The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-03
BANKER CLEws' VIEWS.
The Financial Outlook as Seen FroI
Wall Street.

BANKER CLEWS' Views.
The Financial Outlook as Seen From
Wall Street
NEW YORK, April lin Wall street the
process Of recovery from the recent financial
arrangements and depressions is still main
tanned. The recovery is not rapid nor very
marked; but Ii is nevertheless substantial
ana real, and would be more 80 were it not
for the unsettliug influences Of certain 'fn-
dustriaI" properties, together with Read
ing. The former class are sub
ject to a severe scrutiny at the
hands Of lenders Of money, and a
cloud Is cast upon their future by the grow
ing hostility Of public opinion to every
form OF monopoly and the prospect that the
law will be enforced against combinations
much more vigorously than II has been.
These exceptionally situated stocks afford
material for bear" raids end keep the mar
ket subject TO surprises and reactions; but,
at the same time, these conditions produce
fluctuations in prices that are conducive to
speculative transactions.
Apart from these influences, the tenden-
cles are toward a better condition OF the
market. The railroads generally are in
satisfactory condition. and their prospects
are more than ordinarily encouraging. The
stocks OF produce awaiting shipment to the
seaDoard are exceptionally large, and the
break In the price of wheat indicates that
large tonnage of that staple may soon come
forward for export. Speculation has for
some months acted as blockade to western
traffic, and the indications are that the
pressure In the money market may soon
compel speculative holders to release their
grasp on western products and cotton and
set them in movement eastward.
20 he
profits OF the railroads is the early
opening OF several months OF travel con-
nected with the worlds fair, which will be
a valuable boon 10 the railroads of every
section, and not only 70 the trunk lines but
equally to their feeders. This year may,
therefore, be reasonably expected to prove
one Of unprecedented net earnings So far,
these prospects have had no other effect
upon prices than to partially check the de-
cline arising from the special financial
arrangements of the last four months; and,
therefore, the market stands in position
calculated to result in material improve
ment in the value of railroad investments
The market, however, cannot yet be re-
garded as safe against the Influences of the
deranged financial situation. That situa-
ton is steadily improving; but there are
contingencies which. so long as they remain
possible, must prevent complete recovery
of confidence. The money market, though
working into better state and likely to be
come much easier after April, Is, is still
stringent and unfavoTable to contracting
time loans. We have entered the season
when exports OF gold must be expected as a
matter Of course, ana 1t can only be con-
jectured what proportions they may assume.
The banks, however, will be 10 a better
position to meet it when the current OF
money from the interior turns this way, as
soon it will do.
There are, however, certain factors which
affect favorably the possibilities of any adj
verse outcome from gold exports. In view
of the abnormally large stocks Of export
able products, it seems almost inevitable
that our exports must materially increase
from this time forward; and, If the exports
should be proportional to the oversupplies,
the outflow Of gold might easily fall below
the usual average. In other words, as the
exports Of products have been deferred be-
yond the usual period and the exports of
gold have been correspondingly increased
for the last three months it is reasonable to
suppose, all other things being equal, that
during the next three months the merchan-
disc exports will largely take the place of
gold shipments.
Again, the approximations connected with
the low condition of the treasury gold re-
serve are fast subsiding. There ia no doubt
that the Secretary of the Treasury has
made arrangements through which he can
procure any needed amount of gold on inn
mediate demand, either from home or for
eigu sources; which disposes OF the posi-
bility of any further trouble In that
quarter. As. however. the treasury hold
ings of free gold" are increas-
ing and the revenues of the gov
eminent are unexpectedly large, the
balance of probabilities is against the treas
ury needing to get gold through borrowing.
Another favorable circumstance has arisen
in the evident disposition of foreign bankers
TO employ liberal balances at this center 80
long as the rate of interest remains so much
higher here than in Europe. This dispos-
tion is the more likely to continue from the
fact that the general conditions influencing
European markets are calculated to keep
large amounts Of capital out Of fixed invest
ment.
SO far as respects the foreign markets for
our securities. the prospect seems to be on
on the whole encouraging. At London
there has been revival of speculative in
terest in them, which is well maintained,
and the investment movement seems to still
balance in our favor. Evidently foreign in-
vestors are disposed to take favorable view
of the probabilities Of our suspending pur-
chase of silver 50 soon as congress
can deal with that question :; and that proba-
bility is strengthened by the fact that the
latest formal canvass OF the attitude of
members congress on the question shows a
stronger sentiment in favor of repeating the
Sherman act than has been supposed to ex~
ist
Taking the situation as a whole, we con-
clude that while it is not at present one that
warrants Oversanguine expectations, yet It
does warrant the expectation of a steady
Improvement in toue and an advance in
prices; but as the "bearsn are still wearing
their war paint reactions must be expected.