The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-15
BANKER cEEws' VIEWS.
The Financial Outlook as Seen From
Wall Street,


New York, May 13.-FOllowing the cri-
sis in the "industrials," the past week
has developed a series of after effects,
which have demoralized the general mar
ket and produced extensive realizing on
''long'' stocks and general instability of
prices.
Among those secondary results the fol-
lowing may be enumerated as the princi-
pal: a. A general weakening of margins
among speculative holders; (2D A more
or less general demand among brokers for
an increase of margins beyond the ordi-
nary limit; (3.) The Discrimination of
many brokers to take new accounts until
the situation becomes more set
tied; a. the closing up of accounts
where operators are unable to
keep up their margins; o. The indispo-
stiOn of money lenders to renew expiring
time loans or to contract new ones; (6)
The natural disposition of large and
strong holders to dispose of some of their
stock in hope of getting it back at lower
prices upon declining market; a. The
weakening of some brokers and the desire
of others to keep their customers Oper-
atiOnS upon conservative scale; 81 The
frightening of cautious operators out of
the market; and CO.. the disposition of
iudiciOus operators to realize on the
moderate rallies.
Each one of these after-effects has
tended to induce the extensive selling of
the past week; TO which has been added
the sensational effect arising from fail
ures and rumOrs of failures of firms and
banks, and a comparative cessation of
the London demand for our securities, be-
sides the discOuraging result of another
great bank failure in Australia. Under
these circumstances, the unsettled feel
I'M a hq al 1 10 ell 70
dustrials' is no matter of surprise. Cool
heads have anticipated it, and wise men
have held themselves prepared for it,
and hence the weakness of the market
has produced neither alarm nor despOnd-
ency. Among the conservative and well
protected class who always constitute the
backbone of the market, the present
phase is accepted as one of liquidation,
with,a that goes with it. No further
serious effects are expected from it; nor
is it supposed that the existing effects
will Immediately disappear. The state
upon which the market has now entered
is one of caution, conservatism, restricted
means and diminished numbers in the
rank of operators; and that means, for
some time to come, contraction of spec
uative transactions. Although it seems
safe to conclude that the worst of this
second phase of the crisis has been ex-
perienced, yet it would be a mistake to
conclude that it will be at once succeeded
by any buOyant recovery. Time must be
allowed for repair of the shock to conf
dence, for establishments, for the influx of
new capital, and for the appearing of new
conditions as a fresh basis of confidence
1t is to the latter factor that attention
will be next turned. There are new CON
ditiOns looming up that may reasonably
be expected TO produce a better feeling
| Our disturbed financial relations with
other countries have manifeStlY passed
their worst phase. The imports show a
declining tendency, which is likely TO be
still more marked at a later stage. The
exports, though still relatively light, are
| likely to be soon augmented through the
crop damage in Europe causing a foreign
demand for our large surplus Of wheat
! These changes may be expected to mate
rally reduce our liability to export gold
for the next few weeks. The subsistence
of the gold alarms, which have caused the
interior banks to Withdraw large amounts
of deposits from this city, viii have the
effect of causing those banks to re-
turn the funds; which will ease
the sulugency in discounts and mako
money more available for stock exchange
uses. With greater steadinesS in these
financial conditions, we may hope that
English investors viii begin to show a
preference for American securities over
the colonial issues from which they are
now so severely suffering Meantime. in
spite OF the quiet of business, the earn
ings of the railroads show very liberal
gains. In connection with the future Of
the ndustrials. it is to be considered that
the break down in their stocks has been
due entirely to the wild speculative iufa-
ton of their market price and not at all
10 the condition of their business and
earnings, which IS generally good.
fflf ,ials
due time. have their assuring effect upon
the market But. for the present the
only safe policy is one of caution. IL can
moi yet be positively assumed that all
weak spots in the market have been
eliminated: and until all doubt on that
point is dispeled, the true policy Of hold
ers is To- strengthen their ability TO keep
what they have rather than to materially
increase their load