The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-05
BEARS ON THE RUN.
Henry CIevvs reviews the situation
in the Stock Market.


New York, Oct. BIN our last advices,
we intimated that the 'bear" element in
Wall street was losing its hold upon the
market and that prices were drifting to-
wards a rise which could no longer be
held waiting for the result of the Novem-
Der election. That forecast has already
been confirmed. Throughout the week,
there has been a steady and free buying
movement, with a considerable rise in
quotations.; and although some liberal
sales have been made to realize profits,
the market has taken the stock readily,
with only a transient yielding in prices.
This firmness has been followed by Lon
don, where prices have risen. and with
out any selling on New York either on
short account or to realize. This, how
ever, may not mean much, as London
holdings of Americans appear to be at
present exceptionally light
This upward turn is the more assuring
because it has successfully overcome some
new obstacles. The rates Of foreign ex-
change have advanced to a point at
which it no longer pays to bring gold this
way; and consequently there Is a cessa-
ton of engagements for importing the
yellow metal. 1t is true that this is only
temporary interruption of the movement,
abroad Of some ten millions about two
months ago, which absorbs the supply Of
bills for a few days; but all do not I'M
derstand this explanation and, for the
moment the market loses the exh Karat
ing effect of a continuous influx of gold
money upon our market. Also, another
visit of the platte Orator to this local
ity has revived the timidity of the need
lessly alarmed, though the sensation was
brief and enouragingly void of effect on
sound money enthusiasm. A yet more
serious element has been the cutting of
rail rates on the routes extending from
the lakes to the Gulf ports. This is a
matter of real consequence to the roads
serving the corn belt, which are threat
ened with the diversion Of an important
amount Of traffic from the Atlantic ports
Two extraordinary corn crops attended
with low prices, have largely increased
the European demand for that grain; and
II is therefore natural enough that an eff
fort should be made to secure this traffic
for the routes connecting with the south
ern ports. 1t is an illustration OF the
changes that are continually turning up
TO tempt the roads into concessions on
rates, and in this case the roads can
hardly be blamed for the spirited way In
which they are facing a new source Of
: competition. Outside the cutting" in
this particular section, however, the COM
panies are living well up to their agree
ments. and the Granger lines have little
to complain Of.
These drawbacks however. are but tenn
porary influences. The settlement for the
ten millions of sterling advances is ap-
preaching completion; and, when that
source Of demand for exchange has been
satisfied, we may expect a return to the
surplus Of bills over the mercantile de-
mand which has led to the imports Of
gold; for the excess OF exports over i'm
ports still continues with no visible abate-
ment; although, at the moment, berth
room is so scarce as to hold back exports
for which enga gements have been made
a fact which points to a prolonged favor
able balance Of trade. SO far as respects
the political situation, the prospect be-
comes more and more certain Of the de-
feat Of free silver in November, only with
growing probabilities that the adverse
majority will be so overwhelmingly large
as to place that issue beyond the possi-
bility Of resurrection. And as to the d.
version Of corn exports to the gulf ports
while it may cause some loss on freights
to certain railroads It will help others and
also will facilitate the foreign marketing,
Of our chief agricultural crop. the exports
OF which are likely to be unusually large
Great expectations are placed upon the
national sense Of relief that will attend
the expected triumph Of sound money
policy on the 30 OF November. The habit
Of excessive caution into which people
have been educated by the last three