The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-22
BANKER CLEWs' VIEWS.
His Review OF the Financial Outlook
in the Money Centera.

In the Money Centera.
New York, June 2o.-The most signifi-
cant event Of the week was the reduction
OF the Bank of England rate of discount
from to per cent. For months past Lon
don has been the objective point OF interest,
the storm center, so to speak, OF the finan-
cial world; and the clouds Of distrust which
had gathered IN from all parts OF the world
threatened to burst with renewed fury over
those intrepid racers on the sea Of finance
who had been carrying an oyer-press of sail
In South American waters. The danger
signal, however, has been lowered; the out
look is brighter, and now that suspense is
relieved Improvement should naturally fol-
low. Enterprise OF all kinds has been held
In check for some time past by fears of
tight money. Conservatism appeared im-
perative in manufacturing as we'll as COM
mercial and financial circles; and no wise
manager cared to incur obligations extend
Ing into the fall months, which tight.
money market might interfere with. The
result has been a wholesome restraint IN all
directions; which, though pinching severely
In some quarters, has left general trade Ia a
sounder condition than before in spite OF
the common complaints Of dullness. The
reduction OF the Bank of England rate
means that the tension In Europe Is abat-
ing; that London is prepared for all Russian
demands for gold, and has no immediate
apprehension about sending gold back to the
United States during the fall months in
return for such grain and other
produce as Europe will be obliged to bring.
Coincident with the removal OF fears
about the foreign monetary situation, the
home outlook has also cleared and proves
more assuring. The treasury Is expected
to meet all obligations this fall so that un-
easiness on that score is set at rest The
hns, L.. /.
aud each year the west grows more inde-
pendent of eastern aid Then, too, the
money now in circulation in the United
States stands at about ,504 millions,
larger sum than ever before at this season,
and larger also than than at the times of
heaviest crop demands. In 1888, the year
OF big crops, the total circulation was ,S7l
millions, while now the amount in circula-
tton Is 1904 millions; showing Of 1873
millions In favor Of this year.
Further evidence OF confidence in the future
OF money is shown by freer offerings Ia time
money, extending from 90 days TO eight
months. Merchandise imports, though
| smaller than year ago. are still running
in excess OF exports, creating an adverse
balance; but the probability Is that this will
be settled later on In other ways than by
gold shipments; though, should further
amounts leave, no concern need be felt un-
less they reach much larger figures than
now seem possible. In the event OF addi-
tional shipments OF the precious metal, 1t
will be due TO the fact that we have, as
usual, but little else to send forward at this
season OF the year. II is the period between
hay and grass as il were. in our crops.
The wheat and corn crops are far the
most important OF any single influence
affecting the future Of stocks. Indica-
tions suggest the possibilities Of the largest
/ wheat crop on record, estimates varying
| from 100000, 900 to 550,000,000 bushels.
| These figures should leave surplus Of about
180, ,000 000 20 200, 900 900 bushels for export.
II prices only afford a reasonable profit to
| growers, and the shortage in Europe rem
ders It likely that they will, it is easy to see
the effect OF such harvest, not only upon
the interior, but upon the trade, railroad
and financial interest Of the whole country.
| Europe will have to take our wheat and
| pay as In gold. Our securities will become
| intrinsically better in the opinion of both
| home and foreign holders. In short, should
| present hopes concerning the harvest be
realized, 1t would impart degree OF pros
perity such as has not been seen for several
years past. However, II will not do to dis
count such hope too rapidly, The crops are
not yet beyond danger Prudent men will
therefore keep close watch on Drop news for
the next few weeks, and act accordingly.
There will be nothing 10 fear In the foreign
situation for some months to come July
disbursements are close at band, and an In
vestment demand of some Importance usu~
ally experienced for stocks during that
| ate future is hopeful, and favorable TO q
moderate Improvement in the business oon-
ditions Comfortable money, moderate
prices for stocks and good crops arc suf-
| fcient to counter balance all the weak points
| discoverable at this time