The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-06-06
BANKER CLEws' VIEWS.
The Financial Outlook as Seen From
Wan Street.

NEW YORK. June 4.-During the past
week the bears seemed to take a new
lease of power, and for a time maintained
sscendenoy. Early In the week London
became free seller on this market, as some
suppose, partly on "short" account, and
principally on Louisville and Nashville,
about whose financial condition foreign
holders are reported to have received ad-
vance information. This opened a new
weak spot, to which the bears" gave
prompt attention. A temporary injunction
issued in New Jersey against Reading also
| caused come selling of that stock, which,
however, was found to be well supported.
The professional traders paid s7me special
attention also to Rock Island and Burling-
ton and Quincy, probably to offset the
fact of both stocks being very largely
oversold. These, however, were incl
dents of no great intrinsic im-
po-tance, and the matter Of chief interest
in connection with them was that the
bulls" should have permitted them TO have
the effect they had upon the tone Of, The
market. On Thursday, however, a, change
came over the spirit of the dream OF the
"beHrs" The leading seller seemed to have
concluded that the ''short" interest was
growing quite dangerously large. and hence
| there was general buying movement to
cover those contracts. News of favor.
uDl6 Cu6uke III bu6 weather .LuluukuOuE JD6
great crop belt was accepted as q warning
against being caught short, ana that being
the one condition necessary to give courage
to the bulls" the market stiffened at once
and took an upward turn. Should the
weather reports continue to be of the same
tenor, the market is likely to respond IN the
form Of better prices.
Sale OF stock for London account during
the first half OF the week strengthened the
fOraiCn axpbanna Tt1orhaf1 Gard 10 haf
source of demand for bills must be added
the usual requirements for the June settle
ments of balances. These facts have led to
the renewal of moderate exports Of gold;
but that, being "a ordinary incident Of the
June exchanges, has already been antici-
pated as TO its effectupon ths market. With
a surplus of SPA, 500, 900 OF bank reserves
against $780, 900 year ago, the export of
few millions of gold can be a matter of
lit 10 Importance to the local money market;
while by increasing still further the extraor-,
binary plethora of money at london and
on the continent. its ultimate effect can only
be favorable to reviving the foreign demand
for our securities. t"'
The supreme condition affectirg the stock
market is the crop prospect as influenced by
the current weather, and that factor is now
less uncertain than it was q week ago. Bx-
captions as to the wheat crop are improy-
ing, but are still strictly moderate. AT the
moment it seems probable that in some
sections the crop may be poor, while in
most it may prove fair, and in a few really
good still, these probabilities may easily
change within a few days for better or for
worse. The June report of the department.
OF agriculture will be Forthcoming In "a few
days, which will afford more definite data
than anything yet forthcoming as to the
prospects of winter wheat. Tho prospects
OF spring wheat and Of corn must remain in
the dark until those crops have reached the
earlier stages of development. But accept
ing the most moderate current expectations
as to the wheat crop. the heavy surplus left
over from last year may be expected to
bring up the exportable supply TO about
average dimensions. That cannot yet be
said Of the corn crop, aud that is the fact
which weighs most heavily on the stock
market
The general trade Of this country, except
ing the cotton states aud California, may
be regarded as reasonably prosperous The
increase of railroad earnings shows that the
volume OF products moved exceeds all prec-
edent Merchanting, though conducted
with conservatism and perhaps generally on
moderate profits, is yet active. In certain
trade0 there is an undoubted over supply
Of products, notably so in the iron trade,
woolen manufacturers and cotton goods
In the two former the trouble Is perhaps
principally due to the tariff having drawn
out increased in Vestments Ia mills; but to
the public at large there is an indirect
benefit IN cheap goods, and to merchants
the advantage of increased sales,
whilst the manufacturers - the par
ties responsible for the OVERRIDING
must submit to the inevitable process Of
wedding out those least fitted to survive the
ordeal OF competition. In all this, however,
the suffering is confined to one restricted
class, while all others are indirectly bene-
flied. The cheapness Of iron is creating an
unequaled consumption Of that staple, and
the railroads are benefiting through being
able to make liberal improvements at much
below the usual rate of cost.
Taking the situation aud the prospects as
whole, we construe them as fairly favor
able to securities but at the moment there
are certain undeveloped factors which tend
to hold conservative toperstors In check;
and we therefore, for thp present, counsel
buying on drops and realizing Upon moder-
ate profits. ~