The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-10-17
BANKER oLEws' VIEWS.
The Financial Outlook as Seen From
Wall street.


Wall street.
NEW YORK, Oct. l5.-Buslness on the
stock exchange was of course much inter
rupted by the Columbus celebration. Hence
there was little opportunity for any real
display of tendencies. The prevailing tone
OF the market was steadiness; and. IL there
was no general movement for a rise, there
was certainly no loss OF confidence The
only feature of the week was the sharp ad-
vance IN industrials. circumstances favorinR
manipulation in this quarter. The amount
of securities OF these concerns is relatively
small; consequently they are easily con-
trolled and worked up or down at the will
OF the insiders. Many Of them, TOO. are
practically monopolies, or 30 nearly 80 as 10
enable them to make large profits. Big
dividends and comparatively low prices
are supposed TO be an irresistible
attraction to the average speculator and
investor, and not a few of the original hold
ers OF industrials, having stock for sale,
appear 10 be taking advantage OF such con
dltions 60 market surplus stock. Time,
however, has yet to prove the stability OF
Investments which are carrying such a
copius oamount Of water; often earning
profits 40 unusual that they may not he
maintained. and many OF them managed
under such secretive methods as 10 impair
instead Of inviting confidence. The out
LOOK Ia for considerable speculative activity
however, in this department OF the stock
exchange; and, II such proves 10 be the
case, quick, shrewd operators are likely 10
make profitable turns. AS permanent in-
Vestnents, however, they are not quite yet
entitled to the credit which thay may de-
serve when managers take the public into
closer confidence aud adopt strioter finan-
cial methods
As a class, no Investments are now more
worthy OF attention than railroad stocks
and bonds. In many important respects
the railroad interests Of the country are In
sounder condition than ever before. While
transportation and travel 10 unusually
heavy, exceeding last years extraordinary
results and likely 20 continue with The
stimulus OF the Chicago exposition IN pros
pect, rates are well maintained aud hostility
between the great system has been reduced 70
a minimum. The result 10 heavy gross
earnings, enabling liberal expsnditurei for
improvements which ought soon
to permit Of greater economy in
operating expenses and consequently batter
net results than heretofore. Another im-
portant factor, from the purely railroad
point OF view. is the wholesome restraint Of
competition aud the restricted building OF
new lines. The best authorities estimate
that not more than 4, 900 miles OF new road
will be constructed in 1892, which will be
the smallest total OF any year since 1885.
Considering the rapid increase OF popuIa-
tion and traffic, 1t certainly looks az IL rail-
road development was not keeping pnca
with the natural growth OF the ooun5ry.
Another important factor favoring the
stock market is the sound condition of
business. The volume OF trade is large,
failures are few, collections good, specula-
tion comparatively quiet, prices low, labor
well employed. wages high. ia short the
masses ara prosperous. In all the textile
industries, for instance trade has bean
particularly good, and many cotton, wool
aud silk mills have larger number OF ad-
vance orders on hand than ever before. A
further illustration OF activity in CON
sump6ive channels is the continued heavy
imports, not only Of dry goods, but OF
necessities and luxuries OF all sorts the In
creased revenue from which has proved a
boon to our nearly depleted treasury.
There 10 now little fear but that
Secretary Foster will lie able TO meet all
likely obligations on gold basis. The
money market Is working closer and call
money may be subjected to sharp fiuctu-
ations; but there is no lack OF time money
available at reasonable rates. Foreign ex-
change displays a weaker tendency, due to
larger offerings OF commercial bills; and
London, IL may DO noted, shows a more
favorable disposition to American stocks
This, however, is more likely to result in
lessened selling than in renewed large buy
ing. unless business and financial conditions
in Europe undergo an early Improvement
The crop situation is favorable, In that
the diminished yield OF wheat, corn aud
cotton was desirable. considering tho large
supplies carried over and the prospective
diminished foreign demand for cotton and
wheat. Another heavy yield OF these three
products would have done more injury,
through overproductioE and low prices,
than any abundance could have compen.
sated for. The approach OF the elections
may tend to restrict business: but this OBJ
struction is proving notably less than In
former presidential campaigns.