The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-04
BANKER CLEws' VIEWS.
The Financial Outlook as SEEN From
Wall Street.

The Financial Outlook az Seen From
Wall Street.
New York, June 2. During the past
week, Notwithstanding the interruption
of holiday, there has been distinct
improvement in the tone of business in Wall
Street. Its main expression has appeared
in the covering of shorts which has
created a demand favorable TO prices
while it implies that the bears" have
discovered symptoms that betoken com
ing recovery in the market. The most pes
simistic acknowledge that the passage OF
the tariff bill, viewed as an end of suspense,
would have an important effect in the
restoration of general confidence: and the
present situation of the measure in the
Senate is generally conceded to be favor
able to its final enactment some time
during the current month. This view
seems to be taken in business circles
generally and is having its effect in a
more hopeful feeling, though not yet in
any marked change in the volume of
mercantile transactions. Wall street is
quick to perceive this new tendency, and
its bear contingent shows its respect
for il, and hence the improving tone we
are able to record.
The introduction of the bank note ques-
tion in the House is attracting much in
terest in financial circles. Though, for
some time, it has been regarded as an i'm
pending issue, yet as its introduction at
this sitting of congress has not been ex-
pected, it has not been counted as factor
affecting immediate interests on the stock
exchange. The question, however, is now
fairly raised for treatment, and can
hardly fail to become an important fac
tor bearing on the future investments.
Its discussion opens with mere proposal
to restore to the state banks their for
mer ability TO issue notes under the eX-
isting banking laws of the several states,
through repeating the existing tax
of 10 per cent. upon cir
culation uput out by them
but the bank circulation question
is such a broad and burning one, that
narrow scope. 1t lies at the basis Of any
plan of currency reform that preLends to
deal successfully with the inconsis-
tencies, weaknesses and dangers that
surround our present monetary arrange
ments. Whether it is sought to keep in
check the still remaining drift toward
silver imitation, or TO defeat the tendency
in certain sections toward fat money, or
to relieve tho national government of the
EN- barrassments growing out of q stand
ing demand Indebtedness of $500, 900, GOO, 90
all them combined there is
no feasible way of accomplishing
these objects except through a very ma
terial enlargement of the possible issue of
bank notes This will soon be acknowl
edged to be the real scope and the chiel
significance of the bank note question; IL
therefore cannot fan, from this time for
ward, to attract profound interest in
Wall street circles. In view of the great
- f.l. la
bank note must in future occupy it be-
comes vital question-what shall be It's
nature, authorization, guarantee, and tc
what regulation shall il be subject
These are questions not to be lightly dis
posed of, and their consideration NAV oc
cupy more time than those now raising
them in congress seem TO con.
template. Three cardinal questions
will center around these points
N) how far shall federal and state
powers respectively be recognized in the
construction and administration of the
system? (2) shall the guarantee consist OF
bond collateral. following the precedent
of the national bank act, or shall it be
provided by pledge of the entire assets Of
the bank. with special liability of the
stockholders added and (3) what ar
rangements shall be provided for securing
ready, economical and efficient redemption
or the notes, when their volume is super
huous? So far as this legislation affords
a reasonable hope Of its providing a
wholesome settlement OF the currency
question, it will prove most valuable
contribution toward the strengthening
of confidence in every form of Investment
The export of gold continues without
abatement. If now appears that this eX
traordinary outflow is chiefly due TO tbs
preparations of the Austrian government
Tor the restoration of gold payments iol
although the contracts with bankers foi
supplying the GOLD have been long made
il seems that the actual delivery of the
metal has been largely deferred until il
was required for the act Of resumption.
The various reorganization schemes
now in progress will ultimately have al
important bearing on the market for the
better. AT present their progress is slow
because of opposing factions and the de
pressed condition of railroad ira die. But
these are only temporary difficulties
which will quickly disappear with any
improvement IN business In this con.
nection it will be well to keep in mind
the recent unanimous decision Of the
Supreme Court of the United States
limiting the power of state rail
road commissions and prohiOit
them from putting into effect unfair aud
unprotita Bile rates. This is one Of the
most important decisions affecting rail.
roads announced in many years for some
states had been so severe and arbitrary
in their restrictions that they practically
amounted 10 confscation of property, al
least so far as profits were concerned.
These facts should be remembered by re
organization committees, for the reason
that they materially affect the earning Of
profits by some of the embarrassed roads