The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-05
BANKER CLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

Wall Street.
New York, June 3.-The tone of bust
ness in Wall street retains a part at least
of the improvement noted in our advices
of last week; but the feeling is still
vacillating Confidence is, on the whole,
gaining steadily, but cautiously and
slowly Slight advances are fol
lowed by realizing on the part
of holders of long stock and
by selling on the part of the bears" The
London market is cautious, which pro
duces Il corresponding conservatism here.
There has been some tightening or clos
ing Of accounts preparatory to summer
absences; and merchants are still driven
by the insufficiency of discount accommo-
datiOn to realize upon their securities,
which sources are just now bringing quite
an appreciate supply of stocks and bonds
upon the market,
These adverse influences, however may
be regarded as transient; and there are
others coming into play which are calcu-
lated to ncutralize their effect. In some
branches of business there is a noticeable
improvement, especially in grocery and
dry goods, which is an indication of re
turning vitality in the staple departments
of trade The returns of the railroads
also show very gratifying Improvement.
The gross earnings of some forty roads re-
crease of nearly 10 per cent, fact
which suggests the inference that the
real contraction of trade is not so great
as might be supposed from common re-
port. The real trouble seems to be less
in any actual falling off in the volume of
business than in the prevalence of a feel
ing of apprehension incident to the partial
interruption of discount accommodation
throughout the country at large and to
the failures arising from that stringency.
This fear is, of course, a serious injury to
business; for it not only abnormally
reduces prices and profits, but may easily
lead to embarraSSmentS and suspensions,
as it undoubtedly has within the last few
weeks. But there is reason to hope that
this phase of feeling has passed its eli
max. The banks seem to be gaining con-
tidence in the general soundness of com
mercial credits and, with the late large
gains in their reserves and the low rate
of interest obtainable on call loans, they
are beginning to show more disposition
to discount for their customers
1t is easy, however, to expect too much
from the banks under existing circum-
stances. They cannot yet be certain that
the European drain upon our gold has
reached its limit. The failures of which
the Foster and Dwiggins suspensions are
a type have brought to light certain ele-
ment of local speculative enterprise in the
interior WHICH IS SUGGESTIVE Oh CduLlOns
and there is a possibility that the still
existing stringency at the west and south
may bring to the surface other
like cases; while, beyond ALL there
remains the grave question as to what
may prove to be the disposition of the new
congress on the silver question. These
considerations warrant the continuance
of a conservative policy on the part of the
banks. But, at the same time, there is
no room for doubt that they now under
stand that the general commercial situa-
ton is a sound one; and having reached
that conclusion, it is reasonable to infer
that they will hencefOrth show more lib
eral regard for the wants of commercial
borrowers. Under all the circumstances,
therefore, there seems to be good reason
for expecting that the present disturbed
condition of credit will gradually subside
into a settled conservative attitude await
ing the results of the important legiSla-
tion to be undertaken by the next session
of congress; which is perhaps all that can
be expected under the broad commercial
and financial reconstruction that must
! occupy the attention of the country for
| several months to come.
| There are two other doubts which
| ought to be removed from the public mind
! and so aid in the restoration of conf
! dence. One is the apparent determination
! of President Cleveland to force action on
| the silver bill and reassemble congress in
! September next That is now the most
| probable date for action. Public opinion
has received some pretty severe object
! lessons on the silver question of late, and
! an important change of sentiment in the
west can be depended upon to aid in
repeating the Sherman law. Moreover,
| the great business centers of the west
/ are not so silver crazy as has been
| popularity supposed in the east. Another
important element of doubt has been
taken much more seriously than deserved;
that is, the tariff outlook Business
| operations extending into the future have
often been seriously curtailed through
| fear of early tariff revision Such fears
certainly not begin the tariff question until
| the silver middle is settled and
| even should it be taken up at
/ the same time as silver, it
would be late in the current year before
/ any general plan of procedure could be
agreed upon Months would be used in
taking testimony, in compiling schedules.
/ in committee conferences and even should
/ the question be cXpoditiously handled
which does not seem at all likely, several
months would probably elapse before the
new bill became law; so that it
seems utterly impossible for any
/ change in the tariff to be put
/ into force within ten or twelve months
/ 1t the business mind were relieved of
/ these unnecessary uncertainties much
would be done toward restoration of
/ confidence. There are periods when SEN
/ tIment carries prices much above their
/ intrinsic level; but this is a time when
/ distruSt has carried them as much below
their true level. This is particularly
/ true of good railroad shares which are
. bpNQnd the nprllg of PAo4.cr1 N z1 fiou