The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-10
BANKER CLEws' VIE VS..
What Ee Has to Say Regarding the
Financial Situation.

Financial Situation.
NEW YORK, Aug. s.-During the past
week, the stock market has shown more ac-
tivity aud some recoveries in prioss; but
the advances have been mainly due to in-
creased sales by the bears" baving created
sudden demands for covering shorts,
while there seems to be no Improvement in
the real spirit and tone of the market. No
sooner IS one line of short" contracts liqui-
dated than another is put out at the conse-
quent advance; which IS evidence Of in
creaslnR determination on the "bear" side.
The disposition TO sell has been increased by
the notable weakness of the Gould stocks |
and especially of Union Pacific, which
seems to have no friends either here or in
Europe; and il Mr. Gould Ia not an active
bear" he Is at least counted in street opin-
lon, as passive one. which for practical
purposes is reckoned as being almost the
same thing. as it leads others to sell with
all the more assurance.
All the symptoms indicate that it is hope
less to expect any extravagant buying
spirit until there are stronger Indications Of
removal of tho prevailing distrust than at
present exist. The booming tendency of
good crops is now little heard Of for the
reason that there are SO many serious OBJ
stacles TO that factor having the effect upon
prices that would attend II under normal
conditions. How much Of our grain can
Europe takel What prices will Europe pay
for our wheati In what form will it pay
for it-in gold, in goods, in returned securl-
ties, or even through borrowing in the
United Statess II the payment is not made
to liberal extent in gold, what will be the
resources Of our banks for meeting the
western fall drain Of currencyl And If Sc
curitieS should be returned to even but a
moderate extent. what would be the ability
or our market to receive theml And, again,
how far will the present unsettled condition
of European finances tend to embarrass the
financial and commercial markets under
the extraordinary importations Of American
grain that will have to be madel
These are the kind OF questions that are
now occupying the attention of tho specula-
tive interests. Every one of them has q
direct and vital bearing upon the value of
securities; and yet it is impossible to form a
satisfactory Judgment about the probable
outcome Of any one of the problems. A
general feeling of uncertainty is the result;
and uncertainty is even more demoralizing
than clearly understood actual catas-
trophe. 1t paralyzes enterprise, causes a
general taking-in Of sail, contracts credit
discourages buying and encourages selling
and produces a shock OF general apprehen-
sion. No doubt, the current adverse
probabilities OF possibilities are exaggerated
Au kud DuDAlO Duk lnnb IL q COuklQoTA~
t1on OF little practical value; for in q dubi-
Gus situation it is but human nature to dis
count and to prepare for the worst that may
happen, and prudent men are always found
willing to make a sacrifice In order to escape
possible disaster While. therefore. it may
| be cOaceded that fear is now exaggeratina 4
more or less the gravity Of some aspects OF
| the foreign situation, yet that fact cannot
| be expected to prevent great deal of realig.
1 inO Earnriffag and kbnEafOra
| be trusted to avert consequent decline In
| prices.
The resumption Of the silver agitation is
also calculated TO encourage this distrtIst
and is actually amounting 90 a pretty stub
born bear" factor The apprehension on
this account, however, is perhaps more due
to the seriousness Of tho view taken of tie
situation that would arise should free
coinage law be actually enacted, than it is
to any positive expectation that such a
measure will really find a place in our
statutes. b Politics, however, are in an ab-
normally confused condition. Parties are
willing to buv success through almost any
concessions TO popular camor and however
repugnant free coinage may be to the
common sense and the moral sense of
majority of our people, it Is not impossible
that the fundamental principles of a sound
currency may be sacrificed to win a small
minority Of misguided voters. There is
therefore uncertainty about the final OUT
come Of the silver agitation; and but
small degree of uncertainty about matter
so vitel to investments and TO the general
welfare of the country is quite sufficient to
depress the stock market.
These uncertainties have their natural
effect upon the banks and upon lenders
generally. The reasons that are inducing
European banks TO accumulate cash and
hold to il tenaciously are causing our own
banks to keep their loanable resources
within easy reach. They will lend on call
to any extent and at almoSt any rates; but
time loans can be procured only with the
utmost difficulty and upon a class of
collatsrals that are very scarce. II
Is true that the last bank state
ment showed an amount of surplus
reserve 1lS per cent. higher than that Of the
same date in 1890 aud 1889; but it Is also
true that the west will have wholly un-
precedeneed surplus Of wheat TO send east,
which places us in a condition of very deli
cate dependence on the problematical dis
position Of Europe to exchange its gold for
our grain Under these circumstances It
would be almost impossible TO borrow large
amounts of money for long purchases of
stocks even did conditions happen TO en-
courage such purchases.
On every side, therefore, influences seem
TO favor q continued conservative DOlicV.