The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-10-12
CLEws ON FINANCES.
Something VIII Have to be Done If
the Market is to be Lively.


the Market Is to be Lively.
New YORK, Oct. 10-The course of values
upon the stock exchange during the past
week has been in close accordance with
what was indicated in these advices three
weeks ago. The rise has been checked:
profits have been turned into cash, and re-
cesslons OF varying Importance followed.
beyond the breaks in Missouri Pacific and
kock Island there has been no fresh cause
OF weakness, save the withdrawal OF Lon
don support. Nevertheless, the market has
been dull and listless. On the one
side there is an almost impenetrable
pulWark or confidence in the future. which
makes every holder of stocks large and
small, obstinate in tho refusal to sell The
natural result is stagnation. The market
mas literally been bulled to death: and
nothinS snort OF shaking up of some sort
win llIt IL out OF present conditions I'M
less the leaders soon bestir themselves the
oppo tunlties FOR an active bull market dur
ing the next few months will be- materially
modified. Leadership is essential. aud To
be successful it must be of the sort
that attracts, not repels followers. Activity
Is what is needed. Every one recognizes
tnat the rise has been sufficient for
1he Tune oeing. 1t Is going little too fast
TO tnlnk or discounting the gains of twelve
months In as many weeks. Rest and re-
action are necessary to, check imprudence
and obtain broader and safer views OF the
future. For the last few days transactions
have been left almost entirely TO traders.
who made little impression upon values.
IL Is probable, then, that present inactiv-
ity II continued will lead to somewhat
lower prices. Those who have tak9n
profits are already anxious for a
decline which would admit of new
buying and afford the basis Of further rise
later on. NY opinion Is that the activity OF
the market would be more benefited in the
end by fair decline rather than an advance:
and, with speculative forces divided as they
now are, the outlook is certainly more
favorable TO fall than rise. AT the same
time the exceedingly strong undertone OF
the market cannot be overlooked; and, until
events shape. themselves more definitely we
may expect good trading mar ket In which
quick turns are preferable 60 long holding
London appears TO be some what uncer-
taiu factor, chiefly because Of the monetary
situation there. II is possible that we will
have drawn from S35 900, 900 to $4,000 900
OF gold from Europe 10y the close of next
december. We have already taken about
Sl5.OOO,O0O during the season. The Bank
OF England is disposed to resist this move
ment in degree and much II the demand
Will tall upon Paris, which is fortunately
we'll prepared to meet it. Ii is also to be
remembered that the failure Of crops ia
Europe will cause there stagnstion of trade
and discourage speculation, thereby LESSEN
Ing the demand for money. Political,
financial and monetary affairs in
Europe arc all in complicated
and delicate condition. Henoe, il
IS impossible to accurately forecast their
outcome; SO that, however superior the in
ducements OF American securities to for
eigners, 1t Is quite within the range Of possi-
bilities that hey may rot be able TO avail
themselves OF such advantages as freely as
we expect. In other words, IL will not do
to count too strongly upon foreign support
in event of further rise. Money In Lon
don has been quoted at 5056 per cent. for
carrying American stocks, which caused
increased orders TO sell. That the Bank OF
England did not raise the rate of discount
was probably due TO a desire to keep foreign
money markets free Of disturbance during
the placing Of the Russian loan.
The home monetary situation is satis-
factory. This weeks bank statement will
be made on rising averages, and ought
therefore TO be q favorable one. Owing to
prudent treasury management and expan-
sion in the circulation, together with plen-
tiful gold imports and the strong position
Of the associated banks, there is little pros
pect Of extreme stringency in money
Enough and 10 spare seems probable
for crop and trade requirements.
though the demand from the latter
quarter may subsequently, become urgent
enough to stiffen rates and 50 affect specu.
lation. When stocks are active there is
always an attempt to manipulate money;
but we do not anticipate any natural strin-
gency for some weeks to come. Earnings
continue to show handsome gains, both net
and gross; and, altogether, the railroad
future is as bright as it well could be.
HENRY CIFWs