The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-07-17
BANKER oLEws' VIEWS.
The Financial Outlook AS Seen From
Wall Street.

New York, July l5.-Durlng the week,
affairs in Wall Street have continued to
struggle on against the adverse monetary
conditions and with some yielding in the
prices of securities. Now and then, the
difficulty of renewing maturing loans has
stricken holders of important lines of
stocks, and heavy realizings resulted,
which were turned to account by the
"bears" and produced fresh breaks in
quotations. One important case of this
character occurred at the beginning of
the week, which resulted in heavy fall
in the Grangers and other stocks, from
which the market has since only partial
ly recovered. The effect reached London
also and unfayorably influenced that mar
ket for the time being, and caused the
sale here of stocks held there
The trouble of Wall street houses with
respect to the money market is declining
The late large fall in prices has reduced
the amount to be borrowed against stocks,
and the withdrawal of securities from the
market for investment is having a like ef-
feet, so that the wants Of borrowers are
much more easily satisfied; while the
large shriukage in prices makes stocks
correspondingly safer as collateral The
rate of interest, though still high, is
not so costly as to raise a serious OBJ
stacle to buying The difficulties with
which the market has now to
contend are of the character that usually
follows such an extensive break as has
recently happened. Some operators have
been sold out, and numerous others are
crippled. Thus the machinery of specu-
lation is disabled, and the forces to resist
unfavorable influences are enfeebled
But outside the ranks of the spectators
there stands force of investors watch
ing for bargains, and the purchases of
that class are now becoming a very sub
stantial rallying power to the market
Not only are the prices of stocks very
exceptionally low, but the condition of
the railroads is at present unusually pros
porous, making the inducement to in
Vestors one of rare advantage.
The general condition of financial affairs
is improving, though the progress is slow.
There has been a distinct abatement of
the late apprehension, and recovery is re-
garded as less a question of fact than of
time. The obstacles give way slowly, but
still they are receding all along the line.
The most stubborn difficulty is the extra
ordinary scarcity of currency, which
keeps the reserves of the banks below the
legal minimum. There are some indica-
tions of the beginning of refiuX of cur
rency from the interior, but the amount
Of such receipts is as yet. small. There
can be no doubt that large amount of
money has gone into hoard, not only in
this locality but throughout the country.
The city savings banks also are estimated
to be Withholding some ten millions from
use in the reserves of the associated
banks. These are difficulties of a most
stubborn nature, and can only disappear
when the timid hoarders have recovered
from their insane fright
The concentration of money at Chicago
is perhaps a much more important ele-
ment is Jhis dearth of money than is gen
orally supposed The tens of thousands
who are constantly drifting to the fair
take with thea money drawn from the
banks in every part of the country; and
those streams drain the interior of cur
rency which would otherwise and its way
to this city The amount thus floating in
the hands of those visiting the fair or as
sOciated with il may easily run into the
millions; and it does not find its way
.hither because it is mainly in the pockets
of the public rather than in the vaults of
the Chicago banks. The evidence of ac-
cumulation of money at that point is plain
in the rate of Sl.75 to $500 per M. dis
count for exchange on New York, which
leaves large profit on shipping currency
thither and is having that effect This is
a condition of things which may possibly
continue as the attendance at the fair in
creases during the coming months.
Per cOntra-there is an improving ten
dency in the exchanges between New
York and other points. Philadelphia is
beginning TO reduce its large indebted
ness to US in cash. The currency sent to
the Pacific Coast banks is coming back,
and small streams are flowing in from
other sections Some of the country
banks are taking back the paper sent
here for re-discount at an earlier stage of
the crisis, and altogether, outside of our
relations with Chicago, there are appar-
ent the beginnings of a movement that
may be expected to replenish our stock
of money at an early day. The condition
of the foreign exchanges has
brought US close upon the
point at which it would pay to ship gold
hither from London. Shipments would
probably have been made this week, but
London sales of stocks on this market,
together with the unwillingness of the
Bank of England to part with gold,
seem to have deferred the movement for
the moment. Imports of the yellow metal,
however, arc regarded as q probability of
the near future. A turn in the domestic
and foreign exchanges is the one thing
needful to the revival of confidence among
the banks; aud that seems to be
in fair way to realization.
LATEST ASPECTS.
The closing symptoms of the market are
hopeful. The improving tendencies noted
above now show "a fuller development,
and both among the banks and on the
stock exchange the feeling is much more
confident than at the opening of the week.
Three movements now afford distinct
promise of important early relief-the
return of currency from the country, the
retirement of clearing house certificates,
and the importation of gold. This, with
other improvements in the prospect, is
making the bears cautious and encour-
aging the buying of stocks. We antici-
pate an improving market from this time
forward.