The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-11
BANKER CLEWs, VIEWS
OF the Financial Situation as Seen
From Wal Street.

NEW YORK. May 9-The "bull" cam
paign has now had three weeks Of trial
The result proves that it has been based
upon natural conditions aud has rested
upon solid foundation. During the last
four weeks we have exported about So
| 100000 of gold, which has to that extent
depleted the reserves Of the banks; and
this has been not only severe but also a
more or less unexpected test of the
strength OF the stock market. Under an
ordinary state of things such drain would
have sutticed to cause important selling Of
long stocks and a big decline in prices; but, in
the present condition Of things, whilst it has
encouraged active selling by the bear" op-
orators, it has not prevented material
rise IN prices and has simply acted as a pre-
VentlVe OF still further advance. 1t is
another evidence of the intrinsic strength
OF the market that not only has the upward
movement had little or no support from the
London and Continental markets, but it has
actually had to contend with the return of
securities from those sources.
These facts show incontestably that the
success OF the "bulln campaign, thus far, is
due 10 bona tide recovery Of confidence
and to solid cause. At the same time, how
ever, the larger operators are wise in their
disposition to postpone any extreme urging
of the rise until the uncertainties attending
the money market are mitIgated. At pres
emit, the end OF the export OF specie is not in
clear sight. The European money markets
are kept unsettled by the still disturbed
condition Of South American finances and
by the possibility that Russia's expen-
ditures for ornaments and railways,
also preparations for conversion Of a
loan, may withdraw large deposits now
resting at foreign centers; and Thursdays
advance of the Bank of England rate of
discount to per cent. is an expression of
this uneasy feeling. A crisis at any of the
European money centers might easily in
crease our shipments of gold and send home
American securities; and such crisis is far
from being beyond the range of possibility;
there are, indeed, those who think such an
event probable. Until the probabilities Of
such disturbances are dissipated, the pres
ent range Of prices is safer than a higher
range would be; and the more prudent
operators appear to hold that view.
But while it may be prudent to maintain
this attitude for the time being, that fact
does not warrant any unfavoraDle inference
as to the position of the market at a later
stage. A few weeks later, not only will the
European demand for gold have been sat
ished, but the situation arising from the
results of the worlds harvests will necessi-
tate material redux of gold to this coun-
try. The recent cold wave has come TOO late
to cause any appreciable injury to either
latest advices from the other leading wheat
growing countries afford little improvement
on the unfavorable prospects of their Tar
vest, and we have, therefore, still a reason
able promise of an extraordinary export of
this cereal at much above average prices.
This alone is sufficient to insure course
OF the foreign exchanges that will
contribute largely toward meeting the in
terror demand for currency during the fall
months In the meantime the reserves of
the New YORK banks are not suffering any
actual reduction, the Withdrawals of gold
Tor export since the beginning of April hav-
ing been set off by the return of currency
from the interior and the exchanges with
the sub-treasury. Whilst, therefore, there
may be reason for moderation In stock oper-
atlons for the moment, there is none for
apprehension as to the future; on the con-
trary, any favorable turn in the European
situation or in our foreign exchanges would
be accepted as sufficient reason for the
resumption of activity in the bull" cam
paign.
The serious labor disturbances in Europe.
on May !, have been an unsettling factor
on the for eign markets during the week.
with which basinesS here has in some meas
ure sympathized, but, on the other hand.
this has been offset by the abatement Of war
gossip at the continental capitals. Here,
labor day" has passed with less agitation
OF the eight hours question and less display
OF the socialists agitation than had been
expected, which is valuable contribution
toward confidence and enterprise in business
at large. The spiritof trade throughout the
country is steadily gaining in confidence;
and neither the labor market nor the capital
market shows any lack of wholesome en-
ployment Should the anticipated ahund-
ant harvest be realized. the resulting pros
perity Of the farming interest will tend to
create fail business of unusual activity,
with season Of unusual earnings for the
railroads.