The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-06-14
BANKER CLEws' VIEWS.
Resume and Forecast of the Sit
uatiOn as Seen From Wall Street,


New York, June 12-The course of bust
ness on the stock exchange, during the
past week, has been somewhat irregular.
The previous rise in prices showed liberal
profits upon large lines of stocks and
there was consequently a disposition to
realize. That feeling was also encouraged
by some uneasiness excited by supposed
friction in our relations with the govern
ment of Spain, and by bear" attempts
to create an impression that the ungenal
weather is having a damaging effect upon
the growing crops and especially on the
prospects of the corn crop. Under these
conditions, there has been a slight reac-
ton in prices, which probably would have
been greater but for the stiff support re-
ceived from London buying. Towards the
end of the week. there was a sharp recov-
cry of tone, and the market developed
considerable increase of activity with
quite a marked advance in prices
Brief realizing reactions are naturally
incident to such conditions as are now
shaping the market. The drift seems to
be towards moderate spasmodical i'm
provements, rather than continuous san
guine buying and an uninterrupted rise.
The conditions producing the recovery are
of kind that develop gradually; and it
is only after the lapse of a certain period
that their effects become conspicuous. The
result is that, although prices gradually
advance yet the market is kept in staid
mood conducive to the taking of moder-
ate profits, with the consequence of mod
crate reactions. Such a market is a safe
one to buy upon, provided the purchaser
gets in on the drops and realizes upon fair
advances; and present symptoms indicate
IL
characteristics for some time to come.
All the. symptoms continue to point to a
steady conservative revival in the general
business of the country. Perhaps the men
most closely in touch with the trade nerve
are the railroad managers and the bank
ers, and among those classes there is but
one verdict as to the business outlook.
1t is not merely that their information
leads them to expect a good crop year
with fair to relatively high prices for farm
products; they also report evidences of
preparation for a renewal of activity in
the industrial and distributing interests,
which they expect to find expressed in
decided revival of activity during the fall
months. This recovering tendency appears
to be less the result of any expected leg
islation although much is hoped for in
certain directions from the new tariff,
than from the fact that the long depres-
sion appears to have about exhausted its
effects, and the national vitality is begin
ming to assert itself. Much has been
said about over-production, and undoubt-
eddy we have very seriously suffered from
that cause; but that depression has been
greatly aggravated by a condition of I'M
der-consumption. With country of such
seeming fertility in every source of wealth
as ours. the usual movement is toward
a rapidly increasing production, which
carries along with it steady growth in
the ability to consume-to say nothing Of
the increase in wants that comes from a
yearly gain of millions in our population.
For the last four-score years, this natural
impulse toward a rapid general production
and consumption has been held in Sc
verest check by the silver panic, by the
labor troubles, by dangerous political ten
denotes and crazes and by declining prices
and a probably gradual excess of son-
sumption. In country like this obsta ,les
to progress cannot be operative forever.
To a large extent, they are cured by their
own effects. The Americans sanguine
temperament will not brook repression be-
yond a certain limit. Four years absence
of profits appeals to his courage and makes
him willing to take a risk Four years
curtaiment of his private OUTLAWS makes
him impa tient for increasing his earnings.
Influences of this kind are now having
their curing effect upon the bad times,
the trade feeling Is becoming more nor
NAL, and little by little manufacturers and
merchants are expanding their operations.
The extension of this process feeds trade
and It's impetus is gradually carrying us
forward into normal conditions. II is
mainly to this movement that we owe the
signs of commercial recovery, and close
observers of the current OF trade are look
ing forward to the next fall season for the
appearance of distinct advance toward
healthy business conditions. At present,
these tendencies appear 10 be most con-
spicuous in the west and southwest and
in the Pacific states; In the eastern states,
where conservatism Is more Influential
and over-supply has been most prevalent,
the recovery is least apparent The east
ern Industries are also held back by the
uncertainties connected with tariff legisla-
ton. When the pending bill has become
law, manufacturers will know the basis
upon which their operations are to be con-
Quoted. and then a large amount Of busi-
ness now held N suspense will be released
from restraint.
In wall street there IS an indefinite con-
seriousness that affairs are drifting In the
direction here Indicated The tendency Is
seen through a glass darky and there
fore has only partial effect upon the
market for securities. There Is plainly
much better feeling, but no active buying
IN anticipation OF the near approach Of
a really marked speculative revival. As
the prospect becomes more distinct the
Stock Exchange barometer may rise with
a bound. when a speculative boom win be
I'm order Between now and then / antic-
ipate no important reactions in prices.
cxcept In the case Of Unforeseen adverse
events. Of which there IL now no proba-
bllity In sight In the meantime. a steady
moderate upward movement IN prices
seems likely 10 occur
Nothing has happened during the week.
In The foreign markets calculated 10 ma
teriany affect afairs here The Turto-
Greek peace negotiations seem 10 have
ceased TO influence the current Of fnan-
cial affairs The sultan Us stubborn and
crafty, and the kaiser sun pursues OBJ