The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-26
BANKER CLEws' VIEWS.
The Financial Outlook, as Seen From
Wall Street.


NEW YORK. Dec. 24.-Wall street con-
tinues to labor under the pressure Of in
fuences of more than usual weight The re-
newal Of gold exports, uneasiness about the
silver situation, stringency In money and
the dangers threatening the French re-
publio-these form combination of uns ct
Ting circumstances calculated to severely
test the stability of the stock market.
AS might have been expected, the market
has shown symptoms Of yielding at its
weakest point The "industrials,S which
have never had much beyond merely
speculative support, have been freely dis
criminated against by lenders as collateral
for loans, with the result OF large realizings
on them and a fall In their prices which at
first produced a general break of the mar
ket. These issues are the sensitive spot, and
as the time approaches when they will be
exposed to searching trial from a reduction
of tariff duties, they can hardly be expected
TO resist the pressure that may be brought
TO bear upon them. This is the more prob
able from the fact that many members Of
the exchange are getting tired OF this
chronic element of disturbance and would
be glad to see 1t eliminated by better ad-
justment OF these issues to their real in
trinsic value.
The unexpected exports OF gold, at
opposite direction, has an unsettling effect
The movement is not easily explained, in
view Of the fact that, for the months OF
October and November, the exports OF
merchandise and specie exceed the COM
bined items of imports, interest due abroad,
differentiation Of imports and freight
charges, by some 81 900, which would
seem to imply that we entered December
with good balance in our favor. During
the current month, however, there has been
a material falling off 10 some of our leading
exports. For the week ending Dec. l6, our
total shipments of cotton to foreign ports
amounted to only 200 bales, against
2J3. 700 bales for the same week of 1891 /:
and. for the week preceding, we exported
from all seaboard points only 2,539. 900
bushels of grain, against ,209,0 900 bushels
last year. Concurrently with decrease of
exports, we are having an increase Of iuls
ports. those OF New York for the week
ending Dec. o being "a, l14,000 in
excess OF the corresponding figures for 1891.
Items like these will to some extent account
for the outward flow Of gold, but not fully (;
and some other causes of less evident
nature are probably at work also II is not
easy to say exactly how far the shipments
of gold are made in the ordinary course Of
the exchanges and how far as special opera
tions to procure gold for European banking
purposes. 1t is understood. however, that
one banking house here received orders this
week from Austria for 81, 900 900, to be
used by the Austrian government in pre-
pairing for the reeonstltution Of Its currency
system on the gold basis. From the appre-
hensive feeling among European hnanciers
at the position of silver, exhibited at the
Brussels conference, it is to be expected
that every favorable occasion for
drawing gold from the United States
will be turned to account The probabiIi-
ties, however, do not favor a prospect of
the current export running to any further
important lengths. For England is buying
somewhat freely of our gilt-edge invest
ments, and about 81 100000 sterling is un-
derstood to have been loaned by London to
New York through bills issued against de-
posit OF securities, which gives us that
amount of relief for sixty days, when the
local money market may be expected TO
have reached an easier condition. The ex-
treme ease OF money at London is an eIe-
ment In our favor, as 1t not only makes
these borrowing operations so much the
easier, but also tends to encourage London
purchases of our securities.
At the moment, it is not easy to Judge
howifar the serious political complications
in France may become an element of imam
cial disturbance. In the event Of revolu-
tion, which seems to be more than q mere
possibility, q shock to the bourses Of Europe
would be inevitable, and considering the
broad relations between Paris and London,
the latter city would be exposed to suffer in
sympathy with the former. In that event,
whatever might be the first effect on our
market, the later result would be TO eucour-
age the purchase of American Investments
on account OF their isolation from the
sphere of European politics. Nevertheless
the position of France constitutes Oh inn
portant influence tending to produce eau
tion in the money markets of the world at
large.
The exports of gold involve a correspond
ing relative reduction In the legal money
resources of the banks of this city, which is
the main source Of the prevailing stringency
in the loan market. AS the banks will have
to stand ready for the large interest and
dividend disbursements incident to the sea-
son, the stringency may be expected to con-
tinue at least into the new year, when the
funds thus distributed among the public at
large will have returned TO the banks for
re-employment. Relief may also be ex-
pected from influx of money from the in
terror, which usually sets In soon after Jan.
l. But whilst, for these reasons, the money
market may be trusted to take care of itself,
for the next few months, yet there is In
Wall street deep conyictiou
that the course Of both money
and investments must vitally depend upon
the action or non-action of congress relating
to silver. On this point. lea1ing men of
finance are in earnest, and regard it as an
important factor ruling the future. Could
they be sure that purchases of silver by the
government will at least be temporarily
suspended, confidence would prevail; but so
long as this remains uncertain, their attitude
will be that of caution.
Whilst the foregoing factors surround
the financial markets with some uncertainty
which is unfavorable to the value of securi-
ties. yet the general range Of conditions in
trinsic TO investments is strong and healthy,
which forms a wholesome buttress against
other disturbing influences.
TAPERINo FINGERS TIE FAD.