The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-22
BANKER cLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.


the depression had touched its lowest
point has been confirmed by the course Of
the market during the past week. The
last bank statement showing gain OF
! over 80 ,OOO, 600 in the surplus reserve and
an excess in that item over the figures Of
like date for either of the last two years,
was the first fact to firmly arrest the pre-
vatling decentralization. It showed not
| only that the banks were in strong po-
sition, but that free influx of money
! from the interior had set in calculated to
further strengthen their position at u
| later stage. In the state of affairs then
existing this was the one thing needed to
restore confidence. II meant that no
! good borrowers, whether financial or mer
| camille, need longer suffer from lack of ac-
| commOdation, and as stocks were selling
! lower than at any time since the Barring
disaster, there could be no question as TO
their being sound collateral, excepting
the 'industrials." This condition of tho
reserves also mollifes any apprehension
that may still exist as to the possibility
OF further exports of gold draining the re-
| sources of the banks, The latter move
ment has, for the moment, more as
suring look the shipments Of the past
week having been lighter than was gen
orally expected Further failures of
banks in Australia have, however, sug-
| SNoVNu pllO liohiblltbY VI buult uIdlH IIOUl
London on this market; but 1t is felt that
such wants as are likely to arise in that
| quarter can be met without any serious
strain. IL would seem that no gold can
| be sent to Australia except what may be
needed for purposes Of temporary help to
! embarrassed banks; and the suspended
banks are owing large portion of their
deposits to British creditors, whose with
| drawals may be expected to largely Offset
| anV cash aid sent from OndOn
SO far as the late condition of the stock
! market has been due to purely banking
and monetary causes, it is now relieved
from that particular source of pressure,
and we may count upon reasonably
steady course Of the money market for
some time ahead. This is an important
contribution TO the recovery of confidence;
! but there is limit to the encouraging in
! terenceS deducible from it. IL means that
| whoever may be disposed to buy good se-
| curities, either as an investment or for
! transient holding upon good margins, may
! do so with reasonable prospect Of COM
ing out on the right side. But 1t does not
mean that we may expect an extravagant
! upward reaction in securities generally.
1t will be wise for operators TO realize
! how violent is the wrench caused by the
| break of the "industrials," f." and how wide
its effects have been and how long those
| effects may continue. That crash has
| driven out of the market a large portion
| OF the outsiders" who have been operat-
! ing in those stocks and few of them have
| anything left for resuminR operations. 1t
has shaken confidence for the time being
in that class of properties, and it has made
| lenders cautious about making large ad
| Yances on them. Time alone can serve to
heal this shock and to bring back to Wall
street capital seeking temporary employ
ment in securities. For some time still
the dubious conditions will be exaggerated
and the hopeful ones will be subjected TO
! pessimistic discount There is a
lesson yet to be learned by the pub
lie about the "industrials," the moral of
| which will act as a long prOtracted caution
about the future employment of capital.
| AS the process of Investigation into and
| repair of the crippled combines" goes on,
! IL will be found how utterly rotten has
been the basis of their organization and
| their methods Of conducting business ;and
| when it is reelected how many industries
and how many hundreds of millions OF
! commercial capital have fallen under the
| vicious control of this rotten principle Of
organization, then will come o second
stage of distrust toward these institu-
tions, more dangerous even than this first,
for it will be the stage of disintegration
and dissolution. When that stage comes,
| however, we may look for a restoration OF
natural conditions among our industries
at large. But, during the interval, these
! doomed institutions will remain source
! Of industrial distrust the influence of
which will be unwholesOme.
There can be no doubt that the imitation
associated with these TRUST" organiza-
tions has infected industrial operations in
quite other directions The spectacle OF
the enormous Wall street speculations in
the "cordage," whisky etc, combines
has led TO the Incorporation of large
| number of private firms upon basis of
initiation which cannot stand the test of
experience and the strains to which
credit is periodically subject. Banks and
bankers haze been made subservlent to
these creations; and the result has been
apparent In the failures Of interior banks
and the malfeasance of corporate officials
which have shocked the country for the
last two or three weeks
Reference is here made 10 these condi-
tions Of Industrial imitation, because they
constitute phase of things Of which lit
tie note has been taken in accounting for
the present state of affairs in Wall street,
and also because they stand connected
with certain after-effects OF the crisis
which must hang around the investment
markets for some time to come. At the
same time, while giving due weight to
these elements of arrangement, we must
never lose sight of the immense recupera-
tive power OF American resources and of
the quickness with which our people de-
tect their mistakes and throw overheard
false methods. The lesson Of the ''inAus-
trials lis already sinking deep into the mind
Of our people; and the next phase OF
investment and speculative movements
will be to let all such enterprises severely
alone, and give the more attention to the
things that are honest and of good re-
| port" This sort of discrimination will
| soon perceive that our railroad stocks, at
current prices, are an exceptionally good
investment; and at no distant day, both
home and foreign investors will take off
the market an amount of those issues
that will restore values and confidence at
the same time. Whilst, therefore, a
buoyant restoration Of speculative activ-
ity is not to be expected, it is reasonable
10 look for the coming forward of the
conservative men Of means who always
find their opportunity for buying after
such fr ostration Of values as has Just
befa.Ien ITqll street. ] earnestly recon-
mend buying all the good investment
stocks on the raids hereafter.
FATAL ACCIDENT.