The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-25
BANKER oLEws, VIEWS.
The Financial Outlook as Seen From
Wall Street.

New York, Dec. 23-The year In Wall
street draws to its close with the usual
disposition to contract operations and
close up accounts. To that extent, this
season always affords opportunity for
bear" operations; and this year those
opportunities are perhaps unusually at
tractive. The ''industrials" are in an un-
usually exposed position. Not only have
they suffered from the general depres-
sion of trade, but it is prOblematical as to
how far they are likely to be affected by
the new tariff, and the uncertainty on
that point keeps them constantly exposed
TO attack, The oscillations in this group
OF stocks tend to keep the general list
more or less unsettled; and this fact, to-
gether with the Interruptions incident
to the holiday season, has somewhat inn
paired the general tone of the market.
There is, nevertheless a steady undertone
OF confidence in the better class of rail<
road stocks, which is supported by the
still active demand for bonds, 1t is gen
orally conceded that the prospects of the
railroads for the next few months do not
warrant the expectation of large earn
mgS; but that prospect has an Offset in
the large economizing of operating, repair
and construction ouvlays in the growing
conservatism of management, and IN the
fact that the net earnings show an inn
proving ratio as compared with the gross.
Rumors OF certain city banks having
suffered in connection with the Beecher-
Schenck troubles, and the closing of the
ST. Nicholas Bank, developed on Thurs
DAY and Friday somewhat unsettled
IceIlng. IL was previously known, how
ever, that the institutions mad suffered
serious losses and the effect of the sur
prise was correspondlngly eased Com
ing, however, with the contracting Incl
dents attending the close of the year,
these occurrences have had q depressing
effect for the moment; but the event is
scarcely calculated to have any serious
results, 1t is perhaps not surpris-
ing that some such developments
should follow the late serious crisis
Pending the resort of the clearing house
to the use of certificates, it was found
that this bank was in feeble condition;
but it was out of the question to leave it
to its fate under the prevailing excite
ment. The stronger banks now feel that
there is no longer the same necessity for
them to carry an impaired institution,
and hence this concern was left to self
support, which resulted in its coming TO
grief. In the higher banking circles, this
disaster has been for some time regarded
as impending, and the removal of the con-
sequent distrust will now have the effect
of strengthening the general banking
situation.
There is halt in the renewed export
of gold. For the moment, Germany,
whittier all the shipments have gone, APP
pears to have satisfied her wants; and
there are no symptoms of any important
further immediate consignments. AT the
same time, it is an almost invariable rule
for gold to go out at this season in settle
ment of annual balancings, and it would
not be surprising should some further
moderate amounts be sent. The condition
of the trade movement is not suggestive
of continuous outflow. 1t is true, that
our exports of produce are light but we
have considerable surplus of stocks of
grain; and, what is more important, the
importations of merchandise are under
going a very severe contraction and are
likely to remain far below the average
volume until the new tariff takes effect
1t might be rather fortunate than other
wise 10 part with $1,000, 900 or 10000 900
of our gold. The effect at home would be
to reduce the unhealthy surplus ofmoney;
and abroad to produce an ease in the
moneymarkets calculated to'deyelopa de-
mand< alike for our Securities and our
products.
The tariff question continues to keep
business in an unsettled condition, and
may be expected to do so until the new
duties are finally fixed. Consequently,
the best that can be anticipated for the
next few weeks, is hand-to-mouth bust
ness. Discouraging as the prospect may
seem, it is not without some alterations.
A market of exhausted stocks has always
certain advantages over a glutted one.
Makers and holders of merchandise, in
such conditions, have IL in their power to
support prices and to make profits, though
it be upon large reduced sales. Nor is il
to be overlooked that the tariff prospects
and the depression of business are COM
bining to exclude competition from for
eign goods, and hence the large falling
off in current imports. There can be no
trade, the production still continues
much behind the consumption This
foreshadows an ultimate exhaustion of
iobbers' and retailers stocks to a point
that will leave large vacuum TO be filled,
in the filling of which manufacturers
should be in a position TO obtain fair
prices. 1t is therefore to be expected that
so soon as the new duties are settled,
there will be a considerable revival of in
dustrial activity. That restarting of pro-
duction will give more general employ
ment to labor, and the working million
will gradually resume its wonted position
as an element of demand, and the country
will step by step regain its wonted pros
perity. During the intervening period of
inactivity, business can only remain Sc
yerely con Jracted; but the country will
feel that it can afford to wait, provided
there is a hopeful prospect beyond