The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-08-14
BANKER cLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

A.
the investment markets, the past week
has shown an Improvement in both condi-
tions aud prospects The working Of the
stock market has afforded clear evidence
that the point OF lowest depression has
been reached. Under the worst condi-
tons of decentralization, there is always a
level of prices at which either
domestic or foreign or both-will
become buyers and it is a
matter of ocular demonstration
that that force has now come in to sus-
tain the market The orders TO buy from
this class form a background of support
upon which the "bearn attacks make
little or no impression. Their sales are so
farttaken up by investment buying that,
when they want to borrow shares orr to
cover their sales, they find themselves
more or less ''Cornered." Their operations
are therefore confined to a few of the
least supported stocks, out Of which they
seem satisfied to earn their daily salt
1t is no small gain to legitimate business
that the reckless hlibustering of the
raidrs has been brought thus under
check; for it is the first step towards
rise to be assured that decline has to Jched
its "lowest Deep
The stock market has to a considerable
extent broken loose from influences that
are still depressing general business. The
extreme scarcity and continued boarding
of money has little direct effect upon
stock exchange operations. That kind of
business is done without the direct inter-
vention of cash; and as the banks can
lend on stock loans without parting with
currency they give certain preference to
stock brokers, especially as their col
1a 10 of Z he Co.
good security. Members of the exchange
therefore find no difficulty in borrowing at
bank at 5(G6 per cent. on call, while other
important borrowers have to pay l0tQl2
per cent. for the insufficient accommOda-
tiOn that can be afforded them This re-
turning ability to get loans enables
holders to protect themselves and makes
Wall street less sensitive than other in
terests to the adverse course in which
events are still running.
The week has on the whole contributed
some important reliefs to the general Sit
uation. 1t is true that there is no abate-
ment of the common dearth of money,
and none in the large demands of the in
terror banks for help from the metropolis;
the banks, indeed, are as much pressed
as they have ever been, so much so that
they are compelled to refuse currency to
outside applications, and have advanced
rates to almost prohibitOry figures; which
simply means that a point has been
reached at which they can no longer af-
ford to be generous, but must stand for
their own protection But, at the same
time, the fact that, by the end of next
week, nearly 20 millions of gold will have
been received from Europe, while some
10 millions of new bank circulation will
be in the course of issue, cannot but have
an important effect in relieving the
scarcity of money and thereby restoring
confidence.
Some relief is also felt from the fact
that congress is at last brought face to
face with the great silver danger The
message of President Cleveland was such
strong yet simple presentation Of the
case as to carry to all classes a deep con
victiOn of the danger in which the Sher-
man act has placed the country, and the
consequent necessity for Immediately re-
pealing the obnoxious clauses of that law
The President having thus broadened and
intensified the public hostility to silver
purchases, it seems reasonable to assume
the impossibility of congress failing to
satisfy this universal demand From
such symptoms at the capital as can be
traced amid the confusion of party ma
neuYer1ng, it appears quite safe to assume
that congress will ultimately adopt an IN
conditional withdrawal of the AUTHORIZE
ton to purchase silver, That is the sole
sine qua non to the restoration of conf
dence and prosperity; and the country
would like to know it-and the sooner the
better-ifs it is possible that a congress of
the United States could be capable of re-
fusing measure so fundamentally vital
and demanded by such an overwhelming
majority of the people.
1t is much to be hoped that this con-
cluslon may be reached with the least
possible delay, and that the discussion of
the question may not be hindered by mix
ing with it non-essential issues After
the main question has been decided, there
are other financial problems, that would
naturally arise out of the suspension of
silver purchases, which congress might
well consider. Lest the sudden cessa ton
of a largo supply of silver money
should result in the evils of contraction
it IS necessary that some provision be
made for new issues of currency from
some other source. In order TO provide
against that inconvenience, means should
be devised for an increase in the the ma
tional bank circulation and, to meet the
emergency, it might suffice, for at least
the present, that the national
banks be authorized to issue notes
up to the full face value of
the bonds deposited as guaranty
This would allow of a large increase in
the circulation; and if further expansion
should be found necessary it could be pro-
vided later by other means. Experience
has shown the necessity of providing
some resource by which the treasury
could protect itself and the public from
such emergencies as have recently &C.
Cured aud still exist. For that purpose
it seems advisable that congress should
authorize the issue of three per cent
bonds, by the Secretary of the Treasury
payable at pleasure after ten years, and
to be used to provide for any obligations
OF the government in periods of financial
difficulty. These measures seem nee
essary supplement to the suspension of
silver purchases; but other financial leg
lslatiOn may well be left for later and
maturer consideration. This being done,
the situation will be cured.
At the close of the week, there is a de-
cided improvement in the situation among
the banks. They have made consider
able gain in currency during the week,
and the arrivals of gold from England
have relieved the tension in every direc-
ton. The general opinion among man
ayers is that the danger point is now passed
and that, with the further supplies of
coin to come from Europe, affairs viii
work into an easier position.
She Wanted the Rudder.-"Ethel, will you
row with me down the river Of life?"
No, Clarence, but / wouldn't mind acting
as coxswain. brooklyn Life.
BEAUTIFUL SLEEP