The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-18
BANKER oLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street

Wall Street.
New York, Dec 16.-Affairs in Wall
street are working towards the lull that
usually attends the close of the year. The
custom of making up annual accounts and
adjusting yearly balances diverts
attention from both investment and
speculative transactions, aud causes
some closing up of running accounts and
that IS especially apt to be the case I'M
der such unusual conditions as at present
exist. Current transactions, therefore
are largely confined to bear profession
ais seeking to cover their shorts;
which, owing to the scarcity of stock
they find tor he a slow process. There is,
however, still an active investment de-
mand for bonds, naturally resulting from
the prevailing low rate of interest; and
this has an indirect sustaining effect upon
the value of stocks.
Though unexpected, the exports of gold
have little or no effect upon the market
for securities. So far, the shipments have
gone to Germany, and appear to have
been caused by the condition of the Ber-
lin money market, the rate on call loans
there being considerably higher than
here. This naturally causes German bal
ances resting here to go home. The rate
of sterling exchange does not admit of
conditions at present in sight calculates
to cause any movement of the metal in
that direction. There are two facts
calculated to hold any such tendency in
check. In the first place, our imports
of merchandise are very light, and are
likely to remain so until the new tariff
takes effect; and, next, we have, since
the repeal of silver purchases, about $685.
900, 600 worth of yearly surplus of silver
w will oil ha
place of so much gold in the settlement of
our foreign balances. In any event, we
could well afford a moderate export of
gold, should the condition of our foreign
balance require it; for the present ex-
cessive accumulation of idle money at the
seaboard centers is anything but a
healthy factor in the situation The vir-
tual pledge given by the city banks to the
treasury to meet, from their own stocks,
any export of gold up to $50, 600, 600 has an
assuring effect under the present depleted
condition of the treasury reserve.
The decrease of about 10 per cent in
the November gross earnings of the rail-
roads is an effect of the prevailing bust
ness depression scarcely to be surprised
at; indeed, the wonder is that the falling
of was not greater, considering the extent
of complaint that still comes from all
sources; and if transportation is to be
regarded as fair measure of the COM
parative activity of trade, it would seem
quite possible that such complaints ex-
coed the real occasion. The statements
of net earnings show decrease of but
one-half the percentage of decline on
gross; which proves that the roads have
been able to effect economies in operating
expenses that largely compensate for
their loss of business It may fairly be
said in behalf of this class of investments,
that our railroads are conceded to be in a
better physical condition and to be man
aged with more ability and upon better
system than at any other period in their
history. When the large properties now
in the hands of receivers have been re-
constructed uDon a conservative financial
basis, this important class of investments
will occupy very different position in
the eyes of the world from that which
they have hitherto held, and may be ex-
pected to attract ccrrespondingly in
creased attention from investors. This
improved status will have its due effect
upon values when the trade of the coun-
Try regains its customary activity; in the
me antime, the latent fact is helping and
will continue to help to sustain the value
of the floating supply of stocks and bonds.
There appears to be little change from
the general depression of the business of
the country. So far as concerns the in
terruptions attendant on the change Of
tariff, that cause of obstruction may be
regarded as having touched its period of
climax. ,Manufa cturerS are not vet certain
what are to be the new duties, and they
therefore do not know what changes in
wages may be necessary, nor what they
can afford to pay for raw materials, nor
whether they may not have to operate for
time at a loss; nor can they yet tell,
within six months when the new duties
will take effect. This makes the immediate
status of all our industries one of
utter suspense, and in some cases of total
suspension of operations. But, at the
same time, we are approaching a stage
when alleviations will sbegin to appear.
Within the last ten days the committee
on ways and means have made some well
come concessions to manufacturers, and
disposition is apparent, on both political
Sides to hasten the bill to its passage,
and to consult the convenience of domes-
tic interests as to the time of putting the
new duties in force. The very depres-
sion of trade consequent upon the initia-
tion of the change, is causing wage
earners to be more tractable and more
willing to conform wages to the impend-
ing lower range Of prices, and al
ready large concessions have been
made by workmen towards the
new conditions which the change
makes lneNludUIe. Inc prevailing uG-
preston is also severely contracting the
imports. with the eject of leaving the
market more in the hands of home manu-
facturers. These are cOunter-cOnsidera-
lions which must be taken into the ac-
count in a fair estimate of forthcoming
Industrial and CONNER, ial conditions;
and they suggest reasonable grounds of
hope that the spring months may bring
some considera bic alleviaJions of the alb
normal conditions that are now playing
havoc with the trade of the country.
The nation has not lost its vast resource,
nor its marvellous elasticity, nor its quick
facility of adapting itself to new condi-
tions; and however disappointed and en-
barrassed its great industrial interests
may be at the new conditions imposed
upon Them their motto is still ''nil desper-
andum."