The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-01-16
The Financial Outlook as Seen From
Wall Street.

| BANKED CLEW s VIEWS,
The Financial Outlook as Seen From
Wall Street.
New York, Jan. 14-In connection with
the prospects of silver legislation report
comes from Washington that an attempt is
being made 20 effect a compromise by a re-
turn to the coinege Of 50 600, 900 per month
the situation existing previous to the pres
emit Sherman law. 1t is not however, inn
probable that some such halfway measure
may be introduced, nor that it might gain
considerable support from the numerous
party trimmers in congress-. at first sight,
such reduction of the purchases might
| seem better than continuing the full present
| amount; but what would be still better
would be a suspension of the present
silver act for at least one year. Nothing
short OF some such action, Until satisfactory
international cooperation Is secured, can
meet the demands of the present exposed
situation. 1t has become very grave
question among competent judges whether
we may be able, under certain circum-
| stances, to keep our currency at par in gold,
with the present law continued: and il il
the misgiving on this point that has caused
the recent timidity in the higher financial
circles. This doubt is much more pro-
nounced in Europe than among ourselves
in our foreign financial relations might not
result from strengthening and perpetuating
these doubts. Our press, our leading inan-
cial opinion, and our delegates to the Brus-
sells conference have given Europe to under
stand, In very positive terms, that if
Europe rejected international free COIN
age, we should promptly stop our
purchases OF silver and throw
upon other countries the whole onus
OF our new supplies Of the metal. Europe
has dstled our challenge; and no sooner has
the act been done than we Legin to talk of
doing half Of what we have threatened.
Such course would wholly discrediu us
with the European governments and place
us at an incalculable disad vantage In the
renewal of negotiations this year agreed
upon by the conference. Moreover, the
difference between our professions and our
performances could hardly fail TO renew
the distrust Of foreign investors in our
securities For 3 compromise of the sort
suggested would be tantamount to a con-
fession that we have not body of public
sentiment strong enough 81 protect us
against the dangers connected with our
silver situation, and our virtuous professions
would be treated as merely 30 much IRE.
sponsible brag. The danger would therefore
be no trifling one OF Europe repeating the
process of sending homo our securities.
under which we have been so severely tried
All buc lhSJ LWO HG6Ths ouCu a POSSIBILITY
is a matter not to be lightly treated. The
same sort of influence has deprived us OF
one hundred millions of gold since the
passage Of the Sherman act; and il we were
to continue still winking at the dangers of
trihing with silver money. our folly might
easily cost US another hundred millions
The situation would thus be made worse ct
both ends; ii we continue TO increase our
stock OF silver and decrease our stock Of
gold. Until Europe is ready to unite for
the maintenance Of International free coin
age-the prospect of which seems far from
hopeful-our position before the world
must be that OF mo more silver" and be as
firm as a rock
One very manifest effect of the Brussels
conference has been to cause European
finenciers to take a much more serious
view of the silver situation, as respecting
their own countries; and the main fact con-
ducing to that result appears to have been
the plain intlmations Of our delegates that,
IN the event of the conference failing of any
definite result the United States might be
expected to suspend the purchase Of silver
The effect of this is seen In large curtail-
ment Of acceptances by the London banks,
in connection with England's foreign trade,
especially with India. A representative Of
the Rothschilds, in addressing an influen-
tial meeting In London, expressed the fear
that, in the event Of the United States
stopping their purchases of silver, the In
dia government would find IL necessary TO
aba ldon the free coinage OF silver.
The fact that, largely owing to these
causes, the rate of discount in the open
market at London Is 1s4 per cent. is in
favor OF the New York money market and
ought to tend toward restricting our ex-
ports of gold, whilst IL may have some CON
nection with the somewhat liberal demand
for our securities which still comes from Lon
don The danUarOus COpdifiOr Of Eraurb
politics. and the possibility that the govern-
ment or that country might seek diver
sion from domestic troubles in a war with
Germany, are also possible factors Of much
importance; which, though they might at
first derange our foreign exchanges, vet
would ultimately create a demand for our
investments; and especially would this be
the case should congress suspend silver pur-
cheses. That Is the hinge on which, more
than anything else, turns the possibility of
serious financial complications in Europe
and the certainty of the situation in this
country being protected against any serious
difficulties.
Fortunately, our own investment market
barring the "industrials"-is in a sound
and strong position. The supply OF good rail-
road stocks is exceptionally low; few new
issues are being put out, and the amount OF
recent issues and second and third-class
railroad stocks seeking buyers has rarely
been SO light. At the same time, the gen
eral prosperity Of business may be expected
TO afford the support OF good investment
demand. It is mainly owing TO these fac
tors that the current raids of the "bearsn
produce so little effect upon prices and that
they are followed by quick reactions
But Notwithstanding these favorable feat
ures 10 the situation. the delicate position
of finances and politics in Europe and the
undecided fate Of silver in this country give
rise to many uncertainties and suggest the
wisdom of prudence as applied to large
speculative transactions. It is apparent,
however, that there will be buoyant mar
ket during next week at least.