The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-04-13
BANKER cLEWS VIE VS.
On the Financial situation in Wall
Street

On the Financial situation in Wall
Street.
NEW YORK, April l2-During the past
week Wall street has sprung into new life
aud activity. This welcome change is due
TO several causes. 1t is the first clear and
decided evidence that public confidence has
recovered the shock impaired by the crisis
Of last fall. And in that sense it means
what many have suspected-that the dam
age inflicted by the panic was due more to
fright than TO positive injury or widespread
disaster. The mischief was more in the
nature OF arrangement OF the machinery
of finance than in any general IN
soundness OF business at large or
any such extensive insolvency as the
Baring's suspension revealed among the
European credit establishments associated
with South American interests. The whole
trouble lay in a comparatively temporary
overcreation of railroad issues and violent
hitch in our currency arrangements, while
the general trade Of the country was IN
sound and wholesome condition. Careful
observers have all along felt that when the
public at large came to understand these
actual limitations OF the bearings of the
crisis there would be prompt and effective
recovery Of confidence and a general return
to normal conditions All symptoms unite
to indicate that we have now reached
that turning point
The shelving Of free coinage OF silver, the
rejection OF the southern elections bill, the
settlement for time at least OF the tariff
agitation, the cessation of exorbitant APP
propriations-the disposal Of these unset
Ting issues is great relief to the business
of the country and an important contrfbu-
ton to confidence At the same time, the dan
ger Of monetary stringency has been greatly
nitigated; for. on the one hand, the largely
increase ed disbursements of the govern
ment will neceSsitate distribution of the
immense cash balance hitherto held by the
treasury, and, on the other, the operation Of
the silver law will add S6C, 10000 per year
to the active circulation, il addition TO the
increase arising from our regular produc-
tion of gold. 1t is also factor OF no small
Importance that, in the western states gen.
orally, the granger hostility to the railroads
shows a marked abatement Of its reckless
hostility, and in almost every case bills of
that character have been defeated. A still
more direct stimulant comes from the hope
full agricultural prospects.
While the concurrence of the foregoing
favorable conditions is calculated to develop
a much more confident feeling as TO the
future of business, it is beyond question that
the current market value of securities is
much below the average. 1t is true that the
present gross earnings of the railroads show
but moderate gains on those of last year !;
yet it is TO be remembered that the traffic of
1890 was unusually large. 1t argues we'll
for the general trade OF the country that, in
spite of the decrease in last years wheat and
corn crops, the earnings should show any
increase whatever on those Of 1890. 1t seems,
therefore, to be reasonable assumption that
the current business of the roads would
warrant about an average range OF prices
for railroad securities; and vet their present
value falls very much below the average.
In view of the factors above reviewed,
there appears to be a solid basis for an APP
probation in the value of securities from
this time forward and the probabilities of
the situation favor steady buying move
ment extending up to the fall months /;
especially should the crop prospects con-
tinue to develop as satisfactorily as hitherto.
The exports of gold still continue. Until
the end of the week the shipments were of a
special nature; but on Friday the rates of
exchange advanced fully up to the specie
shipping point, in consequence of sales of
securities for London account. The total
amount of gold shipped and engaged for
shipment during the week has been close
upon $4,000 900. The banks gained about
81 900, 900 currency on their exchanges with
the sub-treasury, and lost 100000 net on
their transactions with the interior.