The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-20
BANKER CLEws' VIEWS.
The Financial Outlook as Seen from
Wall Street.

4 AAb Il 4hdACAdA OubAOOh DIS seen from
Wall Street.
New York, Nov. 1S.-In the absence of
important visible factors, Wall street is
on the lookout for new elements affecting
prices The "bulls" have found some
support, during the week, in the improv-
ing earnings of the railroads. the symp-
toms of steady recovery in business, the
growing plethora of money, and the pros
pect of an early completion of the plans
for reconstructing the finances of some of
the great bankrupt railroads. The
bears are availing themselves of the lull
in speculation for forcing a reaction from
the recent advance in prices; but with
only moderate success, their great obsta-
Gle being the facility for carrying stocks
that is afforded by the abundancy of
money.
For the moment, however, the condi-
tiOns of chief interest center at Washing
ton Among these are the prospects of
tariff legislation and of measures relating
to the currency. So far as respects the
former, broad indications are now forth
coming as to the general scope of the
changes of duties contemplated by the
committee on ways add means; and they
may be regarded as being Of distinctly
assuring character When the committee
reports, the public verdict is likely to be
that the changes are much less radical
than has been generally anticipated. Con-
sidering that the existing duties upon very
large amounts of imported goods exceed
the strict requirements of protection, and
that most industries will receive impor-
tant advantages from putting their raw
materials upon the free list, it may be
conceded that the net result to the manu-
facturer, from the proposed changes of
duty, will be much less serious than has
been generally expected. And when to
this fact is added the further one, that
already the prices of raw material are
declining, and that wages have fallen,
and are likely to do so still more gener-
ally during the winter, we have a distinct
basis for a hope that the new light thus
thrown upon the situation may soon lead
to more or less resumption of work among
our stagnant industries.
Wall street naturally attaches a special
Importance to the matter of currency leg
islatiOn. 1t is generally conceded that, as
the suspension of silver purchases in
wolves a large stoppage of new supplies of
money, there is an imperative necessity
for providing without delay some other
form of circulation to fill the gap. There.
is no second opinion, that the only de-
pendence for that supply must be entirely
upon bank notes. But it is not clear, in
the light Of past experience, how we can
safely trust to the national banking sys-
TEN for any such increase of its issues as
the new circumstances would require.
The system of bond guarantee
has compelled contraction Of the issues to
less than half their former value and the
Off-repeated suggestion of authorizing the
banks to put out notes up to the par value
of the bonds is an inducement altogether
too small to bring out any appreciable in
crease in this form Of circulation. If it
no en- rod Iaf 40 8
guarantee be enlarged or some moro
elastic form of protection, the proposal
encounters the well-nigh conclusive OBJ
lection that the powerful opinions and
prejudices against such a radical change
of the national system would in
all probability be found to
defeat that resort for relief.
Under these circumstances, the proposal
to permit the issue of notes by the state
banks may receive q more or less serious
consideration at the hands Of congress.
PROFESSIONALLY. the state banks. with
their $500, 600 of capital, constitute a
source Of note currency of some import
ance. The thing to be determined, how
ever, before utilizing that resort, is
whether the notes to be thence supplied
could be secured in such a way as TO
adequately protect the noteholders and
insure their circulating always at par.
That is really the central question III this
problem, and Wall street seems disposed
to wait for what congress has to propose
on this point before determining its
verdict upon the subject of state bank
notes.
The stock market is in waiting atti-
tude. For the present the bears have
gained an ascendency which they seem
disinclined to relinquish. The tendency
towards lower prices has met with no re-
sistance from large holders: partly be-
cause some are willing to see lower prices.
and partly because others are unprepared
for any aggressive movement upwards
Wall street has not yet entirely lost the
pessimsm which the late panic created
in the business world. Commerce and in
dUstry are reviving, however, but the i'm
prOvement thus far is perhaps greater in
tone than in volume. Moreover, the
close of the year is approaching, previous
to which there is always period of stock
taking and intrOspectiOn that is unfavor-
able to the consideration of new enter
prises. In the mercantile world the
Usual inactivity to November and Deem
Der is being aggravated by the late panic,
and recovery Is delayed by an eXagger-
ated fear of tariff revision.
The trade balance Of October was
largely in our favor. exports having ex-
ceeded imports by $36, 100000 In Novem-
Der, thus far there has been a similar
JTGpOuutIduCt VI bh pOTbS. GnQef OrQl-
nary circumstances we ought therefore
to be importing gold freely, as was ex-
pected a few weeks ago; but only small
arrivals Of specie have been reported, and
the exchange market is still adverse to
any imports of consequence. From our
own standpoint, however, the situation is
steadily improving. If the after-effects
of panic are still visible in numerous fail
ures, small volume of business, etc. il
must be remembered that all these
drawbacks have been discounted
and that conditions are daily mending
Prices of commodities are universally
low, and supplies are small conditions
which cannot last without laying the
best sort Of foundations for a general re-
vival of enterprise. This revival will
come. 1t is inevitable. It may be de-
layed few weeks or months, and the
longer it is delayed the more certain will
be its pcrmancnce. Wall street has a
fashion of anticipating such movements
often long in advance of their occurrence:
and we shall be surprised if our leading
fnanciers and operators show themselves
less capable than usual in reading the
future.
The Arch Duke Franz Ferdinand Of Aus
tria, who recently visited the worlds fair. is
TO write q book on his Impressions Of this
country. He was here for about three weeks.
He is the sprg Of royalty who snubbed the
Chicago anglOmaniacs.