The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-28
HENRY CLEws' VIEWS
Relative to Financial and Business Af-
fairs.


New YORK, Sept GA surprise has
come at last. Missouri Pacific broke nearly
10 points, and the street disgruntled at
this stoppage Of the boom in prospect hc!ds
Mr.. could responsible A reaction in
stocks, however, was desirable for pruden-
tial as we'll as speculative reasons After a
rise OF S(dl0 points in all the active shares
the danger of a sudden break was immi-
nent; and that it did not occur sooner was
simply due to the extraordinary character
OF the present market. The test of a re-
action was needed, both for assurance sake
aud to bring in new support; so broadening
the OASIS Tor further Improvement Besides,
active operators, who are important factors
In all speculative movements, dislike a one
sided market and prefer progressive fluctua-
tlons. For several days we have advised
our customers TO take profits and the course
Oh values fully justified this position. We
are still firm believers in high prices; for it
is as certain as the future can be that the
present movement is far from having spent
It's force. The public are daily increasing
their holdings, and there is material in the
present situation for the most active bull
market seen In years. Meanwhile, pru-
dence will be necessary, as in future we
look for sharper fluctuations and increased
manipulation.
stock exchange proved irresistible. Nothing
equaling 1t either in force or character has
been seen I'm years. Based on the soundest
OF all foundations, the profuse generosity of
nature and a healthy national prosperity. il
is evidently impossible to seriously check
the spirit of buoyancy thus impaired In
the course of time it will undoubtedly run
to excess; 1t will also be accompanied by
fluctuations Of varying severity; IL may be
that tDgtanraR fbn ad %
already beyond reason; but the one great
fact remains that Of all nations on the earth
we are this year most wonderfully favored
in respect to the pro iucts OF the sell. With
assured plenty at home and scarcity abroad
the farming classes OF the United
States have before them a period of
prosperity to which they have long been
strangers. Not only the railroads and busi>
ness interests generally will benefit directly
from large and paying crops, but in an
other respect 50 far not fully appreciated,
will they receive advantage. The farmers
OF the northwest have for years been over
ridden with debt; and the discomfort thus
promoted has been at the bottom Of all the
injurious currency and anti-railroad agita-
tions- Ii the estimate that our wheat, corn,
oat and cotton crops will prove worth S2.-
OOOrOOO,OOO, and there is no reason to doubt
these figures 1t is safe to assert that hun
dreds OF millions OF farm mortgages viii
be paid of, in part or full. Lenders have
had such unpleasant experiences with this
sort OF security that they will be glad to
regain their money and borrowers will be
equally eager to escape the
heavy interest charges which swamped
succeed discomfort amongst the farmers,
and wo shall hear less of the crazy currency
and silver agitations which have held capi-
/ tai in fear and trembling the last few
| years. For the farmers alliance there will
| bo no further use whatever: and we may
alto hope for more decent treatment of rail-
road interests from the various state legis-
latures. On the other hand, the capital re-
leased from farm mortgages must find In
vestnent somewhere; and this, as already
said, is point often overlooked in esti-
mating ths future demand for stocks. Such
Influences aB these are at the bottom of the
present movement, and account for the
stubbornness with which the public is
holding fast to stocks
Another feature Of strength is the for
eiRn buying Of American securities; opin-
ion regarding Ameri ,an investments Is
again changing in their favor, for the
obvious reason that they afford safer and
better returns than those of any Other
country besides possessing a ready market
at all times for their sale. The threatening
aspect OF European politics only serves to
strengthen this feeling; for, while sudden
crisis might cause temporary realzations,
it is well understood that the United States
would in the end suffer least Of all nations
in such a conflict; and that, therefore, her
securities would be the most desirable fn-
vestment. England has usually been our
best buyer but French purchases have
lately been a feature, and even the Germans
are reported 20 be Increasing their holdings
This means still larger imports Of gold than
would have been sent simply in payment Of
our grain and cotton. We may look for some
resistance, especially from the Bank Of Eng
land, to our importing gold; but that the
precious metal will have to come in large
sums Is Inevitable. Our wheat and other
exports win demand gold ir settlement; and
If 1t pays the foreigners better TO hold our
stocks than gold they will take the former
and return the latter. as indeed they are al
ready freely doing. All the best authorities
In Europe unite in saying that the United
States will draw heavy sums OF gold from
Europe, and nearly $4,000, 900 will shortly
arrive. This is important ia view of the
firmer tendency Of the local money market.
Call loaus have been steadily advancing,
and the increasing probabilities of manipu-
lation tended TO check the rise in stocks
Should gold continue to arrive as freely as
at present expected, the chances of any pro-
tracted stringenoy in money will be greatly
le,sened.
SNAKE IN THE GRASS