The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-03-06
BANKER oLBws VIEWS.
The Financial Outlook IS seem From
Wall Sire ~

ne FlnHnclal outlook IS seem From
Wall sire ct.
NEW YORK. March Affairs in Wall
street are In an entirely abnormal condition.
me value OF Investments is IN only a sec
oadary sense regulated by intrinsic condi-
lions. Outside influences Of an extraordl-
nary character are the controlling factors;
and as those Influences are OF a titful. I'M
certain and even serious character they are
producing considerable decentralization and
afford unusual opportunities for the attacks
OF bear" Spectators.
The virtual disruption Of the Reading
combination and the placing OF that com
pany again in the hands Of receivers has
been serious addition to the delnoraiza-
ton arising from the external influences
above referred to. To a certain extent it
has been shock TO confidence in railroad
securities, for 1t shows that, in spite of the
unquestiOnable Improvement ia railroad ad-
mtnistratiou within late years, there is still a
danger of large companies being plunged
into embarrassment through the unbal-
anced ambition of managers to undertake
extensions and responsibilities for which
their resources are inadequate. The down.
fail of Reading has injuriouslY affected
wide range of properties which have be-
come in one way or another Involved in
Mr.. McLeod's schemes of annexation, and
this fact magnines the effects of the adverse
influences with which the market is having
Co contend.
The sensitive state of feeling thus pro-
cuced very naturally spreads TO other kinds
of securities which do not enjoy the full
confidence Of the market. A large pro-
portion of industrial" scrip must be ranked
In that exposed class. The value OF those
issues Is as yet very violently fiuctuating.
The 'industrials" are, at the moment, the
really weak point In the market, But for
this factor and the apprehension of more
active money, the feeling would be much
more bouyant than it is; for, In respect to
the general run Of legitimate investments,
there is a general concurrence Of opinion
that, intrinsioally, they are in a healthy
condition.
The monetary arrangements, TO which
the present unhealthy state of the market
is mainly attributable, show little OF no i'm
provement The official statement of the
country's imports for the month Of January
has occasioued some surprise. Contrary
to common expectation, the imports OF
merchandise were S21 ZOO, 600 in excess of
those of last year, while the exports show a
decrease of S33, 900, 600; the net result being
that the first month Of 1898 exhibits an OK
cess OF $4,000 600 Of imports over exports.
while last year the exports exceeded the inn
ports by $37, 10000 These facts show that
the large exports Of gold since Jan. are
much less due 70 the special demand for
gold from France and Austria shan has been
generally supposed; that. in fact, the loss
of gold is more due To causes connected
with commerce than TO the widespread
monetary arrangements that are inducing
foreign banks TO rePlenish their stocks of
gold. This is not an entirely unwelcome
conclusion, for irregularities in commercial
movements are usually followed by corS
responding reactions. and it may quite DOG
sibly turn out that the prospective exports
Of gold, ordinarily incident to the spring
months will he diminished by the excessive
outflow Of the last two months.
The depleted condition of the treasury
gold balance still hangs threateninRly over
Wall street. The strange thing is that the
banks should be go backward in coming to
the relief of the government. In reality,
the trouble seems simple one as to its cause
and by no means difficult one as to its
remedy. The situation has arisen from the
fact that in the ordinary course of business
as between the treasury and the banks the
treasury has come to hold less chan it's usual
amouu6 of "free gold,n while the banks
have corresrondingly increased their
holdings OF that metal. Since this
accident in an entirely normal
drift of exchanges has brought the treasury
close to an infringement upon pledged re-
serve of gold which would injuriously affect
the public credit, what real objection could
the banks present TO exchanging say S25,-
900, 600 OF their extraordinary stock of gold
for an equal amount OF United States notes
held by the treasury9 The transaction
would involve no really obiectionably reduc-
ton of the peace specie portion of their re-
serves-which is now Gbuudant-whilst il
would place beyond doubt the legal tenders
which are threatened by the low
condition Of the treasury free gold.n
The legal tenders received by the banks in
this exchange would answer all this purpose
just as we'll as the gold with which they
parted; the treasury would be put in a
strong position; and all the talk and need
less alarm about the government being in
danger of suspendtng gold payments would
vanish. 1t is passing strange why the banks
should hesitate to take this simple remedy
and prefer TO compel she government TO
issue a loan, which, after all, would have
TO be taken by gold drawn out Of the banks.
The banks Of the seeboard cities are uu-
wisely mourning u serious responsibility by
needlessly prolonging a needless agony
through an uugenerous dog-in-the-mange
policy.
ROCKY FORD FACTS.