The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-14
BANKER CLEws' VIE VS..
The Financial Outloos IS Seen From
Wall Street.

NEW YORK. Nov. 12-Wall street mas
| devoted the past week to the election and
I its results. The sweeping majoTities for the
! outs are naturally accepted as investing
this election with much more than ordinary
/ Importance; for they not only call for i'm
| portant changes Ia the commercial policy
| OF the country, but by reason OF their
! extraordinary numerical strength. convey 81
! much the stronger probability that such
| cnsnges may prove irrsVersibls for 8 pro-
/ longed period at least 10 any event. the
change in the presidency and IN both
| houses OF congress leaves no room for doubt
| that, within at most two years, our manu-
/ facJures Will enter upon radically changed
relations with those of foreign countries.
Ihls result may have been expected in
| some quarters, and by 10 st it must have
/ been regarded as more r less possible, and
1 that fact prevents the new prospect from
! being an unqualified surprise; but. when
the posi- billy has become a fixed certain V,
! men look at the new future with more
| seriousness, and every one fess that an
entirely new set of business conditions con-
fronts them. Owing 10 the differences in
party and economic staudpoiuts from which
| tne new situation is viewed, there is much
diherence In opinion as to the outcome aud
the DRIFT OF affairs during the interim pre-
ceding the promised new legislation. and
TINS conflict Of view begets some confusion
ana uncertainty. As usual, under the I'm
certalntles attending new set of conditions
w all street Is disposed 70 discount the worst
probabliiti es, but also counts upon a second
operation based on the reaction that comes
Jater from appreciation Of the favorable
factors IN the problem. Very naturally
therefore, there was considerable selling of
stocks on Tuesday and general moderate
decline In prices. For obvious reasons the
discrimination was most marked against the
M Httv,Is F-lN' ~
tlon OF duties on the products of those
corporations will expose them 20 direct
foreign competition against which their
shield or monopoly will be- unavailng: and
the present large profits of these instltu-
tlons can hardly fail to be sooner
or later very seriously reduced. Dur
ing recent large operations in these
specialties, considerable amounts have been
shifted upon the class Of small holders
which makes them now the more exposed
20 the attacks of the bears" The coal
stocks have also suffered, but not to the
same extent as the industries. In respect
TO these, the question is mooted-what
would be the effect of the repeal of the exs
lstlng duty OF 70 cents per ton on bitumin-
GUS coal! and some doubt is felt whether the
new, complexion of politics may not affect
the dlspos tion of the courts on proceedings
pending against Reading. Railroad stocks
have suffered rather from sympathy with
the selling OF the specialties re.
terred to than from any sup
position That the new prospect threatens
them. Although, on so large a question, it
is premature as yet to form any definite
conclusions, yet IL comes up among the first
thoughts that the reduction of wages and
the cheaping of iron, steel and fuel, which
may be expected from lower scale Of tariff
duties, should largely economic the operet-
| ing and construction work of the railroads
Ea -
roads, which for the last four years has been
! sharply curtalled, and Is likely co continue
! so until the tariff is actually reduced.
These are the few first thoughts expressed
In Wall street operations in the few DAYS
Immediately following the election. The
new situation introduced is however a very
| wide one. IL means a coming change in
the position and prospective value OF nearly
| everything bought and sold within our do
| main, and first thoughts therefore afford a
/ very imperfect indication of what the after
| thoughts may be. Radical changes are i'm
| pending In every branch of business and
national reconstruction is before us. The
next two years therefore must be period
| OF anxiety to some, but perhaps equally of
| hope TO others. The misfortune is chat
manufacturers msy have to.wait for at least
/ eighteen months unless an early sDecial
| session of the new congress is called, which
! does not seem improbable) before they can
] huOH MudL dEb 10 DO the CODQlLiOlg OF tariff
! under which they will have to conduct their
business, which ia of course calculated to
create Generalization. On the other hand
! there must be. on wide range of pro ducts
| a disposition to defer purchases until the
| lower duties and lower prices take effect
| Manufacturers, however, have generally
one certainty before them-that duties win
be reduced; and it is therefore to be- ex-
! pected that they will use every endeavor to
! anticipate the future conditions by pro-
| ducing at reduced costs and thereby en-
| couraging consumption. The situation will
have its encouragements as we'll as its dis
| couragements. Consumers of imported ra "
materials will have the near prospect Of get
| ting them free OF duty, and openings for
extending our export trade NAV be expected
to throw open to us important new markets
| for wide range of manufactured products
Still, balancing in the most favorable sense
the disappointmentg and approximations of
one class with the hopeful expectations of
| another, and even conceding that the final
outcome OF the great change may prove as
beneficial as its promoters predict, it is not
to be concealed that the best we can rea-
sonably expect for the next eighteen lnonths
| or two years, is unusual caution in every
branch Of business, the deferment OF new
enterprises. the cessation of extending in
dustrlal plant, continuous pressure in
prices and hand-to-mouth condition of
business. 1t is to be remembered, however,
that these conditions will be mainly con-
fined to the industrial portion Of our
populations the agricultural half in the
meantime will reap the benefits of two sue
cessive years Of great harvests and, it is to
be inferred from their votes, will be ex-
hilirated by the prospect Of cheaper living
and cheaper labor.
Under all the circumstances, while we
see nothing in the new situation to encour-
age active buying of stocks; neither, on the
other hand, do we advise any haste to
make sacrifices in realizing. The com
mercial conditions remain healthy, the
railroads are doing prosperous business,
the foreign markets are still buying our
securities. and the money market, though
still active, affords all required facilities
for carrying stocks.