The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-24

The Financial Outlook rs Seen Prom
wall street.

Wall street
New York. Aug. 22.-Anairs IN Wall
street are working into a more normal
condition. The recent abatement OF the
extreme fright over the silver agitation
promises to be permanent; the panicky
tendencies seem 70 have exhausted them
selves.
These are great ameliora don; but here
new obstacles intervene to ohstruct the
improving tendency that might otherwise
be expected. The present drift Of the
money market creates some uneaslness.
The hank statement Of Aug. Is showed a
surplus OF reserves OF only S9.f0001O over
legal minimum. At the same date Of 1855.
the surplus was Sfl. 10000, and In 1885,, $50
500 0m. To some extent. this low condition
OF the banks cash IS due 70 the exports
of gold during late months; and there is
perhaps reason to hope for relief from
this same source, the foreign exchanges.
For the seven months ending July 81. the
net export of gold from the whole co1ln-
try was S26,672O00. which Is SlASl0.O10 more
than the net shipments for the same
period OF 1885 This is clearly an ahnor-
NAL movement; for the exports of mer-
chandlse Including silver for the last
seven months have exceeded the Ike class
OF imports by 500 O00,o00-a balance which,
should have put the gold movement IN our
favor rather than $685. 200 against us. es-
pecially as the net movement in securities
between this and other countries has not
been materially against U.S. II at all. Ii
is well known that large sums OF gold
were obtained from this center for con
tinental remittance to Russia, oUtsi3, the
usual course of exchange. Those opera
tions however. went TO the creditor side
OF our international account, and. there
fore, may, sooner or later, be expected
to either increase the amount of gold TO
be RENTED hither or to diminish the sum
to be exported by us. In all probability
these Irregularities have yet to be
Strengthened out, and IL would not be sur
prisng should we see within the next few
weeks an important refiux Of gold from
Europe. The sudden development of weak
ness in the exchange market and the fact
that the syndicate Of exchange drawers
have not found IL necessary to issue any
bills under their special arrangement
seem to suggest early Importation of the
metal. the more so as rates are already
close upon the point admitting Of a profit
on sending il here.
Arrivals of 100000 to 100000 Of
gold would not only put an easier COM
pleXion upon the local money market, but
would help to strengthen confidence in
the gold situation. In any event, our for
eign trade movement is drifting into a
en- months of the current calendar year.
the exports of merchandise exceed those
of the like months of 1895 by $4,000, 600,
whilst the imports show a decrease Of
Si3 100000; which shows our account with
the rest of the world to have been in a
better condition, for the last seven
months, by over S100OOOOOO than
it was for the same period of 1895.
This is the result of a series of reactions
from various abnormal conditions and It
can only have the effect or materially
strengthening our financial relations with
Europe.
Should the election result in the choice
of a sound money President and House of
Representatives, this wholesome situa ton
of our foreign relations is likely to be fur
Their improved by "a revival of the foreign
demand for our investments upon a con-
siderable scale and by a general improve
ment of American credit abroad. 1t is
therefore, no violent straining of the prob
abilities of the situation to hope for a state
of things which, before the close of 1896
may materially add to our national stock
of gold. Should that possibility ne realized
two important results would be gained In
the first place, the influx of gold would
materially strengthen the reserves of the
New York banks; and, in the next place
with an enlarged supply of gold, it would
become easier TO place the treasury in a
condition that would exempt il from the
continuous drain of gold for export which
has embarrassed it since 1S93-the condi-
ton which above all others is needftll to
the restoration of foreign confidence IN
our credit and investments. Amid so
many uncertainties az surround the pres
emit situation, / venture no predictions:
but, at the same time, a fair interpreta-
ton of symptoms and tendencies now COM
ing into view suggests a probability that
the two closing months of 1895 may witness
a recovery in the financial situation, which
at present is not anticipated. In the pres
ent condition of the money market, these
tendencies may not afford a sufficient rea-
son for any free buying of securities; but
they do present a very substantial reason
why holders should decline to realize I'M
der apprehensions of trouble to come