The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-13
BANKER CLEws, VIEWS.
The Financial Outlook as Seen From
Wall streat

The Financial Outlook as Seen From
Wall street
NEW YORK, Feb. 1.-THE many impor-
tant factors favoring tia value of securities
are still prevented from having their due
effect upon prices by the tinidity excited
by the position of the silver question, the
continued large exports Of gold, and the
depletion of the treasury gold balance. IL
is still uncertain whether the present session
OF congress may consent to suspend the
operation of the Sherman act; and the
anxiety on this account is increased
by the revival of report-at
first disoredited- TO the
President-elect a willingness to support If
necessary a compromise that would re-
store the Bland act; which is regarded as
being, on the whole, worse than allowing
the Sherman law to run until its effects
compelled its suspension at least. While
there is no certainty, perhaps not even q
fair probability, that the Sherman act will
be Immediately repealed, the treasury stock
OF gold is diminishing and at the same
time circumstances point 60 a continuance
Of exports Of gold. The net stock of
| gold coin and bullion in the treasury
fell from 1921, 100000 on Jan. l to
| SOS, 200,0 900 on Feb. /. A further
loss of $4,000, 000-which might but too
| ports of specie and from the Strengthened
| revenue resources of the treasury
sink the treasury gold reserve below the
| 500 ,000, 900 requirements. In view of the
/ scramble Of the great European banks for
| gold, we can have no assurance that such an
inroad on our gold stock might not arise.
! We are thus verging very uncomfortably
| close upon q condition In which the treasury
might find it necessary to sell bonds, and
| that is a matter not to be ignored.
| The current of gold movement in Europe
| compels US to look these posi- bilities squarely
in the face. The Austria Hungarian loan
| Of S25, 600 600 for establishing gold pay
ments is already virtually contaminated,
| which means the immediate withdrawal OF
that amount Of gold from other countries
into boarded idle reserve. A bill has
| been introduced into the French legislature,
| which is expected TO take early effect, au-
| thorizing the Bank Of France 20 increase its
note issue by 800, zoo, 900, the main object
contemplated being to enable the bank TO
increase its stock Of gold by exchanging It's
| notes for it. Moreover, Germany will
soon be in the market with a new
| loan for military purposes, whilst
| the long-deferred Russian loan is
expected to be soon negotiated in Paris, with
the effect Of subjecting the continent to
drain of gold into Russia's war chest. These
| operations, happening at period when the
I
bankers to augment their stocks Of gold are
not TO be lost sight Of. Coming at a time
when we have already been largely depleted
| OF gold and when the treasury resources are
lower than for many years past and when
| its gold reserve is thus exposed to over
| drawal, the least that can he expected is
| that congress should strengthen the morale
Of our own finances by the repeal or sus-
| pension OF the Sherman act. And
it is TO the last degree urgent that
| Wall street should SEQ to 1t that
no blame shall rest upon the fnan-
cial metropolis fer any failure Of congress
to adopt that course. Congressman are not
| f1nanciers; very few Of them understand
even the elements of economic princi-
pies. II is therefore due from these men of
| finance that they should plainly and en-
! phaticallY exhibit to congress and the coun-
| try the dangers of the situation, and that
demonstration should be made through a
| great public meeting at an early day. That is
| Is a voice that would command attention and
be respected; and the fact that it,has not yet
been uttered may we'll be urged by con-
gressmen in extenuRtion OF their apparent
| lack of appreciation Of the real seriousness
Of the situation.
The wild fluctuations in the. 'industrialn
stocks, whilst giving activity to the market,
are producing demorallzed feeling. Snoh
! violent changes are suggestive Of anything
rather than intrinsic value in the stocks
themselves, and seem TO imply that the
originators and managers in these corpora
tions are far more concerned in making
money out of Illicit speculation than by a
conservative management Of their prop
| critics.
The negotiation Of the supporters of Rich
mond Terminal with Messrs. Drexel &
Morgan for the reconstruction of that COM
psny, has had reassuring effect upon the
market. A readjustment OF that great mass
Of disorganizstiOr by almost any means is
consummation far preferable to
the continuance Of the present state
| Of affairs. One of the things
most needed in our vast railroad
system, is the establishing Of order and
rational relations between the multitude Of
disconnected and badly managed roads Of
| the south. Such reformation becomes far
more possible when the Richmond and Dam
vile is put upon a safe and enduring basis !;
and the contamination of that work would
be the signal for rearrangements among the
southern lines that would not only increase
the earning capacity of that group of lines,
but would also materially promote the de-
velopment of the industries Of that section
Of the country.