The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-19
BANKER CLEWS' VIEWS.
What He Has to Say About the Finar
cisl Situation.

What He Has to Say About the Finan-
cisl Situation.
NEW YORK, Oct. live have had an
other week of halt in Wall street, except at
Its close, when fair rally set in. The halt
may be said to have been in the nature of a
reaction from the late rapid boom in prices.
The bears have done their best to depress
values; but, having sold upon an
already heavily oversold market,
their efforts have reac ed upon them
selves, and their large outstanding liablli-
ties to return borrowed stock really
constitute the main-stay of the market for
the time being. The bulls show no hesitancy
In taking any amount of stock offered by
the opposite side: but such purchases are
probably made chiefly by professional or
room operators, who calculate upon making
moderate profit on an advance expected
when the large outstanding line of shorts
come 70 be covered. Probably a class of
large operators and the more conservative
among the outsiders have stood eloof from
other ana broader reasons.
There have been undoubtedly sound
reasons for the recent hating attitude. The
Doom has already carried the whole list up
TO much higher range OF values than were
probably warranted. To an important
class OF holders who carried weary load
OF second and third class stocks for many
months, tae advance afforded a chance of
realizing, which was not allowed to pass
unimproved. Those stocks are now in
the hands of a class who are much less able
TO carry them than the original holders and
the latter do not at present care to repur-
chase their specialties at the current range
OF prices. Beyond this the more prudent Of
the outsiders realized their profits, aud,
though still ardent bulls and prepared to
buy In again at the proper time, prefer to
reinvest upon 8 lower range of quotations
All this is prudent. and it is assuring to
witness such evidences Of sound methods in
speculation.
1t is moreover TO be considered that. al
though the whole range of conditions affect
ing Wall street interests is in an unusually
hopeful position, yet the past rise in prices
has also been very important, if not quite
commensurate with a conservative estimate
OF those ballish factors. The crop situation,
which was the principal cause of the boom,
is not yet completely developed. Between
the injury to spring wheat from the late
storms and the increased yield Of winter
wheat, 1t can only be roughly guessed what
will be the domestic output of that cereal:
while the estimates Of the European crop
are improving aud may quite possibly reach
considerably larger dimensions than have
hitherto been expec ed. The cotton crop
49, oSA ~ OOS VOC uOAJ kuosSG4 Au llo press
ent stage. The government October report
shows very serious decline from the con-
dltlon given in the estimates of September.
but there is much distrust that the data on
which the bureau Of agriculture bases its
figures may have been distorted through
Influences coming from the farmers alliance:
and this suspicion is countenanced by
the tenor OF private advices as
we'll as by the unprecedented volume of the
CnFrAnt repnints of cotton Tbara
ever. so many contingencies about this
crop for the next few weeks that no expert
would venture definite estimate of it until
December. 1t is also to be noted that while
the business Of the country at large is
steadily improving, yet at present there is
no such boom in general trade as has been
expected from the extraordinary harvest:
This, however, is largely explanable from
the TACT the real results of q good harvest
do not come until the products have been in
a good measure marketed, which,
az this stage, is not true of
any Of our farm staples.
Owing to these uncertainties about the OUT
come of the grain and cotton crops, there is
a corresponding uncertainty, for the time
being, as to what may be the course of rail.
road traffic. While. therefore, there can be
no question about the ultimate abundance of
the crops and of the beneficial effects of that
abundance upon the general trade of the
country at later period, yet these uncer-
talntiee as 70 certain details justify some
hesitation in speculative transactions, and
afford moderate material for helping those
who may be interested in a decline in the
prices Of securities
1t cannot be denied that there are factors
in the European side Of the market that
are hopeful for its future course. The i'm
proved promise Of the British harvest hos
produced a better feeling in London. That
factor suggests the probability of the i'm
1oTtations of grain falling below what has
c0sn expected which so far favors G
smaller expectation of gold TO this country
than has been calculated upon. Probabili-
tiss of this character have produced
stock market, the benefit of which
has appeared In f1rmer quotations for
American securities. 1t seems to be largely
due to these more favorable aspects that the
Bank OK Eng and on Thursday Continued its
rate of discount at per cent. contrary to
the general expectation that it would be
advanced the action of the bank, however,
may also have bsen influenced BY the fact
that the exports of gold to the United
States have within the last week or ten
days shown some abatement.
AT this point money, both on call and on
time, works easier, owing to the imports of
gold and the declining demand from the
interior for currency. This feature facih-
tates the carrying of stocks and is 50 far
bull factor of some Importance.
For the present, the situation warrants
conservatis n. The halt in the upward
movement is Liable to produce frequent tenn
porary drops and quick rallies in prices;
aud it is advisable to wait for tae periods of
such fluctuations as the safest occasions for
either buying or selling. Bat notwithS
standing the prudence of these reservations,
| see no reason for any weakening of conf
dence in the ultimate revival of the boom
and in further advance of prices when the
later benefits of large crops and of abund-
ance of money mako themselves more
broadly felt.
unrr DAM NTAnADA