The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-05-01
BANKER CLEWs' VIEWS.
The Financial Outlook as Seen From
Wall Street.

New York, April 20.-The gold question
still continues to be the main factor af-
fccting Wall street interests. President
Clevelaud's firm declaration that the pay
mcnt Of all government obligations in
gold shall be maintained under any cir
cumstanccs had an assuring effect at
least set at rest one serious uncertainty,
and that had the tonic result of bracing
up the stock market and checking the at
tacks Of the bears, ~ which were bocom-
ing daily more vigorous.
AT She moment, the prCpOndCrant dis
position Is to rest and wait. There are
so many matters affecting the situation
and the carly future that cannot at pres
cnt be estimated that both sides on the
market hesitate about committing them
selves to large transactions. A hcsitat-
ing market is always a duh one; and, if
the uncertainty becomes protracted, it
may easily become yielding one.
The intrinsic features of railroad sCcuri-
ties are decidedly favorable to holding
though hardly to be considered as war
ranting free buying under the prevailing
decentralization. The ''industrials" are
still suffering from the distrust arising
from the unnatural conditions upon which
they rest and which must stand against
their acceptance as investments.
new element has appeared un-
favorable to speculative buying. A
certain dullness almost amounting to de-
precision has come over the merchandise
markets Partly, it has arisen from the
late excessive importations of foreign
goods; partly, from the prospective tariff
legislation having made distributors dis
inclined to carry larger stocks than are
absolutely necessary; partly, from
n in 4
mand for goods; and partly from the
growing stringcncy in the loan market
having compelled some contraction OF
credit operations. Any important change
IN this condition of things is hardly to be
expected until congress affords some def
mite indications of what is to be the new
scale of duties. Until that point is
reached manufacturers and merchants
can only be expected TO run their business
upon the hand-to-mouth principle and re-
lief from this sort of obstruction may
hardly be hoped for meanwhile
Tho reconstructions and consultations
going on in certain important groups Of
railroads may soon enlarge speculative
operations
The crop prospects are as vet too unde-
Veloped to constitute a factor of influence
And yet, little later, very much must
depend upon that feature in the situation
Should the prospects as to grain favor
another good crop either at home or
abroad, the holders Of the present
immense visible supply would be
likely to throw their wheat upon the mar
ket, and through that a large relief from
the heavy exports Of gold might como. On
the other hand, with prospects of light
crops, our large cXportablc surplus would
probably continue to be tenaciOusly clumg
to, and the exports OF gold would be cor
respondingly augmented. The same line
of reasoning applies TO the cotton trade.
The gold situation remains virtually
unchanged since our last advices There
has been some Abatement in the amount
Of specie going out, but requirements for
export may still continue for some time
longer, although on a diminished scale,
and little real relief can be expected until
the speculative blockade in the exports
Of produce is broken. The efforts to
find relief through some sort of arrange
ment between the treasury and the
banks have thus far developed nothing
practical. The relation between the banks
and the government is becoming better
understood, and the conviction gains
ground that there is no cause for alarm.
The government, if fairly dealt with by
the banks win have no difficulty in main
tanning its reserves and paying all its de-
mand obligations in gold. To borrow
ing gold by the issue OF bonds there is the
objection that it needlessly establishes
very undesirable precedent. TO an ex-
change Of bank gold for treasury legal
tenders, there should be no serious obiec-
ton it simply makes the treasury the
disburser of the banks gold for export,
instead Of they themselves performing the
operation. 1t seems as though the banks
can hardly afford to allow the demoraliz-
ing admission to 60 out before the world
that they or the government are unable
to meet any drain of gold TO which they are
likely to be subject; and the conviction is
gaining ground that neither can
they afford to persist in a course
which shows them ready TO drain the
treasury stock proper whenever it may
suit d temporary purpose Publico opinion
has become very sensitive about the
steady drain upon the treasury reserve
which the banks have been indirectly
enforcing, and signs indicate that this
policy may be soon tempered, if not aban-
doned. If the banks will let the import
ers of goods and the exporters Of gold
have all the gold they want, daylight will
then dawn upon the situation.