The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-27
BANKER cLEws' VIEWS.
The Financial Outlook AS Seen From
Wall 2fraat

special stimulus from any quarter, and
London's present disposition to sell
rather than buy has been a slightly ad-
verse element. The fact that, under such
circumstances, the bears should have
hurriedly covered their short sales and
thereby caused an advance in prices is
significant Of a mistake in their estimate
Of the temper and underlying strength Of
the market.
The bull element is plainly in the as
cendant and it is steadily gaining in num-
bers and force. IL has behind it not only
majority Of the outside operators, but
also tbe powerful capitalist class con-
nected with corporate enterprises and
who have increased their holdings of Sc
curities during the late panic. This lat
ter class have faith in their holdings, be-
cause they foreSee a reasonable prospect
OF an Improvement in the value Of their
properties as the recovery of business
progresses toward normal conditions.
Nor have they lost confidence In the ulti-
mate revival of the European
demand for our securities; which,
so soon as the impending
legislation upon the currency and tariff
questions is completed, can scarcely fail
to respond to the fact that our invest
ments will henceforth rest upon a gold
basis as solid as that Of the moet conser-
vative nations of the old world. They APP
preciate the fact that politically, as we'll
as in the convictions of vast majority of
the people, the silver sentiment has been
defeated ard uprooted, and so etfectually
that there is no prospect Of its future re-
vival. This is factor in the status of
our investments which none more fully
appreciate than the men who stand be-
hind our great aggregate of corporate en-
terprises.
1t is not easy TO over-cstimate tho i'm
portanCe. to the future of the market, of
the backing Of this important class. This
support is the more to be depended upon,
because it is likely to be weakened (at
least for some time to come) through the
competition of new enterprises. The
misfOrtunes that have lately befallen in
dustrial and trading corporations are
against the creation of new undertakings
Of that character And, although there
has been an unusually long comparative
cessation of new railroad construc-
ton, there are no signs OF any
expansion in that line of en-
terprise; and this fact has an I'm
porUant bearing upon the value of
existing railroad properties, as il so far
insures them against the bad effect of
reckless competition for traffic. Capt.
talists Of this class can do nothing better
than to stick TO their present large hold
ings until the whole country has recov-
cred to a condition of healthy activity,
when they desire TO realize in order to un-
dertake new enterprises. We, therefore.
conclude that the stock market viii have
the support of this important class for %
considerable time ahead For 80 long as
that state of things continues, the bears
may be expected TO be of little use except
10 serve as the daily ailment for the lusty
bulls - and, no unforeseen adverse acci-
dents happening, the latter are likely to
have registering time.
The prospective money market must
have an important bearing on the future
of prices. 1t Is not easy to take in at one
glance the full meaning of an accumula-
tion of 500 800, 900 Of surplus reserve in
the New York banks, Concurrently with
a large like increase in the banks Of the
country at large. 1t is true that this un-
precedented abundance of money reflects
a continuance of the depression of bust
ness that resulted from the panic; but 1t
is not less true that it also signifies vast
amount Of dislodged capital awaiting re-
investment. 1t is also true that itmeans
a forthcoming anxiety, on the part Of the
banks and other leaders, to put out their
funds for such temporary use as Wall
street is always ready to accept. And it
further means future exceptionally low
rates of interest, not only on "call'' loans
but also on the "timen loans which large
stock exchange operations require The
situation thus insures, in an exception
ally large degree, all the conditions essen
tial TO "bull' campaign of unusual pro-
portions.
At the moment, Wall street is waiting
the action of congress upon the currency
and the tariff. This attitude, however
is due more to q disposition TO take brief
respite for rest and observation, than to
any apprehension that the settlement OF
those questions may disturb public conf
dence. AS TO currency legislation, it is
felt that, in any event, the present rela-
tive abundance Of currency will take care
of all monetary wants for some time TO
come; while all the symptoms forthcom-
ing from the Washington committees indi-
cate a favorable prospect that ways will
be found for supplying a sound and elastic
form of bank currency in such measure as
the business Of the country may require.
On this point, there is at least no disturb
ing misgiVing.
The general tenor Of the tariff bill to be
reported by the committee on ways and
means at the opening of congress is now
very generally understood. It's purport
has certainly not tended to confirm the
fears that had previously been enter
tanned among manufacturers. In respect
to raw materials, 1t makes important
transfers from the dutiable to the free
list; which can only bo regarded as "a
valuable gain for certain large industries.
Contrary TO commOnigeneral expectation,
the changes Of duty on manufactures ex-
press a liberal Interpretation of Mr. Cleve-
land predictions in favor Of modeadte
reductions. and the extravagant demands
of the democratic doctrinaires are for the
most part disregarded. The element of
protection in the tariff is certainly
reduced, but it still, as rule, seems to
remain protective; except possibly TO a
class of manu- -cturers who are not we'll
equipped for competing with home pro-
ducers even. IL is true, there are intima-
tions that this unexpected moderation
has been adopted as part and parcel Of a
policy OF eliminating the protective ele-
ments through a series Of successive re-
ductiOns Of duty; but it is needless 20 bor-
row trouble from that contingency for
in the first place it is remote, and in the
next the common sense of the people may
be safely left to decide what shall or shall
not be done after this experiment. So far,
therefore, as the tariff issue is an element
affecting confidence, it seems reasonable
TO hope that we have probably already
seen the worst effect it is calculated to
produce.