The morning news. [volume] (Savannah, Ga.) 1887-1900, 1899-02-06
BANKER CLEWS' VIEWS.
The Financial Outlook as Seen From
Wall Street


New York, Feb. 4-The high range
of prices for securities has had another
week of test, but with no very marked
results. except that the market has be-
come hesitating. There are appearances
Of certain large professional operators
having done considerable realizing; and
that factor may account for some declines
In those stocks which have advanced most.
These operations have naturally caused
some shrinkage In the volume of business
at the exchange, the sales for the first
four days Of the week having averaged
So6,0O shares per day. compared with an
average of 1,444,0O0 shares for the CORE
spending days OF last week This sort of
reaction from the previous high tension of
the market was no more than was to be
expected, and the fact that IL has not been
greater may be attributed to the presence
OF an extraordinary outside element.
which is ranged almost entirely on the
''bull' side. That class of operators seem
to be more than usually flush of means.
and their sanguine estimate of the market
INDUCES them 10 stick to their holdings
with tenacity.
Taking the stock market as a whole.
however, 1t appears to me that II has
reached stage at which conservatism is
In order. The prices of the higher grade
stocks have reached an unprecedented ele-
walton; and even If the improved finances
and prospects of the roads have warrant
ed a considerable rise. IL is to be remem-
bered that the public have not yet become
accustomed to this extreme advance and
are not prepared to regard the new quo
tations as permanent. II u.s. however. of
some Significance in this matter that prac-
teal railroad men are the strongest
'bulls' TO be found, and that they are so
on the intrinsic merits of the railroad
situation. They have not passed through
the severe trials OF recent rate cutting
without learning something. Managers
have been driven to economy I'm operating
expenses and have made Improvements in
plant which will enable them to carry
freight probably at lower rates than have
ever been known. These outlays have.
for the moment. absorbed earnings which
might otherwise have gone to the stock
holders, and in this way some dinppoint-
ments have arisen In view of the large
gross earnings; but 1t is an eminently wise
and conservative employment of income
and will put the roads in a position for
increasing their future profits, while at
the same time giving the public the ben
efits Of low charges for transportation.
The money market presents no new fea-
lures Of importance. Borrowers find an
abundance of money for all legitimate
purposes and there Is nothing to indi-
cate a probability of higher rates for
some months to come. The principal fac
tor tending to prevent a drop In interest
rates Is the disposition of the banks to
discourage any disturbance OF the large
American balances now resting at the Eu-
ropean centers. The foreign banks seem
to have more use for these funds than
we have, and TO bring them over here in
the shape Of gold would have the effect of
depressing the New York rate for money
and advancing the European rate; until
the demand here becomes more active 1t
is therefore the natural policy for our
local banks to do nothing calculated to
bring money TO this side the Atlantic.