The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-08-31
oLBwsp VIEWS.
a Bankers Review of the Financial
Conditions.

tJOnQlllOl16s
New YORK, Aug. 3O.-The "boo.nn in
the stock market has now had four weeks
Of trial. The movement has steadily
gained in strength and breadth; the bears
have retired from opposition to it aud
many of them have gone over to the other
side; it has commanded the confidence Of
London, which from being a free seller
has become an active buyer; it
has extended from tbe share mar
ket to the long dormant Dor 4
market; the volume of business has risen TO
three-fold what it had reviously been. the
ether specuiative cities have caught the in
lection from New York, an 'outsdenInter-
est has entered the market large enough to
show that there is no lack of either means
or disposition among the public to speculate
or invest when they are satisfied with the
situation; and prices have considerably ad /,
yanced, while the advance has not been
checked by reallzings which have been
made by large holders, butstil continues.
These facts arc sutflcIent evidence that.
at least, the BOOM is bscked by q large
measure of confidence; thas it is more than
a squirt engineered by few large and needy
holders Of stocks, as at first suspected and
that there is large body Of influential
opinion in Wall street aud out to the effect
that the present situation of the country
favors an era of national prosperity and
consequently better prices for investments.
Judging from present symptoms, there is O
reasonable probability of the boom being
supported and OF an actiYeland rising market
being maintained through the fall season.
Perhaps the only danger iies in the usual
tendency of speculative movements to rush
from one extreme to another and thorsby
quickly exhaust themselves. The spectacle
of such an extraordinary har-
vest as the present one is
naturally calculated to arouse a speculative
enthusiasm, which may carry prices up at
railroad pace to an elevation far above what
the occasion really warrants. Such move
ments are neither healthy, nor, in the long
run, really profitable. They end in explo-
sion and reaction, and entail heavy losses
upon the over-sanguine class to whom the
OVERRIDING is mainly due. The true course.
under the now existing conditions, is TO fol-
low the improvements in the situation us
they arise, rather than to take them for
granted in anticipation. Much Of the iinan.
cial force behind the present speculation
centers in the hands of some half-dozen
men Of great wealth, whose policy it is to
give encouragement and .'taffyn b the ma IS
OF smaller sanguine operators, and then sell
out upon their dupes. A prudent operator
them as new margin for increased pur-
chases, 80 as TO find himself finally among a
mass OF weak holders, who are unable to
sustain the market against strong men, who
want to break prices.
At the present moment there seems TO be.
In certain potent quarters, a desire to force
and initiate the market and then get out OF
stocks. There are long~hsaded and influ-
entail operators who perceive that prices
have already sufficiently advanced to satisfy
ell TINT Is certain and realized ia the situa-
tion. They arc willing 20 pocket the advance
tbat has come in sympathy with the har-
vested winter wheat; but they think it pru.
dent to let the Immature spring wheat, corr
and cotton crops stand over for a future
speculation, the drift Of which can be much
better judged whengthe contingencies OF
frost have passed. The sanguina holder Of
q few hundred shares, who takes every good
thing hoped for as sure TO happen, is the
Kind OF alimeut on which the more pruden;
and bigger fish fattens; and my word to
these average sized operators is that they
keep sharp look out for the safety of their
profits.
The money market affords, on the whole
an encouraging outlook. The reserves oil
the banks have at last begun to decline
freely under the drain OF money to the in.
terror, and large as the surplus is, as com
pered with one or two years ago, yet it il
necessary for the banks to depend upon
being literally reinforced with cash from
some outside source. Some amount may be
expected after Sept. 1, from the redemp-
ton OF United States Al per cents.-about
S2l 100000 of which remain to be extended
or redeemed; but what sum will be res
deemed the event only can show. The main
dependence Of the banks must be upon the
return Of gold from Europe, which seems
inevitable, the only open CUES,
ton being that Of amount.
Apart from the effects of the prospective
extraordinary exports of wheat, it deserves
notice. that the national exports are shows
ing large increase-those for July being
$500, 600 above the same month OF 1890
whilst the July imports fall 81, 2J0,0 900 be-
low those of last year. The securities move-
ment with London has, within the last few
days, changed from one of return to that
OF export; and the rates for sterling ex-
change show weakening to1de5cy in sym
pathy. 1t may be few weeks before specie
imports set In, but the prospective move
mont is near enough to prevent, in CON
Jnnction with the treasury payments for
redeemed AS, any important stringency
in the local loan market.