The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-26
BANKER oLEws' VIEWS.
The Financial Outlook as Seen from
Wall Street.

New YORK, June 24.-Wau street re-
mains unsettled. The action Of the Asso-
ciated Banks, in authorizing the issue Of
Clearing House certificates, was new
turn In the financial kaleidoscope. IL has
introduced some now aspects in affairs
but to the strictly Wall street interests
1t has not yet brought any distinct stimu-
lus or benefit.
The first effect of this change has been
TO transfer funds that have been loaned
to the stock exchange interests TO mer-
camille and industrial borrowers and to
needy banks in the interior. Naturally.
this changing of loans has produced a
sharp stringency in "Call" and "time'
money, which has precluded any benefit
in the form Of a rise in securities But
neither has the change produced any in
continent selling nor any general decline
III values; which shows that the net eff
feet of the relief devised by the banks
has been to materially strengthen the
basis Of confidence in the stock market.
The main object of lhe banks was to
check the general disruption Of credit
! that was rapidly carrying the whole
country towards serious condition.
| That, the banks sought to effect through
| providing an elasticity in loans beyond
what Is permitted under the restraints
| of the national banking laws. That step
| being taken, there was no longer any real
| danger It's first effects are an Increase
| of local discounts, and an extension Of re-
| lief to the banking interests of the inte-
rior, whose inability to lend had largely
| aggravated the stringency at this centre.
| Those results are now In process of reali-
| Zation. There has also been a distinct
relief among local merchants failures are
| less frcquont and the outflow of curren-
| cy to the interior banks Is abating The
| remedy in the commercial community OF
| course could not bo perfect at this
! early stage; 1t Is, however,
| progressing steadily, and will soon show
o more general and more thorough relief.
| In the meantime, we do not observe any
| marked recovery In the spirit or activity
of the commercial markets. The condi-
| tion of these markets Is peculiar There
| is no great lack of demand from retail
| consumers; and jobbers could sell any
| quantity Of goods on three months; but
they refuse to do so until they find freer
market for the paper that would thus be
created The result is a baroness Of stocks
| among retailers; which means the reser-
vation of demand that, at more adj
vanced stage Of the recovery Of confidence,
is likely to break out into "A really active
state Of trade. In some of the markets
especially, merchandise Is held at a liberal
discount for cash, which is even bringing
In foreign buyers and in this way we are
re-exporting goods that have been import
cd for our own consumption, which
amounts to real though circuitouA
method Of relief.
These facts are cited to show that the
commercial interests are going through a
natural and safe progress Of readiust.
ment, which in a short time may be ex-
pected to restore steadiness TO the money
market and afford the Stock Exchange
houses opportunity for getting their usua
| measure of accommodation from the
banks. Wall street must be expected tc
wait for its turn until that outcome
arrives II is no light cause for con
fidenCe that, during this interval, Wal
street shows such good evidence Of ifs
ability TO hold its own. Fortunately, tht
great transportation interest shows little
symptom of suffering from'the causes that
have so deranged first the Investment
markets and now the commercial inter
ests. The earnings Of the railroads ex.
hibit liberal gains in spite of the inter
ruptions In large branches Of trade
which not only speaks well for the iinan
cial condition of the roads, but is also
evidence that the condition of business
on the whole, is not so bad as some pessi
mistic observers would have us believe.
| The condition Of the money market in
| Cludes some very complex elements. The
| arrangement Of domestic credits is wei
enough understood and It will be gener
| ally conceded that, in the course of few
weeks the process Of repair started by
| the banks, may be trusted to work out d
settled feeling and establish freer move
ment In loans. But 1t is not so easy TO es
innate what may be the outcome of oul
relations with the foreign money markets
| With the present high rates for money al
| this centre, 1t is natural that foreign
! funds should seek employment here
| Such loans are being made, and certain
| amount of relief is coming from that
source. Even half million Of gold has
| been shipped hither from England from
| those operations, and in some quarters II
| has been hence inferred that additional
| imports Of specie win soon follow
! The latest advices respecting domestic
and foreign crops are favorable TO the fu
ture course Of our exchanges The ex.
tensive failure of fodder crops IN Great
Britain and on the continent will naturally
augment the demand for such surplus as
we may have Of corn and oats II seems
reasonably certain that there will be d
more or less serious shortage Of wheat
across the Atlantic which, with the pros
pect of at least an average surplus of that
cereal on this side, suggests probability
of better prices for it, The imports OF
merchandise may be expected TO decline
materially; and, with the probability of
free exports of produce, we have there
fore a fair prospect of healthier foreign
trade balance being soon established
wAYoRoss NEWS WAITS.