The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-07
BANKER oLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street,


New York, Aug. Sat last Wall
street begins to see light. During
the week new factors have entered
into the situation of character calcu-
lated to afford large and permanent re-
lief to suffering interests. The misfor-
tunes that have befallen the Chicago
spectators have proved to be a benefit to
the whole country. Their Withholding of
grain and other kinds of produce from
the usual course of export for several
months was largely the cause of the
heavy drain of gold that introduced the
existing troubles. The stringency which
they so largely helped to create has at
last compelled them to realize at ruinous
losses, and their products are going direct
to Europe and forcing back the gold they
had driven out of the country. Already
some 100000 of gold is on its way
hither and still larger amounts are ex-
pected to follow. This is one of the re-
iefS that has appeared within the week
Another hopeful condition has arisen
out of the heavy break in securities last
week. The chance it afforded of buying
our best securities at 20 to 30 per cent be-
low their average price has brought out
a steady stream of buying orders from
London and other European centers, and
the amount exported, though not definite
~ known, must aggregate many millions
in value. This again has created a large
amount of bills on Europe and contribut-
ed to the importation of gold. For the
moment, this movement has somewhat
abated, partly in consequence of scme re-
covery in the prices of securities and part-
ly owing to the Bank of England having
on Thursday advanced its rate of discount
from 215 to 3 per cent; but as all the
symptoms show decided foreign gain of
sd 4
gain will be increased by the suspension
of silver purchases-whichm may now be
regarded as all but assured-the proba-
bilitieS favor a revival of these shipments
at an early date.
Also, it seems reasonable to anticipate
that the now PROSTATE condition of the
great speculative interests centering at
Chicago will necessitate further large ex-
ports of grain and provisions. With
these causes contributing to swell the Or
side of our account with Europe and
with the current and necessary future
decline in our imports diminishing the
DIR. side, it is clear that we are now in
the beginning of a change in the balance
of our foreign trade that can hardly fail
to bring to this country a large ultimate
aggregate of gold. We do not venture to
estimate what that total may be; but
among those nearest to the heart of for
eign banking operations it is variously es-
timated at from twenty-five to forty mil
lions of dollars. In this factor alone,
therefore, we have ample sssur-
ance of an early large reinforce
ment of the reserves of the
banks,-of itself sufficient to cure the
stringency not only at this centre but also
at the interior. Other reliefs are also
coming into play. The banks of this city
are making arrangements for taking out
about ten millions additional circulation,
which within few days will enable them
TO satisfy the urgent wants of their coun-
try and western correspondents. The
city savings banks have obYiated one
source of danger by notifying their de-
positors that they avail themselves of
their legal right TO defer payment Of de-
posits for thirty TO sixty days. Having
done this, there will no longer be any ex-
cuse for certain of their number continuing
to hoard large sums of money by which
they have provided against a possible
run" of depositors.
Thus strongly fortified it seems entire
ly reasonable to conclude that so far as
the crisis is due to mere scarcity of cur
rency its backbone is broken. Only two
possible sources of obstruction to the re-
covery of confidence remain; the waiting
for the verdict of congress on the silver
question, and the possibility of further
accidents arising from the late specula- |
tive losses and from the prolonged tension |
to which business has been exposed. As |
to the former, little doubt is now enter |
tanned in any quarter; and as to the lat |
ter, the danger will daily diminish as the |
new supplies of money become distrib- |
uted while it is certain that scarcely any |
misfortune can befall spectators in pro- |
duce which will not benefit the situation |
and the country.