The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-27
BANKER CLEWg VIEWS.
The Financial Outlook as Seen From
Wall Street.

4uo Z lnhncial OUTLOOK as seen FROM
Wall Street.
NEW YORK, Feb, 25.-The disagreement
between the doctors Of finance as 70 the
proper treatment Of the monetary disease
has attracted good deal Of attention and
excited some acrimonious criticism; but the
differences of opinion do not appear 70 have
aggravated the malsdy, which seems
destined to run its course and cure itself.
The doctors seem to have disagreed mainly
because each side had its special purpose to
serve-the purpose perhaps being
In each case allowable, but in neither
legitimately all-controllng. The reasons
ostensioly assigned by the Secretary of the
Treasury for declining to sell bonds to aug
'nenH his gold reserve were not without
force, but probably the uneXpressed but
most real cause was the unwillingness Of the
administration to signaize the close Of its
term by what might be construed as an in
direct admission that the finances had been
allowed to drift into an exposed position.
The bankers had very practical and q very
! important motive; namely, to apply a form
OF remedy that would most distinctly en-
phaslze the necessity for an immediate
repeal OF the Sherman act, which has UNI
questionably been largely Instrumental in
compelling the country to give gold in
exchange for at least 500. 600 900 Of securi-
ties held by foreigners who we're alarmed at
the dangers connected with our sill
yer policy. 1t Is open to dues-
ton, however, whether the banks. in
seeking to get before the country this en-
phatio protest against continuing the gov
eminent purchases of silver, did not invite
very undesirable consequences from other
.fr,rr hon &c NC h1
sold on the home market, the transaction
would involve O reduction in the reserves Of
the banks equal to the amount Of the bonds
sold, no matter whether they were paid for
in gold or United States notes; while, so far
as they we're paid for in the latter, the
treasury would be draining the banks and
yet failing to get gold for its bonds These
are hardly results that the banks could de-
sire, especially as their reserves are now ex-
ceptionably low for this season of the year.
Moreover, such a transaction might but too
easily be construed in Europe as indicating
much more serious condition of our
finances than really exists, the natural re-
suit Of which construction would be TO
stimulate the withdrawal of foreign bal
ences resting here and 20 brighten foreign
holders of our securities into realizing upon
them-bOth of which would tend to increase
our exports of gold. 1t is true, the banks
might reason that, if the treasury were to
offer its bonds specifically to the banks, the
latter could take them on condition that the
gold received for the bonds were returned
10 the purchasing banks on special deposit
and that the bonds were returned to the
treasury as collateral for those deposits
This would no doubt prevent the contrac-
ton of reserves referred to, and it would
also be very neat way, Tor such banks as
might be fortunate enough TO get the bonds,
to virtually make per cent. upon reserves
which would otherwise lie idle. But this
method of turning public misfortune into
bankers advantage would not help to mol
lily the popular prejudices that already so
embarrass the national banks, nor would 1t
be sure to meet with public approval; and
this may have been one Of the secretary's
reasons for standing out against the issuing
of bonds urged upon him by the banks.
Although the free Roldn ia the treasury
still remains very uncomfortably low, vet
the drift appears to be toward a steady re-
covery in the government holdings. The
customs receipts are liberal; the treasury
January Payments Of interest have bee
completed; the foreign exchanges sho
an easier tendency there Is a.
abatement in the demand for gold
for export; and, with the more set
tied political feeling in Paris, the
Bank Of France may be expected to soou
relax It's extraordinary purchases of gold.
And, moreover, we have now reached
the season when the gold balance
of the treasury almost invariably
begins to gain for a series Of mouths.
Under these circumstances, there is reason
TO hope that the uneasiness caused by the
condition Of the treasury will henceforward
abate and generally more hopeful condi-
tions prevail. Should this turn not come so
quickly as might be desired 1t seems reA-
sonable to assume that some further mod
A. 80. 49,. ~
treasury of gold for legal tender notes would
probably be found to be all that is required
to bridge over the interval between the
present Nud the complete return of conf
dence.
These disturbing influences are having
their natural effect upon securities, and es-
pecially on stocks. Since the failure of
both the Senate and the House to suspend
the purchases Of silver. the effect on Wall
street has beon very manifest; and at Lon
don also less interest has been apparent in
American shares, the demand having CEN
tered upon bonds made expressly payable in
gold. 1t seems OUT of the question to ex-
pect any sound recovery of confidence on
the stock market until it hes become certain
that the governments will cease its purchases
OF silver at a comparatively early day.
Without that there can be only
distrust; and the more uncertainty
on that point increases the more
distrust will grow. Fortunately, there
is no want Of belief anywhere in the dispo-
sition Of Mr.. Cleveland to use all his influ-
ence with congress to bring about the re-
peal of the Sherman law. The only thing
to be spprehended is that the President
elect may choose to defer that action until
good measure has been matured for pro-
noting enlarged issues of bank notes. It
would seem possible to give satisfactory
assurances that legislation on bank currency
should follow as quickly as practicable after
the sherman act had been repealed, in
which case it should be possible to enact the
suspension Of silver purchases at a special
session in the spring.