The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-15
BANKER cLEws' VIEWS
On the Financial Outlook of the
Country.

On the Financial Outlook of the
Country.
NEW YORK, June 1S.-Events during the
week were mostly of favorable character.
The situation abroad, which has been the
chief source of anxiety, shows further satis~
factory improvement. The best evidence
of this was the decline in gold shipments
and the rise in the Bank of England's pro-
portion of reserve to Liabilities from A IS
per cent. to 46.06 per cent. in a week. On
May z, or little over q month ago, the ratio
was down to SO IS per cent ; 10 that it can
be seen how successful this institution has
been in strengthening its reserves. The
bank now holds about Is, DOC, 900 gold more
than at this time in 1890, and is in a much
better position to meet all probable de-
mands than was thought possible few
weeks ago. Whatever sums may be with
drawn by Russia, they will shortly be dis
bursed again in debt payments. The bank
rate Is still held at per cent, but in open
market the rate for money is to 215 per
cent, suggesting further decline In the
official rate. Another indication OF reviv
ing confidence in London was the failure of
the joint stock banks to support the Bank
of England in maintaining discount rates.
This movement included several of the
leading banks of Great Britain but was a
complete failure, for the simple reason that
borrowers had no dincuiby in finding ali
necessary accommodation elsewhere at
lower rates. The favorable progress of the
Barring liquidation also exerted a good
effect; and, altogether, the outlook at the
worlds financial center is certainly much
brighter than IN March or April Paris
and Berlin are still in somewhat straitened
circumstances, but less tension is naturally
| reported there as a result Of improvement
| in London.
1t is upon the home situation, however,
that we chiefly depend regarding the future.
Europe may, if she wishes, temporarily
lessen her holdings of American stocks, but
their superior intrinsic value in comparison
with other Investments is tcertain TO assert
| itself and restore them into preference
again. II Americans are the best securities
on which TO realize in times of depression,
they must be the best to buy when the
change for the better sets in. The all-im-
portant factor in determining future values
OF stocks is the crop situation. Happily,
this is In our favor. as frequently pointed
out and as the season advances evidences OF
| Improvement seem to multiply. The GER
talnty OF an abundant harvest at home and
| a deficient one abroad increases each day.
Our crop bureau states that the increase in
| winter wheat acreage is Ills per cent, and
| in spring wheat g. per cent. while the con-
| dition of both stands at the high average Of
| 96.6 per cent. and 92.6 per cent,
respectively. To more fairly understand
| the effect Of good crops upon business and
railroad interests it should be remembered
that at present we are suffering from the
| short crops of 1890. In spite of this draw
| back, the declines in earnings are small and
| many roads show unexpected gains when
| the unfavorable conditions are taken into
consideration. Money continues easy, and
| promises to so continue until the crop move
s,Nfk 10
| to increase supplies. More attention has
been given to Secretary Fosters action in
| extending the AZ per cent bonds than the
! question deserves. do not believe he will
attempt any step that means contraction of
| the currency, for that would be less popular
| than success in extending those bonds at
IL per cent Every one understands, also,
that such low rate of interest is possible
only because of the advantages Of holding
these bonds other than their safety and the
high credit Of the government.
Western banks, who hold the
| bulk of outstanding AS, may be willing to
accept lower rate Of interest than Eastern
banks. the higher money rates of the west
rendering circulation more profitable in
that section than here: but, as just said,
| more Importance has been attached to this
| element than it deserves. The treasury is,
| upon Secretary Fosters statements, able to
meet all obligations, and the monetary
| outlook is clear until the fall. When
the crop movement begins, then eau
| ton will be necessary. II is likely
that. through sales of produce and
possibly securities, we shall regain much of
the gold recently spared. The bank re-
serves are in good shape, and it need not be
forgotten that each year the west shows
itself less and less dependent upon the east
for its supplies of money, and the coming
fall may prove no exception. We do not
look for any radical or immediate change
in the stock market, but the present posi-
ton of affairs certainly justifies taking q
more hopeful opinion regarding the future;
and good stocks at present prices ought to
| yield profit to buyers with reasonable ex-
| pectations.