The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-09-04
BANKER c1Ews, VIEWS.
The Financial Outlook as Seen From
Wall Street.

Wall Street.
New York, Sept. 2.--During the past
week the financial situation has under
gone a marked improvement, and not only
at this center, but throughout the coun-
try at large The bank statement of Aug.
26 showed that. upon the weeks average,
the reserves Of the banks remained So
$50, 600 below the legal minimum; but the
actual deficiency, at the end of the week,
was probably not over 4OO0,O0O. Since
the date of that statement, about Sll,-
600, 600 of gold has been received from
Europe the major portion of which has
gone into the banks; and the receipts of
money from the interior have probably
sufficed to Offset the shipments thither,
while the sub-treasury has continued
to be debtor at the clearing house.
Thus whatever may be the show
ing of to-days statement based
upon averages, there can be little Ques-
tion that the banks hold, at the end of
the week, an amount of lawful money in
excess of the legal reserve requirements.
This has naturally produced more con
fident feeling among the banks, and
though they are not yet materially eX
tending their loans or discounts nor re-
firing certificates, yet they are getting
affairs into form for giving the public the
benefit of their improved condition at an
early day. Everywhere the interior
banks are getting into better shape.
Many of those that have suspended are
resuming business; and banks drawings
upon New York have fallen to nominal
dimensions. The nearby country banks
are appearing again as buyers of merCan-
tile paper, which is a significant express
sion of returning confidence among
very cautious class of lenders. The saw
iugs banks have informally considered
the propriety of Offering TO repay
deposits the withdrawal of which
has been notified but seem to have
preferred to wait until the expiration of
the thirty days notifications. The thirty
day period terminated this week, the re-
suit being that only ten per cent of that
| class of depositors withdrew their money.
The notifications for withdrawal at the
! end of sixty and ninety days are being
Cancelled. 1t is thus clear that it would
| be quite savfe for the savings banks to
make the suggested offer of prepayment;
| and that fact suggests probability that
| these institutions may soon begin to re-
| turn more or less of their cash funds to
the custody of the regular banks. The
| dealings in currency have virtually ceased
| and the premium upon it has disappeared;
| which is evidence on the one hand of the
cessation of boarding and on the other of
| freer disbursements in money at the
| DdilhS. lIlb IOI6SOluE ldCbS duOIu bIlG
| best possible evidence of the return of
monetary and banking affairs to an APP
| prOximately normal condition @
| The great event of the week, and the
one which more than anything else has
contributed to this important recovery,
! has been theOverwhelming vote of the
| House of Representatives against any in
| crease in our silver currency under the
| Sherman law. That is an immense gain
! towards future confidence. 1t means
| that, under no circumstances, will this
| country tolerate any loose experimenting
| with this form of money, but will insist
upon it as a fixed policy that gold shall
| be the national standard. This restores
to the national credit n rock foundation
| that will save it from such shocks as it
| has lately sustained. 1t also carries the
| advantage of dissipating the doubts
among foreign holders of our securities
| which have sent home probably Sl50,000,-
| 900 of them. since the Sherman act
| took effect Mondays vote, carry
! ing with it the certainty of
like action by the Senate, has
! been followed by a steady stream of buy
| ing orders for stocks and bonds from Lon
| don, Frankfort, Amsterdam and Paris.
| The extent of these purchases may be In
| ferred from the fact that, although some
| SD. 000, 900 of sterling bills borrowed sixty
| days ago have matured within the week,
| vet the rates of exchange, instead of be-
| ing thereby adversely affected have been
weak and verging on the specie-impOrting
| point. 1t IS to be presumed that in
Europe, Sas well as at home, there is
among cautious investors disposition to
| defer buying until the solution of the sill
yer question is placed beyond all question
| by the vote Of the Senate. IT is there
fore to be expected that further pur-
| chases on foreign account will be forth
to l..
This common advance out of the
'slough of despond' has revolutionled
| the tone of feeling in Wall street The
| first effect was a rush to cover "shOrt"
| sales, and the next a return to the street
OF class with ample means for taking in
| bargains. 1t has been in the best sense
week for the bulls who now are once
! more in control of the market But for
the occurrence Of two great cyclones
within few days with vast destruction
of property and the interruption of tele-
graphic communication with all parts of
the country, the effect would have been
still more marked; it has resulted, how
| ever, in a general advance of several
points iii priceS.
The market has now reached point at
which it may be expected to be sustained
by a steady and continuous improvement
in the conditions that influence values.
AS confidence spreads through business.
our interrupted industries viii resume
work, depleted stocks OF merchandise will
be replenished, and the catching up of
three months of lost trade will cause a re-
viving squirt of activity. This commercial
recovery will show its results in in
creased earnings Of the railroads, and the
whole country will return by a steady and
sure process, if not to a normal activity
which is too much to expect so soon after
such utter prostraton-yet to a moderate
and conservative movement. Such a
change carries with it legitimate reasons
for rise from the present very excep-
tionally low prices of securities, and we
therefore commend to our friends the
policy of buying upon all drops in quota
tions.
REPEAL OF THE SHERMAN LAW.
The Action of the House Has Helped
the Price Of Cotton.
In their latest circular Hubbard, Price
& Co. say: