The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-07-27
BANKER CLEwS VIEWS
The Financial Outlook as Seen From
Wall street.

street.
New York. July 25.-During the mast
week Wall street seems 10 have rsaebs,
the acute stage OF the excitement con.
neeted with the silver issue 10 be fouebr
in the approaching elections. Unaues.
tionably, the situation is, at the moment
regarded here as Serious. The Chicago
convention has produced a deep impress
sion as TO the earnestness Of the south
and west In respect to free coinage. The
country has been taken by surprise also
by the revolutionary sentiment exDrsssa,
in the platform. A sharp shock at The
financial center is nothing more. In addi-
ton to a serious question of finance, the
situation now includes some political prob
lens new TO our people, exciting in their
nature ana calculated TO produce uney-
pected disturbances of confidence
The hrst feeling suggested by such a
concurrence Of circumstances is one ~
dlstrust- None of these things has been
anticipated or prepared for. and as win
all ill-Omened surprises the worst feat
ures and possibilities Of the case are chief
" or alone considered, and consequent
~ lhere Is general surrender TO a de-
gree or alarm exceeding any real ooo.-
sion. That is the stage of this political
disturbance through which Wall street is
now passing. The attendant unsettled
Keeling Is intensified by. the absence Of
definite knowledge as to how far the nro-
ceedings Of the Chicago convention repre-
sent the real feeling Of and sentiments
OF the people of the west and south Tho
intensity OF the declarations of the plat
form strikes the people of this section as
the hrSt note of a revolutionary pronun-
clamento; and thrown off their guard The
nasty and the timid resort to defensive.
measures which only increase the public
1lslrust. Ihls, however, is not the worst
iql
uation. There are professional specula-
tors VINO do not hesitate to turn appre-
henston into danger and thereby precIpi-
tate a great faI in prices. Others are at
lacking the position of the treasury by
exchanging legal tenders for gold. for the
purpose of increasing the public distrust
These are the kind of elements that have
been brought into play by reckless specu-
lators during the past week. The case was
made more serious by an unexpected in
crease-fn the exports OF gold, under which
the treasury gold balance fell below ninety
millions. That fact, together with increas-
ING uemorahzatlon on the stock exchange,
brought the banks to the rescue. On Mon
day, informal consultation among the
managers brought about an agreement to
replenish the declining gold reserve of the
treasury; and during the week $751; 900 Of
gold coin was pledged for exchange at the
sub-treasury for legal leaders to be paid
in as needed. This courageous defensive
action was an unmista kable expression of
the confidence of the banks In the situa-
ton and in the ability of the government
to maintain gold payments 1t is also evil
dence that the banks are satisfied that the
outcome of the elections will be to esta b.
fish the gold standard upon a permanent
basis. Some such action by men best situ-
ated to judge of the situation was the one
thing needed to help timid and pessimis-
TIC holders OF investments to hold their
own against their fears; and the course
taken by the banks has materially con-
frfh1IfaH FIa N..tsss4 9,,v,
hdence. It is much to be hoped that there
will henceforth be q cessation of boarding
of gold. 1t is that most unworthy form
or cupidity which seeks to enrich self at
the expense Of country. At present, there
Is no danger of gold. going to a premium.
except such as may arise from these very
attempts at boarding; for the banks will
certainly take care of the treasury. This
Is one Of the situations in which courage
is saving, While fear becomes danger. If
there are any Spectators deliberately
bent upon forcing gold TO a premium, they
must count upon bucking against the
banks of New York, Boston, Philadel-
phia, Chicago and other large cities; who
know good many ways in which such
gambling against the nations credit may
be made very improbable.
The enactment Of free, Independent 10
to / silver law would work out its own
destruction by the following means, even
Independent of others:
At the present time the Mexican silver
dollar brings in this country only about
81 cents in exchange for our silver dol
lar, although It contains a larger guam.
tity OF silver than ours does. 1t is simply
taken here at its commercial value, where
as the United States silver dollar goes in
Mexico in its purchasing power for two
OF their dollars. 1t is quite evident there
fore, II the United States government
should pass a free and Independent Is to
silver coinage law, the Mexican govern
ment would, If they are smart immediate-
a n n he fa1 80
dollar as the money of their country in
substitution Of their present standard,
and make it mandatory for all Mexican
silver dollars to be forwarded to the
United States mint to be converted into
United States dollars. The Mexican dol
lar, now only worth 81 cents, after beine
melted down by the United States mint
and coined into United States dollar,
would be worth double its present value,
have twice the purchasing power and
would carry as well a credit of cents,
that being the bullion value of the Mexi-
can dollar above the United States dol
lar
If this be possible for the Mexican gov
eminent, the European nations will be apt
scholars, and follow the example Of Mexico
IN the conversion of their silver money,
to which they hold 81, 800 000. 90 in amount
Ihey will want back in exchange how
ever, our gold, of which we have $780,
100000 altogether in this country. which
viii only provide, for 80 1-3 per cent. of their
SINer nolulngS, and to get that amount
they will have to be quick to act so as
to capture it before It goes into other
channels. The competition for our $780,
100000 of gold would beat everything on
record. The race would be with the swift
SO far as respects transactions in secur-
ities we counsel our friends to follow mod
GRAFTON in their operations. Already prices
nave fallen much below what the facts
and probabilities of the political situation
warrant. Speculation based on political
factors and political manipulation is es-
pecially uncertain and the present tenden-
cy seems to be towards the market falling
under that sort of control.
DOCTORING UNDER DIFFICULTIES,