The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-09
BANKER CLEWS' VIEWS.
The Financial Outlook as Seen From
Wall Street

| week the adverse elements in the stock
maket have been the unsettled position Of
Northern Pacific aud New England, the
still undecided course as to the reconsUru c.
ton Of Richmond Terminal and the exports
of gold, about which, owing to the position
OF silver, the market is sensitive. These
factors have been tho main source of am
munition for the bears, who have drawn
| literally upon them. The adverse
| position Of these stocks seem to
have been reasonably discounted, aud the
| foreign exchanges have developed a ten
dency toward falling-off, IL not an early
cessation. in the shipments Of gold. On
the "buln side of the market, there has
been an improve nent in the tone. and the
conviction Strengthens that there are ele-
ments which warrant more confidence
than has been apparent for some time past.
1 This feeling has become so marked that
| commission houses are encouraging buying
| in anticipation of an early upward moves
ment, especially as holders of stocks de-
cline TO be frightened into selling by the
"bearn raids.
There is one feature of the situation the
full Importance Of which has not yet been
| fully appreciated. We refer to the condi-
/ tion OF the European markets, as revealed
| In reports which reach us only through mail
| sources, and are therefore slow in producing
their due effect on the spirit OF the market.
4
servative estimates, writing from London,
| says: There is a much better feeling in
| the American department. For nearly two
years European holders have been selling
American securities persistently; and it is
| now believed that all the stock held upon
borrowed money or by embarrassed houses
| has been disposed of. The best Informed be-
lieve that the stock carried over in the mar
| ket IL really for American account, not for
| European. II this be SO the ground Is pre-
| pared for Improvement Every one is now
satisfied that the acute stage Of the crisis is
past every one sees that the prospects are
| favorable in the United States aud the fact
that American capitalists have bought such
| immense quantities Of American stocks is
in itself calculated to encourage operators.
| Besides, money is very cheap, and ia likely
| to continue so, and there is little encourage
ment for speculation except in American
securities. Everything points, therefore,
to much more active market after awhile" "
| Private accounts from London confirm these
intimations of recovery of confidence In
| financial circles and OF the consequent
probability of renewal OF the demand for
| investments Reports from Paris, Berlin
and Vienna show that though the feeling
remains conservative there Is a marked
recovery of confidence, aud transactions In
| securities exhibit a distinct revival in the
| more substantial issues. The banks are
embarrassed with glut of idle funds and
begin to show less OF the former caution
about the way of employing them-all of
which tends to encourage business In Lon
don.
| Cheap money at the worlds money
| centers, concurrently with a gain in conf
dence and the repair of the late many weak
| spots, must act benehcially upon American
| securities. Being exempt from the political
/ uncertainties that affect such a wide range
| OF European Investments. and possessing the
| quality of growth in value conourrently
with the rapid development and the increes
| ing wealth peculiar to this country, our
stocks and bonds present attractions not
only to permanent but also to transient in
vestors which are special TO them. They
| have proved steadier than any other invest
ments since the great Barring disaster, and
| it has bean found easier to market them in
large amounts, without depressing the
price, than in the case of almost any other
class Of Investments. The fact that New
York has, within the last twenty
months, demonstrated its ability TO take
care of the largest amounts ever likely to be
| sent home, Is also strong recommendation,
and predisposes London operators to prefer
them to colonial and foreign issues. Arr
gentines, Spanish, Turkish, Portuguese,
| Egyptians, Russians, etca are no longer the
speculative favorites Of London. That mar-
ket is cautious after it'd late experiences and
! therefore prefers dealing in stocks which,
while fluctuating in price, yet possess a solid
| and constantly broadening basis of value.
At present London is bare of American
stocks, perhaps more 80 than for many
years; it is reasonable, therefore, 10 expect
that the growing ease in money and the re-
| covery of confidence will attract back to
| that center a considerable amount of the
| stocks that have been returned to us in such
| immense volume since the Barring calamity.
The western crop situation remains about
stationary. The season is late and the
| promise for wheat considerably below that
OF year ago; so that the indications, at
present, foreshadow barely an average crop;
| but the unusual surplus to b. carried over
would give us about an average supply for
export. We bear from a reliable sourcs
that all the available freight room for
wheat shipment has been taken up
for some $4,000 900 bushels, all
of which is under contract TO be forwarded
| to Europe within that period. IL this be
true-which is not unlikely-it will have
very beneficial Influence upon the financial
| situation, as it will materially lessen the
usual spring export OF gold. The
Atlantic strongly indicate the need of
our wheat. while there is no existing
| positive requirement to draw from US our
| gold at the present time; on the contrary,
there are better facil tiles for employing
| banktnR balances here than IN Europe.
It is, as vet, too carly to form any trust
| worthy judgment as to the prospects of the
| cotton crop; but such partial Indications as
are forthcoming point to the probability of
reduction of acreage. Some reports COW
ering limited area have been published.
| which show a probable reduction Of about
| 20 per cent; but they are of little value as
showing what may be expected of the cot
ton region as a whole. This is u factor to
be watched, as there can be no doubt that
another 100000 crop would be ma
tional disaster. t present, however. It
would be needlessly pessimistic to expect
repetition Of the excesses OF the last two
| years.
As all the circumstances affecting the
stock market stand to-day, we look soon for
| the beginning Of an improvement on the
late condition of affairs. and see nothing
| that on the whole should be considered dis
couraging to buying good stocks whenever
| they are raided.