The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-01-25
BANKER CLEws. VIEWS.
The Financial Outlook as Seen from
Wall Street.

NEW YoRK. Jan. 2S.-During the past
week there has been what may be considered
healthy break in the stock market. A
combination Of influences has favored the
disposition OF the "bears" to make a demon
stration in force against the "bull" side.
The situation OF our relations with Chile has
been made lurId with war paint, and the
pens OF rumor.mongers have been dipped In
ensaAguined ink, as accompaniments OF sem
sational assaults on the "bulln position
simultaneously the disagreement between
MIR. Gould and the Western Traffic
Association was distorted and ex>
aggerated into shapes calculated to
excite apprehensions Of widespread
freight war; and what seegued to give color
10 these distortions was the fact that Mr..
Gould himself had nothing TO say calculated
TO allay such fears. The still unsettled diff
ferences as to apportionment of production
between the anthracite corporations was
also made to play an influential part in the
tactics of attack The fact, also, that
Europe has recently sold a considerable
amount OF stocks on this market, with the
effect Of stiffeniug foreign exchange aud
ton Of imports OF gold. has.
been made!to perform service In the ''bearn
assault There was enough material in this
combination Of circumstances TO back a
reasonable extent OF selling, and 1t was
skillfully used by the "bearn leaders. fol-
lowed by the whole rank and hle A vigor-
GUS demonstration made on Tuesday re-
shifted in a decline of 115 to 3 points
throughout the list. This success, however.
developed an excess OF ''short" sales, and
the discovery of the dangerous oversold
condition of the market caused, on the fol-
lowing day, a rally to about the range of
prices from which the decline started.
This movement has served a useful pur-
pose. As trial Of force between the two
sides, il has demonstrated that the ''bullsn
have not yet lost all their advantage As a
test of confidence IL shows that there are
buyers ready to take whatever stock the
bear" traders may throw at them at tempt
ing prices. AS asymptom of the general
spirit OF the market. it shows the perma-
nency OF the ''bulln element, a disposition TO
continue to hold rather than weariness of
holding and preponderant expectation of
boom later on. The result OF Tuesdays
fight has therefore been distinct gain
for the market, as it has increased the
activity. One satisfactory sign Of the sell -
ing was that there was some parting with
long stock by prudent holders, who saw a
chance for taking profit and getting fn
again at lower prices-the course we recon-
mended in our last advices. Indeed, one
Aoobulo VI tuS ludTk6u IN Jno
moderation Of holders and the absence Of
wild buying and Of overpersistent holding
in sangutne expectation extraordinary
prices. We do say that ID 10 beyond the
range Of possibility that at some later
stage, a wave of speculative excitement
may carry prices much higher than they
are at present; but it Is plain that no such
initiation is at present in sight; and the
surest and safest way to success, for
60 ft1
up large holdings and stick to him, but 70
take profits on moderate advances and buy
only on the drops. The course of the thar
ket for the next few months will very
largely depend upon the maintenance of
of this attitude of moderation. As con-
ditions now stand, there is nothing co war
rant extreme advances, and attempts to
force prices largely beyond intrinsic values
are not likely to pay those who participate
in them, but may easily have the effect OF
bringing about collapse and disappointment
which would set the market back to the
condition OF stagnancy from which it has
just emerged. The situation, however, has
all the elements necessary TO a healthful
tone and frequent fluctuations; and il not
spoiled by the excesses of oversanguine
"bul " 1t affords promise Of the sustained
activity which Is most profitable to all par
ties.
outside the market, there has been no i'm
portant change during the week. The
foreign markets have afforded no support
to New York. On the contrary, they have
uuloaded on this center; but, with the pres
ent abundant means here for carrying
stocks, those realizings have had no serious
effect 1t now appears that London's long
waiting for 1.-THE moving of the waters" at
New York was not with a view 20 the re-
rffnn of craCulatiOp hut f1N
rid Of It's stocks. 1t will not be surprising II
they are bought back at higher prices at a
later date. Wall street is perhaps about
evenly divided as to the probability Of the
Chilean fmbroglio developing into war. In
Tuesdays bear" performance, 1t was as
sumed not only that war is probable but also
that the war would be a great national
disaster. To the latter sHpposition Wall
street at least sees another SIDE War could
have no bad effect on the national credits,
for the Losses and costs would have to be
paid by Chile, and II they proved larger
than our fractions little neighbUr was able
to pay they would still be so small In pro-
portion to our resources as to produce no
effect upon the financial status Of the gov
ernment and would only all the more strik-
iugly exhibit the power and greatness of
the republic. The national exhilaration
and the large naval and military expendi-
lures would, however, have a direct ten-
dency to develop activity in certain branches
of business and the effect ON Wall street
would be to stimulate speculation. Some
surprise Is felt in view Of the unpre-
cedented amount of cur current ex-
ports and the relative moderation of
our imports, that gold should not be coming
In from Europe. 1t IL not sufficiently con-
sidered that this is season Of the year when
a great deal of liquidation of our foreign
obligations is always in process, which all
most invariably turns the foreign exchanges
against us and is liable to produce exports
of gold. Currency is still accommodating in
large amounts in the New York banks, and
no doubt is entertained anywhere of money
remaining abundant here uuth next harvest.
The distresses Of Russia are 80 Jemperin3
the ambitions Of that power that, for the
time being, there is complete cessation OF
war symptoms in Europe and as the weak
ening effect on Russia OF her great famine
is likely to keep her pacific for the next two
or three years, it is not improbable that we
may soon witness a revival of confidence
across the Atlantic.
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