The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-06-12
BANKER cLEws, VIEWS.
The Financial Outlook as Seen From
Wall Street.

New York, June i0.-During the past
week there has been an improvement in
the tone Of business in Wall street,
mainly consequent upon the formal in
timation of President Cleveland that he
will assemble congress In September
next. As the President indicates that
the express occasion for congress meeting
three months in advance of the usual
time is the financial arrangement con
sequent upon the silver act OF 1890, IL is
to be presumed that he will urge the re-
peal OF that law, with such other legisla-
ton as that action might seem TO call for
The languages Mr., Cleveland in an
nouncing his purpose can leave no room
FOR doubt that the administration ear
nestly favors the suspension of silver pur-
chases. The fact of his determining to
coll an extra session also affords "A pre-
sumption that he has reason TO hope that
congress will receive favorably his recon-
mendations, 1t is claimed to be GER
tain that the Senate finance com
mittee,-a majority of whom have
heretofore been free silver men-now en-
braces safe majority who favor repeal
of the Sherman act Of 1890, and that those
senator's have so assured the President
1t seems reasonable to assume that the
effects Of that act, now so patent In the
distrust, financial DISCRIMINATION and
failures throughout the country, must
have brought many pro-silver representa-
tives to reconsider their attitude on the
question; and that therefore seems to be
good reason to hope for a satisfactory re-
suit of the special session
Thus far, the effect of this official inter
vention has been not only negative, In
staying the further progress of the pre-
vailing Generalization, but also positive
in restoring confidence in considerable
degree. The effect in the specially dis
turbed districts Of the west is especially
important. At Chicago, there has been
complete cessation Of the run of depositors
upon banks and savings banks, and bust
ness there is resuming q comparatively
normal aspect. OF course, the public
have, from late experience, come to re-
gard the effects of our silver laundering
as so Fundamentally important that they
are unwilling to be entirely satisfied with
hopes of those errors being corrected,
and 1t may consequently be expected that
credits will be kept within conservative
limits until the actual meetingof congress
reveals some tangible indications of the
prospect.
The Presidents action has had con-
spicuously favorable effect upon our in
terests in the foreign financial markets.
Az London, our securities have shown q
distinct response, which, however, has
not yet had It's full effect on prices, sim
ply because New York failed to respond
Immediately and equally 20 chat improve
ment. The effect upon the foreign ex-
changes has also been very apparent
Although considerable shipments of gold
had been anticipated for this week. the
amounts actually sent out have proved
to be comparatively light; and il
now looks as though the outflow were
nearing Its end The unexpected reduc-
fffrV,n p 1 l., ~ ~ a
rate Of discount comes in as an important
contribution to confidence for 1t not only
shows recovery of steadiuess In London
finance but Is favorable 60 the employ
ment of foreign balances at this center
and therefore to curtailnBent of the
foreign demand for our gold. Another
factor tending to the same result is the
large export movement In grain that has
set In within the past ten days,
which from all appearances Is likely
to assume still more important dimen-
sions. A point has been reached at which
spectators have neither the motive nor
the ability TO hold on to their large stocks
Of produce, and consequently engagements
for export have been made which will oc-
cupy all available ocean freight facilities
up TO the middle of July This may be
expected to settle the question of future
shipments OF gold, II 1t does not suggest
this center at no very distant day.
There can be no question that the with
holding of an enormous amount of prod
uce from its natural course Of export
has been one important cause Of the ex-
treme stringency of money at the interior.
Now, the forwarding of these products to
the seaboard is causing large drain Of
currency to the west, the Chicago
rate of exchange on New York
being 81 % discount, which will prove
a quick source of monetary relief In the
agricultural sections. OF course, one in
cident Of that movement will prove to be
a considerable reduction of the reserves
of the New York banks; but that can be
well afforded with the present large sur
plus Of cash over legal requirements and
especially as the same cause that is draw
ing money to the interior will correspond
ingly prevent the withdrawal Of gold for
export
Upon the whole. we take IL that the
situation has entered upon stage of
very decided intrinsic improvement, and
we anticipate that this recovery viii be-
come much more apparent with each sue
ceeding day for a prolonged period.