The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-22
BANKER CLEWs' VIEWS.
The Financial Outlook as Seen From
Wall Street,

wall street.
New YoRK, Aug. 20.-The stock market
exhibits an unusual degree OF resisting
power Silver again touched the lowest
price on record; serious strikes are in
progress on the trunk lines at Buffalo and
elsewhere; gold exports continue in spite Of
all predictions to the contrary, and Europe
refuses to stop sending back her Ameri-
can securities. This is list of
caiamities which, in ordinary times,
would precipitate g sharp decline In the
whole market; well, as q matter OF fact,
prices have refused to yield TO such influ-
ences with remarkable stubbornness.
Values, IL is true. are lower than a few
months ago, but the decline has been grad
ual aud, judged by ordinary experience, not
at oil in proportion to circumstances. The
question is often asked "Why does not the
market yieldf' A good many operators
have been yinced that 10 should decline,
and consequently sold stocks. Instead OF
weakening the market the bears have pos
sibly strengthened ii by creating a new and, +,
for the time being, probably the only i'm
portant buying interest
But the real reason for this resistance to
lower prices 10 deeper seated than that based
on any short interest IL is based on the
confidence of the big holders Of stocks in
the future resources Of the country and its
railroads. Their holdings have been greatly,
and perhaps unwillingly, augmented by
European sales during the last six months;
still there is every indication that they are
determined to hold them for better prices.
This being the case 1t makes no difference
at the moment whether speculation is
active or dull, whether the public will buy
stocks or not. II the large owners of Hecuri-
ties are determined TO hold for better fig
ures-and their ability TO do 80 is undoubt-
edly greater than usual-it is evident that
no large amounts Of stocks will change
hands at lower prices. The next question
is, "What do they build this confidence
upon,n when the silver crisis, gold exports,
diminishing merchandise exports and In
creasing imports, strikes, low prices for
wheat, cotton and other products, decreas-
ing gross earnings, and other faots are all
presented as favorIng further drop in
stocksl The truth is, that not only have
these matters all been ia a measure dis
counted, but they are all temporary in
character. Big capitalists see more endur-
ing evidences than these on which to base
their plans; and chief Of these are the rapid
development and widespread prosperity of
the whole country. Here and there are
complaints OF overproductIon, excessive
competition, low prices, ETC., but beyond
that is the steady increase in the volume OF
trade and the encouraging decrease of busi-
ness failures compared with last year.
Clearings are steadily heavier than year
ago. Railroad earnings do not show suoh
heavy gains as in 1891, only because we are
comparing with an extraordinary year;
and net results. be 1t re-
membered, are satisfactory. Another
reason for confidence in railroad
securities is the gradual tendency TO elimi-
ate competition by means OF consultations.
This tendency ia working out results bsne-
fetal to stockholders. not only by greater
aOn hnf hU n
reckless rate wars of the past decade. Again
railroad building has been at comparative
standstill for several years past, some states
sho wing no new mileage whatever OF oon-
sequence, and others only very moderate
extensions For the Last five years the
growth OF railroads has not been at all In
proportion to the growth OF population.
AT some future time we may enter new
era of speculative railroad building; but
there are no symptoms of such at present,
and this fact Alone that population has
about grown up TO point where railroad
facilities are not in excess is another and
one Of the strongest reasons for confidence
in the future Of good railroad investments.
As already said, 1t is factors such as these
which served to resist the unfavorable de-
velopments OF the last few weeks. These
developments have probably been about
discounted for the present, and, in the abb
sence Of further surprises. look for i'm
provement later on. The silver situation
takes no one by surprise. The danger has
been long foreseen and well guarded against.
Before long we may expect wall Of dis
tress from the silver producing regions; for
at present prices there can be little IL any
profit In the mining of the product. This
OF itself Is a crumb of comfort, and there is
reason to hope for some good from the dis
cussions of the international monetary con-
ference. as the distress in India is likely to
force Great Britain into some sort Of oon-
cession at no distant date.