The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-12-04
BANKER CLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

without any common effort to force the
improvement anticipated. The near ap-
prOach of a session of congress unusually
important for the questions to be consid-
cred, naturally has tendency TO hold op-
erations in suspense; and that kind of in
huencc confines, for the moment, the
speculative transactions to brief turns
The advance publication of the Wilson
tariff bill, as agreed upon in committee
has enabled Wall street to form its first
impression as TO the bearings of that i'm
portant subject of legislation. The in
dustrial stocks most conspicuously re-
ilected the effects of the bill; and that
group exhibited n general decline, fol-
lowed, however, by an early recovery
consequent upon Ovcr-sales, and due in
part also to previous intimations of the
changes of duty having caused short"
sales which were covered on the bill
being made public. The retention Of raw
sugar on the free list with small charge
upon refined to offset foreign export
houuties is construed as on the whole
not so unfavOrable 10 the sugar trust"
as it at first appeared inasmuch as IL en-
Courages the largest possible Consump-
ton. Judging from the tone of
prices outside of the "industrials ~
| the general bill does not
appear to have excited any dstrust un-
favorable to investments; il must, how
ever, be taken into account that any ad-
| verso bearing of the new tariff policy had
already been discounted; and perhaps all
that can be properly said is that the
publication NJ the details did not change
materially the estimates that had been
previously formed. The reductions of
duty in the leading schedules are less ex-
treme in many instances than had been
expected among manufacturers and con-
sidering that on the one hand, the old
duties raise the prices Of imports much
above what home producers are selling at
and, on the other hand, that producers
will have in many cases inn
portant advantages from cheaper
raw Materials the impression gains
ground that the new duties may not so
seriously affect manufacturers as has
been feared Certainly. there is nowhere
any evidence that the bill is viewed as
moro deranging to industrial interests
than it was expected to be; perhaps, as a
rule, it is regarded as less threatening
This element, at any rate, has now had
It's effect on Wall street, and it has not
been such as to materially affect conf
denCe in investments. The industrial"
stocks may be kept unsettled until the
blll - llAdllg hANIbHNh VI bA NblAktboHs ho
the proposed duties on sugar, lead and
cordage are likely TO be hOtly contested
in both House and Senate; but, beyond
that, the future estimate of the bearing
of tariff legislation upon stock exchange
interests is not likely TO undergo much
change and this will therefore cease TO
be an important element Of fluctuations
in prices.
Wall street, however, has at the mo-
mcnt two other occasions for a waiting
policy. The utteranCes Of the President s
message, expressing the attitude Of the
administration upon points of policy about
which there is some conflict of opinion In
the majority party, is looked for with
more than usual interest, and, should the
document commend itself TO public opin-
ion, it might prove to be an important
contribution TO the recovery of confidence
from the shock it has lately suffered. The
prospects Of currency legislation also are
watched with deep interest; for il is felt
that, Notwithstanding the present large
accumulations Eof idle money in the
banks. another twelve months might quite
possibly see it all distributed and new
supplies needed which, as matters now
stand, there is no trustworthy means Of
getting. The plan now under consider
alton provides for note issues upon CON
ditiOns that would insure security, elias
ITCHY and redemption without pledge of
bonds, is gaining in interest, the more SO
as it appears TO be receiving support from
high banking opinion, and is understood
to be regarded favorably by the admins
tratiou. The plan contemplates among
other provisions, making the notes a first
claim upon the entire assets of the bank
and also upon an extra liability OF stock
holders equal 10 the amOuntOf the capital
stock II also provides for Il tax upon the
notes, to create q redemption fund avail.
al la fpt, "a r,n pf tho Qf my
insolyent bank other clauses are proposed
for enforcing quick redemption Of the
notes. and also to secure periodical exam
inati0n of the banks and the publication
of statements Of condition. This propo-
sitiOn appears TO be rapidly growing in
favor, and as matters now stand IL seems
more likely TO be adopted than any other.
But, in the present divided state of party
opinion on the question, there is some rea
son TO doubt whether this subj ect may be
disposed Of during the coming season an
uncertainty which is TO be greatly regret
ted as one Of the things that can be least
Of all afforded is a still unsettled state of
our monetary system.
Outside the foregoing factors depend
ent upon new legislation, the situation
continues to steadily improve. From all
parts Of the country reports show q
gradual recovery in the state Of business
The reduced condition of stocks of goods
is forcing buyers into the markets, and
though purchases are made cautiously
the volume Of trade is assuming much
larger dimensions The exchanges OF
the clearing houses are gaining largely
upon those of late months and the
banks are extending their discount op-
erations. The manufacturing interests now
better understand the conditions under
which the new tariff will place them
and are therefore more free to resume
work in response TO the increasing de
mand for goods. The industrial inter
ests are also finding relief in the reduc
tion Of wages called for by the changed
conditions Of trade. The extraordinary
cheapness Of money facilitates the re
sumption OF business; it is beginning L
have its effect in encouraging prepara
tiols for launching new enterprises, anC
the conditions are becoming more propiti
Gus for the introduction OF corporate
loans. which were thrown into suspense
by the panic. An unusual extent Of capi
tai seeking employment is apparent in the
specially active demand for cor
porate mortgages and this demand l.
stimulated by the indisposition o
banks and trust companies to receive i'm
portant deposits, tor the reason that
with the present supcrabUndance of float
ing balances, they cannot afford to pa,
interest on funds thus left in their hands
The tendency thus arising to a rise in the
price of investment securities is too eVi