The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-21
BANKER OLBws' VIEWS.
What He Has to Say About the ]
nancial Outlook.

nancial Outlook.
New YORK, Sept. 19.-The stock market
shows renewed activity and strength. The
"bears." however, are not alone in the opin-
ion that the advance In prices during the
last few weeks should almost suffice for the
time being. Among the ranks Of the "bulls"
there are two classes who incline to the
same view; first, the conservatives, who
think that present prices are well up to the
preeent intrinsic value of stocks,
and doubt the expediency OF
forcing up values TO q point at which the
investment demand would be checked and
at which foreign holders, under the pressure
OF an American drain Of gold, might sell
out upon New York; and second class are
those who have unloaded large lines of
Long stock and are actuated by the purely
speculative purpose of being able to buy In
again at a lower range Of prices The
former OF these two classes is simply quies-
cent; the latter have been using their infiu-
ence, directly aud indirectly, to depress
prices.
For the rest, the market may be said to
| consist of the sanguine and demonstrative
class OF "bulls," who are always optimistic,
over-estimating favorable factors aud un-
| derestmating unfavorable ones, and who
act upon prospects rather than exis ting
| facts. When there is large outside inter
est in the market-which is the case a,
! present-this class of operators prove an
important element, for they all act In the
same direction so lcng as they are able to
| maintain their margins, and IL is therefore
| difficult to break the force OF their support.
At present the forces of the market arc di-
vtded into these unqualified bulls on the
one side, and the qualified bulls. and the
| professional bears on the other. The result
of such a contest under present conditions
cannot be much other than a succession of
slight fluctuations, with little gain for
either the one party or the other.
In judging what may be the outcome Of
this contest, il is important not to lose sight
Of the fact that the extreme bulls have In
view prospect which, If realized, will mean
more active and more prosperous condi-
| tion OF business and enterprise than exists
at present. We are in the midst Of pros
gressive Improvement, and each day brings
some new stimulus to the buoyancy of the
prevailing boom. Within the past week
for instance, we have had a government
| crop report Of unexpectedly high averages
of the condition OF the unharvested cereals,
large increases in tie earnings OF the rail-
roads, the beginnings of imports of
gold from the continent of Europe, and q
bank statement favorabl to ease In money
and in the meantime there are no unfavor-
| abls circumstances appearing, while the
market was wholly unaffected by the
| Mitylsne incident. In this sense it may be
said that much Of the building comes from
the course OF events, and In any case 1t can
| not be denied that such favoring drift Of
| occurrences strongly reinforces the sanguine
bull party while 1t induces caution on the
| other side Of the market. This tendency
| might be less important IL there were the
| caution usual at this season of the year
about the courss of the money market;
but the rehux Of gold from Europe hav-
ing already set in, the money prospects
ore an element OF encouragement int
rather than encouragement. Perhaps the
sole factor that can be regarded as seriously
| suggestive OF distrust is the grave condition
| Of European politics arising from Russias
coercion Of Turkey in relation 10 the pas
sage Of the Dardaselles. That may prove to
| DO a very grave question for tho great
| powers; but to the United States it could
| only bring important advantages in an In,
creased demand for our investments and in
the event OF war, for our food products.
| Nor is the negotiation OF Russia's loan in
Paris calculated TO appreciably affect
| American Investments in Europe, as the
loau will have to be taken almost exclu-
siyely by French citizens. who hold but few
| OF our securities.
With so many elements in favor Of the
New York market. and 30 few, or virtually
none, against it, It must be admitted that
the prospect Of making any adverse impress
| sion on current prices is not very encourage
| ing to the bears and those who may be tenn
| porarily working In line with them; and II
| would not be surprising should those who
| are waiting for a down ward turn in prices
| have to wait until some further advance
! has been made. But IL is doubtful whether
| at the moment this probability Is clear
enough to warrant buying. A noteworthy
feature of the market is its broadening
| character, stocks which have been long me-
| elected now springing into activity. Ia
| part this is due to the development of the
speculative spirit, and in part to the i'm,
| proved financial condition OF the various
| roads. The trunk lines are all reporting
large gains in earnings, aud this explains
| the rise in the Vanderbilts' and connecting
| properties, which has been one of the
hsalthiest features OF the market. The
movement in Atchison also had its founda
tion in increased earnings. In Reading the
| sudden activity was due 20 disbaniing ol
the pool. which locked up some 400, ,0Ot
shares, and SO discouraged all speculative
dealings. An advance in coal and the ap.
proach OF more active demand for tht
article also stiffened the coal properties
Several Of the specialties, such as Chesa-
peake aud Ohio, Ontario aud Western and
Kansas and Texas. are growing more act
i've, all Of which indicates broader aud
active market during the fall months.