The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-11-09
CLEws' VIEWS.
What a Wall Street Banker Says
About Financial Affairs

About Financial Affairs.
New YORK, Nov. s.-The course Of bus
insss at the stock exchange for the past
week calls for little comment beyond noting
that il has been on a par. as respects dull
ness and stsgnsncy, with the several weeks
next preceding. At one end of the rope
have been the room bears and at the other
the room bulls; and their mutual tugging
mas shown only gains for the down side,
while the ordinary outside operators, great
and small, have listlessly watched the per-
fornanee. Some OF the dizziness may be
attributed to the election excitement aud TO
the holiday attending it; but it would be
difficult to make the market more hfeleSs
than it has been of late.
Last weeks advance in the Bank Of Eng
land rate and the recent report that Russia
had prohibited the export Of all cereals
have had no percsptible effect. The latte'
rumor would have beea important
trne:n but it has received neither confiru:a-
zion nor denial, and may therefore be re-
gsrded as having been based upon antiopa-
ton. The advance of the Bank of England
rate appears to have stiffened the money
rate on the continental bourses, and as that
measure was doubtless Intended &c divert
the westward drain Of gold
from London TO the Euro
pean centres. it may be expec ed that the
German Reichsbank and possibly even the
Rank # France will soon folDw the ex-
ample Of the Bank of England as a meas
une of defense, In which case the latter iu-
stitution may find it necessary TO further
advance it's rate at no distant day. Londcn
finacce IS subjected to a nsw aud by no
means Insignificant strain By tae out break
of what appears to be a serious form of
II, fvn Ill l.sa oi~ -
congress, the declaration OF martial
law, and the creation OF
dictatorship mean revolution in its gravest
form and the reports represent this state of
things as being by no means confined 20 Rio
but general throughout the country. This
is another & eat South American disaster
added to the arrangements still remaining
from the Argentine collapse of year ago,
all Of which is calculated to affect unfavor-
ably wide range of securities held in
Europe. To this must be added the disturb
ance Of bank reserves in Western Europe
likely to arise from the remittance to Rus
sis Of the proceeds of the recent loan nego-
tiated in Paris Much OF this money would,
under ordinary circumstances. have re-
NAMED on the confident to be drawn
against for Russian disbursements outside
the cars territory but the distress and the
financial exigency arising from the Russian
crop failure are calculated TO create a use
at home for much of the proceeds Of the
loan that would have been otherwise used.
Under these circumstances, the great banks
Of Europe are likely to clutch their gold
with special tenacity,-a condition of
things anything but conducive to confidence
in securities and especially those of the
speculative class. So far, thsse facts
and prospects have had no effect upon
American securities in the foreign markets.
On the contrary, special preference is
shown to them on account of their being
more than any other investments outside
the sphere OF these influences. So far, this
exemption is very gratifying, but it must
be remembered that in the event of any
acute pressure in the European markets, our
securities would be especially liable 20 be
sold from the fact that they could be
realized upon with less loss than in the case
Of most others. At the moment, however,
Americans rank among the strongest in-
vestments in Europe and, for much of the
time, are firmer than at New York. Taking
the foreign situation as q whole, however,
1t Is more suggestive Of future trouble than
of support to this market; aud this is a
factor which encourages the hesitancy now
evident among our leading operators.
Among the domestic factors which are at
the moment acting unfavorably on the
market, are the comparatively numeI Gus new
issues of bonds for Improvement purposes
and for equipment; which while their OBJ
ject may be entirely justifiabie, yet carry
an unfavorable implication as to the finan-
cial condition of TIE companies issuing
them-it having been the usage, with we'll
to-do companies, to provide for such re-
quirements out of surplus earnings
In view Of the various factors above re-
ferred TO, coming as they do upon market
which has been doomed up to an advance
averaging eleven points on the active stocks,
1t is not surprisiug that there should be a
disposition to halt and allow these influences
to have the effect to which their weight en-
titles them. No doubt that effect would
have come ere this had it not bsen for the
extraordinary influences that have operated
IN the opposite direction. A more legitimate
and positive bull" argument could not
exist than the unprecedented magnitude of
our crops, the fair prices they are destined
TO realize, the overwhelming railroad traf~
TIC which they must create, and Che general
national prosperity they must produce
Tue striking change in the course of our
foreign commerce, due to this cause, is q
very important factor In favor of the
market and will be felt later on. Our
Imports for September, owing to the
large supplies imported in that
month of 1890 10 anticipation of the new
tarif-show a decrease Of Sl4, 400, 900 com-
pared with last year. while in consequence
OF the shipments from the new crops the
exports show an increase of l4,000, 600.
ms is the beginning OF course of the
foreign exchanges which is destined to con-
TIME to bring gold to New York and create
an ease IL money which can hardly fail to
produce favorable results in stock exchange
values later on. For the moment, how
ever, the attitude of waiting BELTS the
market, and spectators must be Statistic
with the profits that come from daily quick
turns.