The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-05-23
BANKER CLBWs' VIEWS.
The Financial Outlook as Seen From
Wall Street.

w all street.
NEW York, May 2l.-During the past
week business at the stock exchange has
still been confinei to the dealings Of pro-
fessional operators. The shear" element
has been out in force, led by strong aud skill
ful commanders. Their attacks have been
mainly directed to exposed specialties,
through battering which they have hoped
TO reach the general list; they havc con-
Quoted their operations with skill and
vigor, and their success has perhaps
been proportioned to their effort
But the confidence of holders
OF dividend properties. whether
on this market or In London, remains Writ
ually unshaken. The stocks mostly as
sailed have been Union Pacific and North
ern Pacific; the former, after having been
advanced through purchases connected with
the election, being naturally weak and un-
supported, while the latter was legitimately
weak on account Of the falling Off in earn
ings aud the passing Of dividend on Thurs
day. The failure OF the Richmond Tsrmi-
nal reorganization plan has also been an
adverse element; as also some decrease in
the current earnings of railroads, owing to
the bad condition Of western wagon roads
having interrupted the forwarding Of
produce.
Beyond these passing weaknesses in the
she situation, the "bearsn have theory
that prices are too high as compared with
year ago, and on the strength OF that,
their aim is to break their way into the
general list through forcing passage at
these weak and feebly defended spots. But
is that theory tenable? Is the situation of
to-day at all comparable to that of year
agos Within tho twelve months there has
been vast recovery from the world wide
effects or the Barring shock, and tho i'm
provement Is about as manifest In the
European markets as on this side OF the
Atlantic. This country ia now thriving on
the benefits OF unprecedented crops, which
year ago were but dimly anticipated and
not realized At this date Of 1891. all the
money markets Of Europe were IN state
Of high tension, and apprehension was
felt on every hand; the Bank OF England
rate of discount was per cent. gold ship
ments from this port were Of unprecedented
volume, the May export amounting to $685.
OOO,OOOi the reserves OF the New York
banks were showing a surplus of $500, 900
and call money was bringing 5 ppr cent.
there was little demand for Investment
securities and speculation was absolutely
dormant; everywhere confidence was at "A
low ebb, and distrust arrested every branch
OF enterprise. In short, everywhere nnan-
cial affairs were at the lowest point Of de-
preston in one Of those periods of reaction
that come upon the world within every ten
years, and stagnancy, contraction and
liquidation pervaded the two commercial
continents.
Where is the sense In comparing the con-
ditions of to-day with those then existngl
The recovery within the twelve months in-
terval has been remarkable. Formerly, tho
recuperations following these general great
reactions was gradual and slow. Under the
changed conditions Of modern bus mss, IL
has become surprisingly rapid. Interna-
tional commercial and financial relations
have become adjusssd to the lightning
methods OF communication; a situation,
therefore, is more quickly ascsrtained, and
consequently more readily aud easily dealt
with. In short. the world has become one
vast counting room, ia which general dlsor-
Ranization can be straig ghtenedout in as many
weeks or months as 1t formerly required
months OF years. The significance OF this
change to the present situation is that the
world has already gained a point of re-
covery from the great breakdown initiated
by the Barings' suspension which, under
former conditions, would not have been
reached until years later. We fail to keep
pace in our judgments with the modern
quicker pace OF events aud therefore the
degree OF recovery already attained from
the breakup of l890-'9l is very imperfeotly
appreciated. This tardiness of comprehen-
sion has not, however. prevented the facts
from finding expression in market values
but because some do not understand the
causes Of the Improvement they conclude
that the rise in values Is premature.
But nevertheless, although the "bearsn
may DO acting upon a false theory of the
situation, it is not 20 be denied that they
have lately had the upper hand; and their
success must be respected. A vigorous
bear" campaign, however, usually cul-
inmates in an oversold market, and If the
overselling is carried to excess, naturally
an upward reaction follows. The present
danger Of large short sales and the hope OF
holders lie in the possibility of just such an
OVERRIDING. Northern Pacific preferred hos
fallen heavily within tho last week,
which decline should be considered
ample for any changes that We occurred
in its Intrinsic position; aud the quick ad-
vance that followed the passing Of its divi-
dend is some evidence that the "bearsn
thought it prudent to call halt In their
attack. The current terms for borrowing
wide range of stocks indicate an unusu-
ally large ''short" interest outstanding.
From present symptoms, therefore. it Is not
impossible that the "bearsn may soon find
it wise to moderate their attacks. When
that stage has been reached the ether side
will have chance of showing what sur
prises IL has In reserve, and we advise mod>
GRAFTON in buying until the next drift in the
tide plainly shows itself. Drily in and out
operations for the coming weak will prove
the safest and most profitable.