The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-04-25
BANKER CLEWs' VIEWS.
The Financial Outlook as Seen From
Wall Street.

New York, April 22-Affairs in Wall
street show no marked changes from the
conditions noted in our advices of last
week. Comparatively little long stock
has come on the market and the bears"
have found that. though prices yielded
under their attacks, they quickly recov-
cred upon their attempts To cover their
sales. Among holders, there is a firm
undertone, but no disposition to force an
advance under existing unsettled condi-
tiOns. The floating supply of stocks held
on speculation appears to be conservative
IN amount, and as a rule the holdings are in
strong hands. As usual, the weak
points appear principally in the ''induS-
triaI' group, among which something
Is constantly occurring to suggest
doubts, While investors give them wide
berth. The signing of the anti-monOpoly
bill by Gov. Flower is regarded as
strong blow at such of the comb iues' as
arc operated within New York state.
Railroad securities, though relatively low
in price, are steadily gaining in status.
This is due partly to the continued slow
rate of new construction and the consc-
quent relative curtsilment of new issues
OF this class of investments; partly to the
nope that congress may in some way
alleviate the pressure OF the interstate
commerce law and authorize pooling and
partly to the coming la sc and prottab BILE
traffic connected with the worlds fair; at
the moment, however, there is not much
disposition TO buy them on speculation,
owing to the unsettlingof confidence from
external auseS.
The weak point in the market continue
to be the gold movement, about which
there is still much uneasineSs. The thing
especially feared is not any real trouble
IN the treasury finances calculated 10
seriously affect the government credit.
Wall street has no misgiving that the
United States can suffer from impairment
of public confidence or from any inability
TO take care of all and every form of its
obligations. 1t knows too well what
the resources of the government are
and what is the worlds estimate
OF them to fall into such narrow miscon-
ception. The thing feared is that the re-
serves of the banks may be so drained by
the exports of gold as to compel a fur
thcr reduction of loans ana discounts and
consequent selling of securities held on
speculation. This latter possibility is 50
real that it would be folly to belittlc it.
1t is seriousness of this possibility that
makes downtown interests so anxious
that the government should sell an
amount of bonds in Europe sufficient
either to arrest the export of gold or to
bring back some of the large amount we
have exported. Whether this desire viii
be gratitied remains 10 be seen.
The latest advices from Washington
indicate that Secretary Carlisle is dis
posed 20 shape his financial course upon
principles so as to afford no special con
oideratiOn for the immediate interests
represented on the stock exchange. From
such semi-Official intimatiOns as are forth
coming, the secretary appears to be dis
posed to suffer some considerable impair
meut of the 800, 000,0 600 reserve rather
than issue bonds. 1t is not to be gainsa4d
that a reserve is intended to
be made available and not to
be mere warning dcad-line:
and that one of its uses is to provide for a
temporary abnormal emergency. when
there is reason to expect that, upon the
adjustment of the transient irregularities
the funds will flow back to the treasury
which have been recently forced out.
The verdict of public opinion would be
that Of applause in the event of the free
gold fund recovering its normal dimen-
siOns even though it be by adding $25 ,0OO,-
600 to $50 000, 900 to the public debt by a
bond issue.
The secretary appears to expect from
the banks a measure of support under the
exigencies beyond what he has so far re-
ceived from them; and perhaps not with
out some reason. So far, the banks, in
meeting the export demand for gold, have
as far as possible avoided drawing upon
their own deposits in the treasury and
have preferred to demand gold for their
greenbackS and treasury notes of 1890, the
effect of which has been to drain the
treasurys own stock. Really, therefore,
the banks are largely responsible for the
present low condition of the gold reserve.
1t is not easy to conceive of a reason for
this course that will justify itself to public
opinion. In choosing this policy they have
not i'll any degree prevented the i'm
pairment of their reserves; all they have
accomplished has been to conserve the
gold portion of their lawful money
while diminishing the paper portion. If
the banks are to be understood as mean
ing by this discrimination that they dis
trust the legal tenders and feel it their
duty to hoard gold, at whatever risk to
the treasury, public opinion is not likely
to commend their prudence in declaring
such a demoralizing verdict. The silence
and inactiOn Of the associated banks seem
TO need some formal explanation if mis-
apprehension and possible serious mis-
chief are to be avoided. 1t has not been
usual for that powerful body of tinanciers
to lightly ignore the convenience Of the
treasury and the credit of the govern
ment in seeking to protect their own in
terests.
The export of gold during the week
has been very large and we still stand eX-
posed to more next week; neither have
the large imports of merchandise begun
10 decline, nor the light exports of pro-
'duce to increase-which are sources from
which material easing of the monetary