The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-07-31
BANKER oLEws, VIEWS.
The Financial Outlook as Seen From
Wall Street.

W ali street
New York. July 29.-We have 10 record
another week of bear" ascendency and
weakness on the stock exchange. Under
/ the existing timidity there has naturally
! been a restriction to both investment and
! speculative buying, and the bears" have
! consequently had clear field for the en-
ployment Of whatever tactics seemed best
/ adapted to serve their ends. Fairness or
/ consideration for public interests was not
/ to be expected from such source. A full
/ bred bear is an ingrained and merciless
| destruCtionist; his natural element is
/ slaughter and ruin, and he never desists
/ from the indulgence of his malevolent in
stincts until he scents the approach OF
/ the avenger, when he is incontinently
/ swift and cowardly in his retreat. Up
I TO the middle of the week, these
marauders had full swing, and they
/ played their havoc virtually without
| counter challenge. The surprise created
| by the Erie receivership threw everybody
| off guard, and the occasion was SCI led on
| Wednesday for a concerted attack upon
the best properties on the list, with the
result of drop in prices ranging from
| To 9 per cent. The attack was so sudden
that no effective resistance was fOrthcom-
ing even in the case of the best protected
stocks; but, on Thursday, the sellers
| showed their appreciation Of their ex-
posture by a rush to cover their sales,
which was attended by general recovery
in prices, helped by free buying or
ders from London Considered as
a symptom, Wednesdays experience
was much less discouraging than
might appear at first sight
The view of the break taken by London
shows that that market understands the
nature of our situation and is not disposed
to take serious alarm at adverse turns in
prices. 1t is also a favorable indication
that the slump brought out no important
amount of long stock, which shows
that stocks are well held whilst the fact
that only one house succumbed to such a
heavy decline indicates that brokers are
in a sound condition. Indeed, il is a re-
maTkable fact that, during a process of
decline extending over some three months,
so few firms have seriously felt the effect
of losses. 1t means that there has been
little loose or reckless speculation and
that holders have been well situated for
protecting themselves. This is a circum-
stance that will tell for something when
the final turn in the market comes.
In the general monetary situation there
has been no very conspicuous improve
ment. The renewed demands by the
banks of the northwest have caused
fresh drain upon the banks of this city,
currency, though not with the effect Of
materially increasing the Stringency. The
fact is that the decline in the prices of
securities and the general contraction Of
commercial operations have so restricted
the demand for loans and discounts as to
largely Offset these limitations upon the
lending ability of the banks, and, there
fore, the money market has suffered from
these new Withdrawals of money only
indirectly, rather than directly
Certain results of the crisis are now
beginning 10 bring remedial tendencies
into play. The fall in prices of products
is opening foreign markets to larger
supply of our exports, and the decline in
stocks and bonds has brought out such
exceptional temptations to foreign in
vCstOrs as to produce a material change
in the foreign exchanges, and the current
symptoms consequently indicate prob
ability of considerable imports of gold.
In connection with this fact, il is for
tunate that London appears to Construe
fayOrably the chances of congress repeal
ing the silver-purchase clause of the
Sherman act. This expectation must be
regarded as explaining the recent steady
buying on London account. 1t is in every
way reasonable to anticipate that, in the
event of congress taking that action,
there will be an immense foreign demand
for our stocks and bonds that will put a
new aspect upon financial affairs
on this side the Atlantic and produce
a general recovery in prices Fortunately
both the Bank of England and the Bank
of France have now surplus of gold that
would prediSpOse them rather to en-
courage than discourage such a move
ment, RumOrs have been current that,
on the strength of the probabilities of
such legislation, negotiations have been
set afOOt for borrowing considerable
pr1 C1rrFf in / nd Iloya5
securities at their current low prices,
with view to bringing hither an amount
of gold sufficient to dissipate the prevail
ing decentralization We have reason to
believe that such a plan has been seri-
Ously deliberated in high quarters; but
no positive action seems vet to have been
taken; but even if such a scheme is not
made operative the desired result will
surely come about in the ordinary course
of the foreign exchanges. Already a
shipment of 81 100000 of gold is on its
way hither and more is expected to fol-
low
At the present moment, much depends
upon whether the extreme scarcity of
money among the banks of the interior
has reached its climax. When that point
is passed, little would remain to obstruct
the process of recovery. The stage of re-
cOvery viii be cOinCident with the return
of money from hoard to the banks; and
the strength and firm endurance of the
banks under such an extraordinary drain
suggests probability that the timid will
soon conclude that their fright has largely
exceeded any real occasion and win re-
turn their boards to the banks.
Under all these circumstances, we are
disposed to take a hopeful view of the
future course of securities and regard the
opportunity to investors as one of extra
ordinary promise