The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-09
BANKER CLEWs' VIEWS.
The Financial Outlook as Seen From
Wall Street.


Wall Street
New YORK, Jan. S.-The new year has
opened with more settled feeling in the
financial markets than was generally ex>
pected. The funds called in from loan last
week, to be available for the payment of
dividends and interest, have this week been
disbursed for those purposes, while cur
rency has flowed in freely from the interior
and thus the banks have been enabled TO
better supply the wants Of borrowers. At
the same time the recent exports of gold,
largely due TO remtttances to pay January
interest on our obligations held abroad, are
about coming to close, which will soon
help TO restore confidence in the market, the
disturbance of which hes been a principal
cause Of late in unsettling stock exchange
values.
The annual balancing of accounts Of in
dtviduals and corporations appears to have
been generally unusually satisfactory as to
results. Though the business Of 1892 was of
an uudemonstrative character and excep~
tionally free from speculative excitement,
yet the years aggregates show its volume
to have been extraordinary and its net re-
suits probably unprecedentedly profitable
The fact that the years records OF business
failures in the United States show the
amount of liabilities to have been but little
over one-balt those of either 1891 or 1890,
SPEAKS VOluD6S LOT IQo CONSERVATIVE ana
profitable character Of the years trade
This gratifying result has been principally
due to the abundant harvest Of 1891 and the
fairly average crops of 1892. The proceeds
of that period OF extraordinary production
have been employed in the liquidation OF a
large amount OF deferred indebtedness,
which has infused new life and confidence
into every branch OF business and impaired
healthier tone to credit operations. The
creditors whose claims have thus been set
tied haveN had to seek new investments
and their purchases have been ons principal
cause Of the stability of securities and Of the
ease with which We have taken up such an
immense amount OF investments returned
from abroad.
1t is this same general consciousness OF
financial strength and soundness that has
caused the startling results OF the presi-
Dental election 20 be received with such I'M
expected calmnsss. 1t is also to this cause
that we must attribute the abseuce of I'm
easiness In the near prospect of q pro-
nounced change in the industrial and COM
msrcial policy Of the nation. The seeming
small account that WsIl street attaches to
this impending legislation is not due to any
want OF comprehension of its Importance or
| of the Interruptions 60 trade that it will
occasion, but to the conviction that the
| country AZ well prepared to endure the trial
OF its strength. Wall street enters the new
year with this very important fact in its
favor-that while, as already inJimsted. a
permanent investment has already
been found for the secur-
ities returned from Europe,
the issues of new obligations by railroads.
have been in 1892 las also for the two
previous years. exceptionally light 1t Is
true that considerable amounts of stock
have been put out in connection with the
Incorporation Of private firms; but these
are not new creations, but the mere chang
ing OF the form Of already existing enter
prises. It Is therefore TO lie presumed that
ths new creations Of corporate capital have,
for the last two or three years, fallen below
the normal demand for investments. and
| that therefore the floating market supply of
securities must now be of strictly moderate
| Dimensions This consideration has con-
tributed toward sustaining the market
| through the trying conditions of late
| months, and may reasonably be trusted TO
afford like support during 1898.
With so many really substantial factors
| In favor OF condolences, it is unfortunate
| that anything should occur to weaken their
| legitimate effect upon Wall street interests
1t is unnecessary to inquire what truth
| there may have been In the rumors of a
concerted plan for helping the market and
the banks by large transient issue of
| United states bonds, for the mere public
mention OF the matter has duashed the suR-
| gestion. The incident, however, has been
! misfortune: for both at home and abroad
| it will be construed as implying a condition
| OF things calling for extraordinary precau-
| tions; and such a suspicion does in Justice TO
! the intrinsic strength of the existing situa-
ton and suggests danger where it does not
really exist. The use u the governments
| authority to sell bonds TO keep 10 its gold
reserve is a resort to he awaited of only in
| the face OF a virtually certain prospect
| of a really fatal foreign drain Of gold:
but atspresent no such positive danger con-
fronts us. IL there were no hope Of a speedy
suspension Of purchases Of silver. and none
| OF some useful international agreement
being reached on the reassembing Of the
silver conference, then there might be some
| justification for the government consulting
with responsible fnanciers as to the best
means Of preparing to deal with q threat
eniuR contingency. But such 10 far from
| being the real situation. There is fair
| prospects OF the suspension, at least, of the
| silver act OF 1890 some time during this
year; the probability Of such step will
keep our currency on q parity with gold
and tend TO restore European confidence in
our investments, besides should protect us
against further serious drains of gold. For
| these reasons, any such conferences as are
rumored 10 have been held between the
Secretary of the Treasury aud certain gen
tlemen OF this city would be not only at best
premature but also misleading and un-
settling, rather than conductive to conf
| dence.