The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-09-18
BANKER cLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

Inc financial Outlook as Seen From
Wall Street.
New York, Sept l6-Duriug the past
week there has been n continuation of
the improvement in Wall street interests,
and marked recovery in the tone and
amount OF business at large in all parts
of the country The restoration of the
banks 10 something approaching normal
condition has contributed much towards
this improvement; inasmuch as it mas re
moved the money blockade, restored CON
tidence in credits, renewed disCOunting
and prepared the way TO a general return
of ease and low rates in money. The &C
tiOn of the House of Representatives on
silver has made a still more important
contribution towards the recovery of CON
tidence for it has given strong assur-
ance TO the remedy of the evil from which
all the derangements-m monetary, tinan-
cial and cOmmercial-have primarily
arisen.
Unfortunately, the recovery is OBJ
structed by the needless delay of the Seu-
ate in confirming the action of the House on
silver repeal. For the ordinary purposes
of trade, the strong assurances coming
from the House and the probability of
the Senate ultimately giving Il like ma
Jority may be accepted as "a sufficient
guarantee of a moderate business; for
trade obligations do not usually extend
over period longer than few weeks or
months. But with the larger operations
of capital it is different case. When
OUTLAWS for large projects have to be pro
Vided for those who are to advance the
capital need to be assured that nothing
will interfere TO prevent the payment of
their loans and when doubt exists as to
the kind of money in which liquidation
may be ultimately made, the capitalist
refuses to lend until that radical
doubt is removed 1t thus comes to
pass that the tactics of delay so resolutely
persisted in by the Senate are inhicting
upon the larger operations of finance and
upon new undertakings of industry as
complete paralysis as has existed at any
time since the depression set in. Equally
Is it holding in restraint the disposition of
foreign capital to seek employment in this
country, providing our money of account
Is made satisfactory. However much,
therefore, business interests may owe to
the prompt action of the House on the
silver question, it owes it to the reckless
trihing of the Senate that the recovery Of
confidence and of commercial activity is
still very far from being complete and that
vast amounts of capital are held stagnant
or but momentarily employed.
Another serious effect of the ObStruCt-
i've attitude of the minority of the Senate
is that it is holding in suspense other
measures in which the country is urgent
ly inter estcd The action of congress on
the large prospective deficiency of reve-
nue., upon the impending tariff lcgisla-
ton, and upon measures necessary to pro
vide better elasticity in our currency
system, is delayed to the detriment of
business interests universally. While
the country insists upon being finally eX-
empted from the dangers connected with
a deprecated silver currency, yet it does
not overlook the fact that, when that
source of currency supply is cut
OF, it is necessary that some
other means of sustaining the volume of
the circulating medium must be supplied
and, in view of our late experience of the
effects of a currency famine, the people
are not willing that such provision shall
be postponed any longer than is really
necessary. To deal with that measure,
however, before the silver problem is dis
posed of would be but to put into the
hands of the silver minority the means Of
defcrring legislation on silver purchases
and of throwing the whole currency ques-
ton into confusion. 1t may not be neces-
sary to undertake at present any broad
scheme of currency reform; but whatever
has TO be done must wait until the Senate
has voted on silver
1t is true that, when confidence has
been restored and the whole circulation
has thereby been brought again into free
activity, we shall find the supply of money
equal to immediate Requirement :, and the
more SO as the new tariff policy will es-
tabliSh, from this time forward, a lower
range of prices, which will propOrtionate-
ly reduce the amount of currency needed.
But, Notwithstanding that fact, it is to
the last degree undesirable that our ever
expanding trade should be left TO operate
under consciousness that there exists
no legal provision for an increase in the
amount of currency; and there are large
sections of the country that would become
resti e under such a condition of5thinCs.
1T is not therefore to be expected that
congress will let the situation stand just
where the suspension of silver purchases
leaves it.
just what congress may choose to do in
the circumstances does not yet appear
In some quarters there are plain indica-
tiOns of a disposition to initiate large
measures of reconstruction. While that
may become a positive necessity at some
not distant period, yet a much more limi-
ted treatment would suffice for immediate
requirements. If the national banks
were allowed to issue notes up TO the full
face value Of their bonds, that would
bring out new issues of national bank
notes which would more than satisfy i'm
mediate wants; and the country would
have an interval for considering what
should be the nature of future arrange
ments-a question upon which there has
50 far been very little intelligent discus
sion. Considering the many and serious
questions that await the atten tion of CON
Rress, it seems that this one might well
be dismissed with this partial and trans
lent treatment.