The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-07-24
BANKER oLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street

kets continue disturbed and excited. So
far as respects money, there has been
some Improvement; but it has been rather
IN the spirit prevailing among the banks
than in any increase in the funds avail
able for loans or discounts. From some
points, currency has been flowing inward ;
but the new disturbances at Denver,
Kansas City and St. Louis have caused
outward remittances that have probably
offset those gains. The banks, however,
are confident Of their ability to control
the situation and remain expectant of an
early turn in the current of affairs. They
attach no serious Importance to
the troubles among the far
western small banks, as it is
found that those institutions are gener-
ally in a sound condition aud may be ex-
pected to resume payment so soon as the
temporary panic among depositors sub
sides. The run on the Denver banks APP
peared TO be chiefly due to the exciting
harangues of certain local demagogues
ana silver fanatics, and therefore subsi-
ded on the sober second thought; while
there will remain the advantage of it's
weakening the pro-silver element in n-con-
gress during the coming debate on the
Sherman act. The silver states are hav-
ing taste of the fruits of their policy,
and will henceforth better understand
what that policy means.
The stock market has been unsettled
and widely tiuctuating The clears"
have summoned their whole force of at
tack employing every resource of rumor
and canard and assailing almost every
important stock on the list in detail.
With allies in London, they have also at
tackled our securities In the transatlantic
markets, causing heavy declines there
and London sales in this city. Their
forces have besu handled in concert and
with great skill, and some heavy declines
have resulted from large short sales,
from which however, there have been
quick recOveries upon purchases to cover
the sales The unsettled condition of the
London market and the bank troubles in
the west have encouraged the "bear"
side, and that they have not made q deep
er impression on the market is clear evil
dence of its intrinsic strength. Purchases
for investment are certainly on the in
crease, and boarded money is gradually
being turned into the dividend paying
stocks.
Quotations are low enough to Justify
large marginal purchases, but the diff
Guilty OF borrowing money on time at
present precludes such operations on any
considerable scale. The experience of
the past week, however, demonstrates
the ability of holders of the
leading railroad stocks to pro.
tect their interests and the "bears"
may find it prudent to moderate selling
that brings no profit. The general con
ditions affecting the market admit
the hope of a favorable turn in affairs.
Although general business is still suffer
ing, it is rather, however, from appre-
hension than from any generally unsound
pf "A M ~ pf fai \.
ures has been few compared with the
radical nature of the disturbance, and
those that have happened have shown an
entirely exceptional ratio of assets to lia'
bilities. AS a rule, there Is no serious
distrust among banks against commercial
paper; the restraints on discounts are
due to the difficulty of keeping up the re-
serves to the legal limit; and when the
scare subsidies and the now boarded
money begins to flow rapidly back into
the banks, there will be no difficulty in
the mercantile community getting all the
accommodation needed, and Wall street
will then get plenty Of time money also.
Thenew troubles among the western banks
have, for the time being, put a stop to the
reflux of currency that set in some ten
days ago; but, IN the absence of new out
breaks of that character, the movement
may be expected TO reappear. 1t is the
natural course of such disturbance as
we are now experiencing to be followed
by a lull, in which currency accumulates
in the banks and a period of extreme ease
now verging upon that turn in
affairs, and all that is needful to its ap-
pearing is a cessation of startling acci-
dents. The one thing, outside of the
needful silver legislation, that would,
above all others, hasten this recupera-
tive movement would be the return to
the banks of the many millions Of money
new being boarded by the savings banks
and other institutions. The continued
retention of this money from banking use
tends to foster distrust, and it prevents
the banks from assuming position Of
strength that would put a new face upon
the situation. 1t is purely a blind and
selfish timidity that is keeping this money
from use and thereby gripping the bank
ing resources upon which the whole cOun-
try is directly or Indirectly dependent
DO not the administrators of these funds
think it time they relaxed their paralyz-
ing graspi
The silver question has now but par
tial influence upon the course OF affairs,
for the reason that it is taken for granted
that all danger from that source will be
eliminated by the early action of congress
upon the Sherman act. 1t begins, how
ever, to be more clearly appreciated that,
following that action, something should
be promptly done to give greater elas-
ITCHY to our bank circulation. With
view to that end, recently suggested to
the controller of the currency that the
national banking laws should be so
amended as to admit of notes being issued
up TO the full par amount of the bonds de-
posited and that also the banks should be
permitted to issue further amount of
circulation up to Is per cent. of their sur
plus. The surplus funds over capital of
all the national banks / find now amount
to about $3.50, 100000; which would adj
init of issues of notes aggregating S172,-
O00,0 COO; which, added to the increase
that would come from the other suggested
source, would permit an increase of close
upon 800, 900 900 in our national bank cir
The backing of these notes, in
cash or its equivalents, would constitute
the most solid kind Of security, especially
as the funds would be placed under the
custody of the controller Of the cur
rency.