The morning news. [volume] (Savannah, Ga.) 1887-1900, 1898-06-06
BANKER CLEWS' VIEWS.
The Financial Outlook as Seen From
Wall Street


The Financial Outlook as Seen From
Wall street.
New York, June 4.-During the past
week. affairs in Wall street have contin-
ued to exhibit the features of activity and
buoyancy that have characterized opera
tons since the opening of the war. The
large local operators are now in evidence
as holders of heavy lines of stocks, and
the outside public are well represented. The
close official censorship over war news has
diminished the influence of that element in
speculation, with the fortunate effect of
centering attention more fully upon the in
trinssc factors bearing upon the value of
railroad and industrial investments; and
current operations therefore largely follow
normal considerations. The steady ad-
vance in prices has, on some securities, es-
tablShed scale of values which affords
an inducement to realize, and this is caus-
ing some changing of sides among opera
tors. But the still growing ease in money,
the increasing facility for making long
loans and the confidence shown by the
banks in Stock Exchange collaterals, prove
an important source of confidence among
holders, and realizers find ready buyers
upon moderate concessions. The market
however, has reached a shape at which it
would not be surprising il some of the large
operators were found willing to encourage
lower prices as a basis for repurchases.
But while keeping this possibility in view.
u is not TO De lost sight of that events
may happen in connections with the war
that would have an important effect upon
values; and that probability is so decided
that IL Is. not likely to be disregarded. All
the facts in the situation point to the prob
AFFINITY OF an early crisis in the struggle.
what SPANS financial needs are may be
inferred from the fact that the govern
ment has commissioned the Bank of
SPAN TO borrow 1,000,Oo0. pesetas $780,
CvVO0O on per cent. bonds. The bank
itself appears to have virtually discon-
unued its advances to the treasury, and
a severe run for the redemption of its
notes IN silver threatens il with suspension
OF specie payments, when its notes would
fall TO ruinous depreciation. Under such
conditions, what prospect can there be of
negotiating the proposed loan? If the peo-
pie have come TO dstrust the bank and
demand the liquidation Of it's notes. what
prospect is there of their lending to the
government? And if the proposed As could
be marketed, what would be the receipts
from the loan? The existing As sell at
about one-third of their par value, so that
could a new issue be marketed at shout
the same price-which is highly improba-
ble-the proceeds would be only some $685.
100000 in silver, or less than half that
amount in gold AS a contribution to the
costs of such a war as Spain has under-
taken these results of the loan would be
ludicrGusly Inadequate; and from that
point of view who could be expected to risk
their money on such venture?
1t may safely be taken for granted that
the loan will prove an utter failure; and
if money is not to DE had, the war must
quickly end. Thus Spain is as mucn
threatened from her own bankruptcy as
from our armies and fleets; and it seems
inevitable that these difficulties must re-
suit in an early peace. Beyond these en-
barrassments, Spain is threatened from
home discontents and dynastic factions,
from dear Dread, and from the utter dis
trust of the government that must come
when the people learn the truth about the
war operations so utterly falsified to keep
down public discomfort.
These underlying facts are fraught with
possibilities that may any day result in the
complete breakdown Of Spain and the
declaration of peace with all the fruits of
victory in our hands! When that comes
who shall say what may be the limit of
the rise in securities?