The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-07-10
BANKER CLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

passed Lhe crucial point OF the Crisis, ana
the process of recovery has set in; but it
proceeds so gradually as to make no con-
spicuOus impression upon the value of Sc
curities, The special intervention of a
group of influential banks last week by
taking out a large amount of clearing
house certificates, had the effect of break
ing up the dangerous stringency in money;
but the seriousness of the circumstances
which led to that saving effort
causes yet to remain certain
degree of cautionary effect Several cap
italists of Understanding and large cOrpo-
rations with which they were associated
had apparently become temporarily en-
barrassed by the difficulty of borrowing.
Indeed. the distrust has been more per
Vasive probably than at any previous pc
riOd since the memorable days of 1873;
and the whole difficulty arose from mis-
givings lest the Sherman act should
drive US into a suspension of gold pay
ments This distrust became so positive
that nothing short of immediate steps to-
wards the suspension of purchases of sill
yer could stay its force, and deferment of
those steps produced quick and threat
euing iutensification of the apprehension.
The Presidents call for a special ses-
sion of congress was the only kind of
treatment that could produce any relief.
That effect it has certainly had but there
Is Il llLIllb " WIdu MI. ALGNGAILlu . llNCu-
tiOn can accomplish. 1t is known that a
month hence congress will proceed to the
considerat tion of this question; and, from
such investigations as have been made
into the views of members of Congress,
there seems to be more than a mere prob
ability that the country may be
saved from any further silver
alarm. But in a matter of such
| supreme Importance anything short of
ahcp111tn q pppfqiOfv iC ipC1yffipipDt n
tablish a full return of confidence. The
question is a very broad one and ramifes
itself through our entire currency system,
and it will require judiciOus handling to
insure the quick conclusion which is
above all required and which it may be
hoped congress will reach. 1t is possible
that the discussion may verge upon sen
stive topics; but that is foreseen, and
there is consequently no disposition to
take everything for granted, but to keep
business within conservative limits until
it is fOreshadowed what are likely to be
the monetary conditions Of the future.
Whilst it is highly desirable that con
! gress should pass without delay bill re-
| pealing so much of the Sherman act as
! provides for the purchase of silver, yet
/ considering the uncertain composition Of
the Senate and the probability that the
more money" men may be found to
| insist on some compensation or substitute
/ for the suspension of the present issues of
| silver money, it is not improbable that
! contentious may arise from that sort Of
! bargaining. II is possible, however, that
such a turn in debate, should 1t be wisely
| led, might be productive of much good
and help towards better settlement of
the general question. For 1T is MOTTO be
supposed that stoppage Of silver issues is
| the only amendment the currency situation
requires We must have an elasticity in
our currency that will permit its volume
to increase with the growing business Of
the country; and if the new silver issues
are stopped without provision being
made for a natural additional supply of
money, the change will be simply one
from unsound imitation to the opposite eX-
treme of violent contraction. 1t would
be neither an unreasonable nor an Un-
wholesome demand ii, concurrently with
the consideration of a repeal bill, the
| sense Of congress should be consulted as
| to the procurement of this needful elias
ticity through amendments of the laws
| relating to bank note circulation Were
a satisfactory understanding reached
| on that question, it would no
doubt materially contribute towards
| insuring the cooperation of that large
section of the silver party who mainly
care for the way being kept open for in
creasing the circulation, whether through
| SILVER OI pdpUT DCllS com ij1Tuttely lD-
! material to them Ample deliberatiOu if
controlled by wise heads and directed to-
ward prudent plans, may afford broader
ana more permanently satisfying results
than a partial conclusion limited TO one
| of the many points involved. IL is to be
hoped that some such prospect may tenn
Per the public patience in waiting for the
! completed action Of Congress; that, how
ever, need not and should not prevent the
early suspension of silver purchases
| through the prompt and simple method
| of Joint resolution, which would avoid
| much dilatOry parliamentary wrangling.
| The money market is steadily working
! into a condition of greater ease. The de
mand for currency from the interior has
! almost ceased, ana few days may quite
| possibly see currency returning from the
west. Besides which there is reserve
! resource Of great many millions which
! has been withdrawn most seltishly and
! dangerously from the banks and trust
! companies by savings banks Beyond
! this, there is an amount, considerable
| in the aggregate, withdrawn from
| deposit by private individuals and ultra
| conservative country bank presidents,
/ which may be expected to find its way
| back into circulation so soon as the strin-
| gency has abated. This movement is
| likely to soon place the banks in an easy
| position, when we may run into the op-
| posite extreme of glut of money and
| low rates of interest. The pressure for
| discounts has almost entirely disappeared
Little new paper is being made, and the
stronger and more prudent firms had
made provision ahead of their wants when
the first signs of the storm appeared so
that now the amount of paper offered at
bank is quite nominal.