The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-23
BANKER cLEws' VIEWS.
The Financial Outlook as Seen From
Wall Street.

New York, May 19.-During the past
week, Wall street has found nothing to
lift it out of the prevailing inactivity.
For the moment, there are no conspicuous
influences calculated to stimulate large
buying; and that fact encourages the
bears" who by a succession of petty
cautious raids have been able to make
some slight inroads upon prices.
The market, however, still shows a firm
disposition on the part of material
holders to cling to their stocks until
Congress has removed the uncertainty
that overhangs all kinds of business. I'm
fortunately, although the Senate ap-
pears to be awaking somewhat to the
prevailing universal impotence at the
delay of tariff legislation yet the
end is not yet in sight, and the public
suspense shows little or no abatement.
Assurances are now and then
forthcoming that the vote will be taken
within certain near date. but such
promises have so many times failed that
they only make the future seem still
more uncertain, and operators are there
fore standing still in mortified Impotence,
but with no disposition to make any
sacrifices, for the reason that, whenever
the question may be settled and whether
the bill be enacted on defeated, there
must soon be a general release Of business
from its present suspension and depres-
sion.
There is some reason to believe that the
spring trade, however unsatisfactory, has
not been really so bad as might be in
ferred from the general spirit of com
plant. Impressions have been formed
from the smallness of the separate pur-
chases, and sufficient allowance has not
been made for the fact that the greater
frequency of transactions has in a meas
ure compensated for the smallness of the
amount of each one. Reports from interior
merchants indicate that, in the south and
west, better feeling prevails than at the
eastern centers, and the hope IS very gen
orally expressed that, with fair crops, the
fall trade will show a material improve
ment on that of the spring. In fact, gen
orally throughout the country, the ex-
pectation is that the business of the sec
ond half of the year will show a nota BILE
improvement on that of the first half.
Manufacturers are generally making
increased preparations for the fall bust
ness; but contracts are held in suspense
until the settlement of the tariff gives a
certain basis for fixing the future course
of prices. Already, prices are so excep-
tionally low as to afford a reasonably safe
basis for contracting for future supplies
and this fact makes manufacturers eau
tious about undertaking future commit
ments, as they deem 1t possible that,
when the suspense is removed, there may
be some recovery in values.
Even the most conservative observers
incline to the expectation that, when the
congressional distractions are remov
the revival of business will be compare
lively rapid, They reason at the r :
bound which follows an artificial res Jralnt
is always apt TO be vigorous, and attach
sr,f H., r
| enterprises waiting TO avail themselves of
the present abundance Of idle
| capital has, perhaps, never been
exceeded. The creation of new invest
| ments has been held in absolute check for
| now nearly eighteen months; not because
there is no room for them or no capital to
float them, but simply for the reason that
| confidence has been momentarily chilled
| by rearrangement of certain conditions
in our industrial affairs. IL does not seem
| reasonably proba Die that when the
| causes of this interruption of confidence
| have ceased to operate, these deferred
| undertakings will continue to wait.
Among the new enterprises at present
| held in suspense perhaps the foremost is
railroad construction. During late years.
| the additions to our railroad system have
been quite exceptionally light. Between
! the years 1880 and 1851, there was an in
average of 5000 miles per year. For the
! four next succeeding years, the annual
! increase averaged but $500 miles; and
| for the two last years the new construc-
ton has averaged only 1850 miles
! Judging from the past expert
! ence, the present very low rate of
! construction may be regarded as prepar.
! ing the way for an important revival OF
this form of enterprise; and it is well
! understood that in tho hfOhnys oiro1oc 81
! capital, ARRANGEMENTS for important un.
/ dertakings are already in the formative
stage. This is the more to be expected
! from the fact that the present low price
| of railroad iron and the decline in wages
afford an exceptionally attractive opportun
| ity. Railroads. at present costs of material
| and labor, can be built for much less thar
| paid around 1850. The temptation tC
! build new roads is, therefore, very great
besides which there are many existing
roads that need extensions and increased
equipment, while the growth Of the coun.
| try has created 4 demand for new lines
The undertaking OF works of this char
! acter would give an indirect impulse tC
! business at large and help the recupera-
! ton These are among the things or
/ which Wall street has it's eye in its ex
| pectation of an early revival of the hnan
| cial markets.
The money market is assuming q
healthier appearance. The loans show a
| steady and wholesome expansion, which
indicates better condition of both credit
and business and the exports of gold are
diminishing the unhealthy imitation of the
, cash reserves The gold that is going to
Europe helps to relieve the glut here
while it is stimulating foreign investment
in ways that will ultimately benefit
American interests.