The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-13
BANKER CLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

chiefly of a local rather than national ma
ture, voting could hardly be viewed as
having any direct bearing upon invest
ment interests. And yet the remarkable
uniform change in the vote from that of
last year, has been very naturally re
gurded as giving a certain degree of ma
tional significance to the outcome. Opin-
ion IS divided upon the reasons for this
turn in the political weathercock. Some
regard 1t as simply a new illustration of
the popular habit of holding the govern
ment for the time being responsible for
whatever misfortune may befall the coun-
try, no matter who or what may be to
blame for it. Others think it expresses
popular dissatisfaction with the party
il power for delay and lack of unity in
adopting the silver repeal bill. Others
incline TO the view that the anticipation
of the effects of the new tariff caused the
late depression, rather than the appre-
tensions connected with silver, and there
fore regard the change of majorities as
| expressing dissatisfaction with the new
tariff policy. While yet others think they
find a solution in the revolt of the people
! against the wrongs and corruptiOns of
machine methods of party management.
These various explanations are, of course,
| influenced by party productions, and an
impartial observer would probably rule
that no one of these causes alone accounts
for the change, but that all have in vary
ing degrees contributed to it.
Be this as it may, the elections were
followed by a general temporary rise in
prices, especially those of industrial
stocks; but how far that was due to any
serious Importance being attached to
these political influences it is not easy to
say; for the previous speculative selling
and some fall in prices had predisposed
ba IA
| reports came from London of an increase
| of gold in the Bank of England and
| a fall there in the market rate
| of discount, and buying orders
! for bonds came from that center
! which it is hardly supposable were much
! Influenced by the result of our elections.
| Probably, the main consideration that
| largely affected Wall street was the rea-
/ sonable probability that such an emphatic
admonitiOn TO the party in power will
! make them more careful about excuses
in carrying into effect their disposition to
| introduce large changes in established
| business, and in monetary conditions.
! Such an influence would very directly
! contribute towards the restoration of con
| fidence in quarters whore it is now much
! disturbed by pending and anticipated leg
| islation and to this we prefer to mainly
/ attribute the effect of the elections in
! Wall street, for it is a legitimate Contri-
| button towards the restoration of conf
dence.
During the last half of the week, the
| market followed closely the course of af
fairs at London; for, at the moment, the
support of prices seems somewhat de-
| pendent upon affairs al that center Not
! that we need any monetary support from
that or any source, for the city banks are
already flooded with idle money, and con
siderable early imports of gold from
l.
! present course OF exchange. 1t has, how
ever, been pretty generally expected that
the suspension of silver purchases by the
| treasury would be followed by foreign
orders for our securities, and holders of
| stocks have no doubt been induced to buy
| more freely than they otherwise might by
that consideration. So far, this eXpecta-
ton has been but very partially realized,
and the complication of the political sit
uatiOn, growing out of the elections,
affords a new element to be digested
before it can be satisfactorily judged
what extent of London buying can be de-
pended upon. The attitude of the Bank
of England is calculated to inspire conf
dence It's high reserve is maintained !;
and the fact that it has checked the up
ward tendency in the money rate in the
''open market" and made no advance
Thursday in its own rate, shows that the
managers view an impending export of
gold to New York with equanimity. To
this extent, it seems likely that the Lon
don market for securities is not likely to
encounter any disturbing influences. Con
sidering, however the continuance of bus
mess depression in this country ana the
new turn taken by politics, it seems rcas-
enable to expect at least some de-
gree of reserve in speculative bus
mess in American securities at
London. At the same time, as the con-
! q =
sOnably expected to improve, there is a
reasonable possibility that this temper
may soon change for one of greater conf
dence.
At the moment, the mood of this mar
lIet IS that of quiet and waiting for an es-
innate of the new factors in the situation.
After the two great eXcitements of the
silver struggle and the elections there is
a pause for rest. after which both sides
viii readjust their estimates and plans
and resume their contest. Certain it is
that, in respect to the large matters re
Gently settled, the future can only be
greatly benefited. Business may be still
Enthusiastically dull, but the conditions
are such that it must steadily improve
The fall trade may have reached such an
advanced stage that no striking improve
ment in it can be expected but the esti-
mate among merchants is very general
that the spring will bring a marked i'm
prOvement upOn the experience of the
last six months. This is fOreshadowed in
the current large increase in discounting
operations, consequent principally upon
the preparations of manufacturers for
the business of next season. The
knowledge of these facts helps
confidence. and there is perhaps nowhere
a more hopeful feeling than in bank cir
cles, where the real pulse of business is
most easily felt and most correctly in
terpreted. We take it., therefore, that
there is nothing in the situation to disturb
confidence in the future value of securi-
ties For such of them as belong to the
purely investment class, the course of
prices can hardly fail to be steadily up
ward. Pending the late crisis, large
amounts of investments have been real
lied upon; the proceeds are still resting
idle or earning nominal interest on tran
sient loans, and, the silver danger having
[ been removed, the owners of these funds
may be expected to forthwith invest them
in bonds or tirst-class dividend paying
stocks A demand of that character is
always followed by an improvement in the
market for stocks; and that demand gen
orally goes by bounds and rebounds, which
afford opportunities for transient opera
tions This tendency can hardly fail to
show its effects upon the stock market at
no distant day.