The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-06

might nave Decn reasonably anticipated.
In the nrst place, London spectators
were holding a considerable amount of
stocks bought at much lower prices; and,
in selling upon the Senate's vote, they
were only taking the same wise course as
our own Operators-Ln is. aking su. Q
OF their profits. That course had not been
expected, because London usually takes
its profits, after New York has real
lied; in this instance it was
wiser. In the next place, exchange
stands close upon the specie-importing
rate; and as further purchases by London
might easily start exports of gold 10 New
York, with consequent putting-On the
screws by the Bank of England, it may
have seemed more prudent TO first realize
and then buy back at lower prices. And
again; our suspension of silver purchases
raises some temporarily serious questions
tor London. That center has to face the
necessity of an international silver agree
ment or the assured certainty of the final
discardment of silver, with consequences
which Mr.. de Rothschild, as one of Great
Britain's representatives in the late silver
conference, declared, would be of very
serious financial moment, and especially
to England. One symptomatic effect has
already appeared in the absence of
single bid for 100000 rupees of council
bills offered on the lst inst.
AS the bearings of this change will fall
first aud more especially upon London, it
is not surprising that the Royal exchange
should show some caution about opera
tions that would tend TO draw gold from
the Bank of England. This caution, how
ever, has not prevented London from
buying our bonds, about 100000 in
amount of which were taken on Wedues-
day. Those transactions, however repre-
sent the investment demand rather than
the speculative; and, to that extent, they
are a legitimate expression of the i'm
provement of foreign confidence in
our investments, arising from re-
peal 1t is favorable indica-
ton that the Bank of England Odid
not on Thursday advance It's rate of dis
count, as had been expected, in face of the
fact that the rate of discount in the ope n
market was only 4 below the bank rate,
and that gold was being taken out of the
bank for export to New York. This looks
as though the bank managers saw nothing
in the repeal act, or in the situation
otherwise, TO call for any immediate pre-
cautionnry action. A few days more will
| bring forth more distinct symptoms of
what may be the effect upon London spec
ulative interests arising from the new
conditions this side the Atlantic.
1t would be a poor result of this great
effort of the American people to maintain
| a sound money system if it did not issue
| iii great revival of confidence in our in
vestments, not only throughout Europe,
| but also among our own people After
such widespread distrust, consequent
upon the dangers created by silver il CON
veYs an Unreasonable assurance for this
country that it had the wisdom and the
courage to take the decisive step that
settles for the world the question of
monetary standards and unifes the money
of the two most civilized continents. We
have not begun to realize the immense sig
nificance of this action. The unsettled sill
yer problem has been a standing threat
to finance and investment for the last
fifteen years. It's removal gives free
course to all that has been INSTRUCTED by
these misgiYings. IL is an assurance that
great enterprise extending far into the
future will no longer be hampered by
questions about the money of payment.
Its effect will be most important among
those who control the larger movements
of capital, which have so long been held
in suspense by this unsettled question of
standards. Capital demands the most
absolute assurance on this point; IL has
long and timidly waited for that assur-
ance and remained idle in its absence; it
now has all it can ask, and we may there
fore expect an era of revived enterprise
in great undertakings.
This revival cannot be expected to APP
pear Immediately. The first result of re-
peal must be renewal of confidence in
ordinary commercial and industrial Oper-
ations; which, however, will have bene-
fetal bearing upon wide class of invest
ments, and especially upon railroad stocks
and bonds. When accumulated capital
has had time for selecting its employ
ments and making its plans, we may look
for the larger developments of this new
element of confidence 1t is not too early
to look for buying of stocks in anbicipa-
tlon of these larger results. Wall street
looks far ahead and discounts the future
as far in advance as it can see into it, and
sometimes farther, It is not likely TO fail
to do so in this instance; and, from this
time forward, the larger and more intelli-
gent operators may be expected to include
these remOter benefits of repeal in their
estimates of the current value Of stocks
For these reasons, although there has
been already an important recovery in
the prices of stock, we do not think that,
in the majority estimate Of Wall street,
the full benefit Of the new conditions has
yet been discounted It is possible that
prices may for some time continue to
oscillate round the present level, afford
ing opportunities for profitable turns; but
the tendency for the long run is towards
further rise in prices. The new condi-
tions lay the basis for the growth of a
speculative movement assuming large
dimensions The tendency must be en-
couraged by the almost unequaled accu-
mutations of money in the banks, by low
rates of interest, by the contraction of
imports that is likely to keep the foreign
trade balance in our favor, and by a
steady increase in the earnings of the
railroads.