The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-29

the past and present quiet of the market, and
as suggesting reasons for moderate expsc-
tations for possibly some time to come. Il
would be mistake to infer from them that
the promised abundant harvest, the COM
parative ease in money, the relatively
strong condition of the bank reserves, and
the probable return of large amounts
of gold from Europe within
the next three months, will have no effect
upon the demand for stocks during the sum-
mer and fall months Such contributions
to the national wealth and to the opera
tons of trade as must come from an extraor-
binary harvest cannot fail to materially
augment the funds seeking investment and
to swell the floating balances that constitute
an important part of the resources that con-
tribute to transient speculation. 1t is not
impossible that these reinforoements may
suffice TO compensate for the loss of spec
ulative means above referred to.
1t is moreover Co be considered that the
summer and fall months are almost without
exception attended with an advance in
prices A morning journal recites facts to
show that in twelve of the last fourteen
years the prices of stocks advanced after
July 1st. The following Is copied from its
statistics: ''In twelve out of the past four
teen years prices advanced subsequent to
July l. In the statistics following the
average price of twenty active stocks is
knA0u Do q bthuudiQ. Ia 1Otts D6IWoou
June 80 and Oct. Is, there was an i'm
provement of fifteen points. In 1878 the
improvement did not set in until August
and extended to only four points Oct.
l. The banner year was 1879, when there
was an advance OF twenty-three points
from June 80 to Nov. 10. In
1880 the advance between the same
dates was twenty-five points. During
August and September, 1881, there was an
advance IF " rninta nnrfne Inn T,rlxx
and August, 1882, the advance was fifteen
points. In 1888 the record Of advances was
broken. In 1884 the gain was twelve points
in July and August. In July, August,
September. October and November. 1885,
the gain was twenty points. Between June
and December, 1886, the advance was
thirteen points, During September and
Between June and October, 1888, the adj
vance was eight points During August
and Septic nber. 1889, the average was adj
vanced about five points. The course of
prices In 1890 was downward from May /,
eliminating in the November furry This
plainly demonstrates that there is a law in
the course of prices which it is reasonably
safe to regard in making transient invest
msnts in stocks
Considerable surprise is felt at the con-
tinued exports Of gold, though they are on
reduced scale. It is inconceivable that,
after the extraordinary amount of cash
liquidations this country has lately made,
there can be still outstanding against US an
adverse foreign balance. We must there
fore regard the continued shipments as due
entirely to special causes. The principal
cause appears to be that while there is an
abundance of exchange being made to meet
all necessary requirements for remittances,
yet considerable portion of the bills
are unavailable in consequence of the
credit of the payers having heen unfavorably
affected by the prevailing financial distrust
in Great Britain and on the continent. This
causes scarcity of negotiable exchange,
and the result is that we are remitting gold
ct q time when the balance of our account
with the rest of the world is in our favor
While this causes an unsettling drain upon
our cash resources. there is the satisfaction
chat 1t correspondingly augments the
amount of gold to be returned hither at a
later stage.
Taking the situation as a whole, regard
it as favorable to en- untimely higher range
OF prices. but, at the same time, the inn
mediate future seems to warrant nothing
beyond moderate purchases on the raids for
small profits.