The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-04
THE MONEY MARKET.
A Wall Street Brok RS Review of the
F nauciel Situation.

] r nauci6l Situation.
NEW York, May 8. - Banker Henry
/ Clews reviews the stock market as follows:
Favorable conditions still predominant in
the stock market. Prices have risen fairly,
and the reactions which accompanied the
advance simply served to strengthen the
situation by encouraging new buying and
giving the market more substantial basis.
he outside interest is now larger than seen
for many day, and shows a confidence
which the attacks of traders and profess
SIGNALS were unable to weaken. There is
no question about present conditions justi-
flying the higher range of values. As al
ready shown in these advlces, the crop
situation Is strongly in our favor;
and the effect of full crops
here, with shortage abroad,
Is now beginning TO be appreciated. That
gene. al trade is dull Is no argument against
stocks, for experience shows that activity in
both is rarely coincideut. When business is
on the rush merchants find more lucrative
| employment for their funds than in Wall
| street. In the coal and iron trades, how
! ever, there is an improved tone, and this
necessarily strengthens confidence in that
class Of stocks. The averting of the threat
ened miners strike for eight hours is also
reassuring, as it indicates a more temperate
| policy on the part of labor leaders For the
| last three or four years the whole country
has been thrown into state of
apprehensiveness about May by
immense labor demonstrations, but the
| condition of the coal trade was
unfavora lie to the demands made this year,
and the leaders showed their wisdom IN
waiting for better opportu lily. Railroad
earnings display very satisfactory gains,
considering the heavy totals of last year.
| with which they are compared, and several
important systems are expected to make
| better net comparisons in the future owing
to reduction in expenses for betterments.
| London has again become a purchaser of
| American stocks, and the continuance of
thu Bank Of England rate at 81 per cent,
| in spite of expectations to the contrary, bad
a stimulating effect upon this market
Gold shipments continue, over $4,000
900 having been shipped this week,
bat the foreign demand for
| stocks serves to somewhat counterfeit this
movement. Thursdays meeting OF railroad
managers was entirely satisfactory and har-
| monious Under these circumstances | am
| inclined to the belief in well-sustained prices.
At the same time, values have already ex-
peflenced a considerable advance, and
| realizing movements are to be expected
| The market is still very susceptible to I'M
| favorable influences; so that buying must
be conducted with prudence, and on all good
rallies il is advisable to secure profits.
THE FUTURE OF THE MONEY MARKET.
A good deal Of foolish talk about the
| future of the money market has been excited
by the probable demands upon the treasury,
| resulting from the extraordinary appro-
priations of the last congress. Attention to
the matter was emphasized by Secretary
| Fosters action in disseminating the purchase
OF AZ per cent. bonds for the avowed pur-
pose Of "reserving the residue of AZ per
cent. loan for adjustment within the fiscal
year which begins on July l next" This
action on his part was simply precautions
airy measure, and one to be emphatically
| Endorsed. In the present condition of the
| money market, there is no occasion what
ever OF the treasury buying bonds to satisfy
currency demands. During the next fiscal
year sinking fund requirements will call for
about $40, 100000, and it is certainly prudent
on the part of the Secretary to strengthen
his resources against future demands at a
| time when, like the present, such action
will be least felt. Moreover, there are
about S5l, 100000 of these AZ per cent.
bonds outstanding, of which over 1874, 0O0,-
900 are held by national banks as basis
for circulation, and a number of prominent
bank officials have taken particular pains to
impress the secretary with the advantage
of extending these bonds, temporarily at
least, at 2 per cent. thus saving the banks
the necessity of further contraction in cir
culation, and relieving the treasury OF the
obligation of redeeming all or part of the
S51 900, 000 should such course be deemed
convenient to the government. These con-
siderations alone are sufficient to justify the
temporary suspension Of bond purchases.
GRoUNDLEss APPREHENsIoNs.
The apprehensions, however, that the
treasury will be unable to meet its obliga-
tions are altogether groundesS, and car
only be attributed to ignorance, else tc
rumors circulated for speculative and politi.
cal effect. The fear of any intrenchment
upon the traditional $100,000.00J gold re-
serve arises only from lack of knowledge as
to the treasury's real condition. At the
present time there is in the treasury over
Sl42 900 gold in excess Of gold certi-
ficates outstanding. The banks hold $2S,-
600 900 of government deposits; in addition
to which the treasury holds about $50, 000,-
600 fractional silver and about Sl5G0O, UOC
against which no certificates have beer
issued. Excluding the $l00 000, 900 gold
held for redemption Of United States notes,
here are resources available of net les,
than $l05, 100000. 1t is quite true that the
demands npon the treasury will be enormou
at q time whom its income will be clrtailed
by the adjustment of sugar duties. 1t i,
quite true, also, that those demands will
oblige prudent management of the nations
finances; but the resources of our fisca
machinery are varied and ample enough e
looked that many of the liabilities INQUIRE
by recent legislation, enormous as they are
cannot all become due in a single year
Payments upon many of these approprie.
tions, particularly. those upon public works
necessarily extend over a considerable
period, aud are not made in lump; besides
. the COVER lment can aud always does con
, suit its own convenience IN respec
, to meeting large portion O
its current obligations. Differences o
|, opinion may exist about the wisdom anC
extravaganza of q congress which imposed
! such burden upon the treasury; and il
, certain quarters efforts are certainly being
! made to exaggerate the changes in policl
thus imposed; but all fears respecting tn,
/, latter's ability to meet every probable de
: mand are too absurd to deserve considera-
= ton. a god deal of speculative capita
will be made out of any new departure il
. treasury policy which circumstances ma,
: require, but those who are banking upon tn
! possibility of the United States entering th
: market as a borrower next fall are likely t
! fud themselves very much deceived.
: IITTT r REST