that
tney nave changed the temper of the mar
| Ket and stimulated speculation, even to the
extent of bringing out an outside demand,
! oo6n speculative and for investment But
| on the other side, il should not be ignored
| thst undoubtedly the occasion has been
seized by parties long and heavily loaded
with unstable stocks for fostering specula-
ton and creating an opportunity to unload
Prudent operators will not overlook the
tact that there is a very important element
/
securities of badly financed corporations
and OF railroads which have become embar-
raised through eagerness to cover territory
winch for years to come cannot Weld a
| paying return upon the construction out
lays, This is pre-eminently the case in the
south and in the far west and southwest.
and the case of these properties is made
worse by the increasing hostility of the
granger and alliance factions to the rail-
road interest. This element is calculated to
have an important influence upon the Wall
street situation. At first the holders of
such securities. among whom are men of
large resources. will use all their influence
TO stimulate the market. but at the same
time they will be- sellers OF
their specialties until their individual
interest has been sufficiently served, when
that important set of supporters will disap-
| pear from the arena, and | shall be sur
prised If the loss of that element does not
prove severe shock to the market. For
TINS and other reasons am persuaded that
1t would be unwise TO assume that the pres
ent boom" is likely to develop into a con-
tlnuous considerable further advance in
prices. 1t would be only common prudence
TO let the market stand on further trial be-
fore trusting it confidently, and especially
as London is giving it no support but selling
out on our boom.