The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-03-08
BANKER CLEws' VIEWS.
The Financial Outlook AS Seen
From Wall Street.

The Financial Outlook As Seen
From Wall street.
New York, March 6.-Wall street has
waited with great interest for the Pres
ident's inaugural message, and has re-
served operations in anticipation of it.
It's contents were greeted with general
satisfaction, not to say enthusiasm. The
document was regarded as, in all re-
spects, a moderate, conservative and
statesmanly utterance, well calculated
to bespeak public confidence. On the
money question the message, in general
terms. and yet Enthusiastically, supports
the sound money sentiment of the coun-
try. With reference to the paper money
branch of currency reform, the message
is not explicit, but can hardly be con-
strued otherwise than as favoring
course of treatment in harmony with
the conservative views of representatives
of the commercial and financial commu-
mites On the tariff question Mr.. McKin-
ley favors the procurement of all the
additional revenue needed from duties
on imports. Taken as a whole, the mes
sage is a valuable contribution towards
strengthening the revival of confidence
that has everywhere set in.
During the past week. an important ne
gotiation has been consummated here
which has the appearance of having been
Influenced by a motive of that kind
syndicate consisting chiefly of foreign
bankers here and in Europe on Tuesday
agreed with the Lake Shore and Michigan
Southern Railroad Company to take fifty
millions of 100 years 12 per cent. bonds
of that company at 1929, the proceeds of
,ryffo oh To ha Cd 70 he 10
of the companys z per cent bonds matur-
ing between 1898 and 1903. The significance
of this transaction, In the connection
above indicated, is that a considerable
portion of this issue is expected to find
permanent resting place among European
investors. AT the same time, such a large
negotiation at so low rate as 3 7-16 per
cent. net is calculated 10 affect favorably
the credit of our railroad bonds in other
countries.
An event which is attracting some in
terest in Wall street Is the adoption of the
gold standard by Japan, upon the basis
of 80 Is weights of silver to / weight of
gold, the silver being valued at about
the present price of silver bullion. AS ia
pan has been losing her gold by export
for many years past, her present stock
is comparatively small. She may there
fore be expected to require probably not
less than 600 TO SG0000.O00 of the yell
low metal 10 eStaDllSN the new coinage.
AS the change is to be effected gradually,
It's importation win probably be also done
gradually.
Only this week, It is reported from Lon
don that Japan contemplates sending sill
yer to the United States, which, of course,
would mean in exchange for our gold. The
metallic reserve'-almost entirely silver
held against the paper circulation ranges
from 100000 to 90.OOOOO0 of yen (or 40 20
80 per cent. of the outstanding notes.; and
Il would seem that all OF this, being mac
tive money, could be spared for the pro-
curement of gold. This operation is to be
regarded as tending 10 exert a steady
pressure upon the European money mar
kets for some time 20 come. Alongside Of
this eastern demand for gold, we must ex-
pect to see a European outflow to Russia
In connection with the readiustment Of
her currency system, and with her loans
for the construction of the Siberian and
Chinese railroads.. that demand. however
is likely TO be felt first Of all in Paris.
These facts seem to foreshadow a consid-
cradle eastward drain upon the European
gold stocks. with an obvious future effect
upon the rate for money. Their immedi-
ate bearing. however Us less obvious.