The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-22
FINANCE AND COMMERCE.
MONEY AND STOCKS.


Taking a retrospect of the year much will be
seen which deserves study. The first three
months, while apparently prosperous, were
marked by a feverishness in trade and specula-
ton which from this distance would seem
sufficient warning to observing man. In
April the premonltions of local trouble were
felt, and the fear of crisis caused a calling in
of loans which brought considerable pressure
on the money market Our blessings are some
times well disguised, and this very pressure, by
forcing tho sale of grain and provisions, saved
many dealers from heavy loss. While wheat
and pork products were very high, the markets
were so strong that overcautlous men distrusted
their first impressions. The great break IN
prices did not affect the dealers who confined
their operations TO the legitimate Had this
class been larger it would have been we'll I'm
fortunately, the past prosperous years had fos-
tered spf; of speculation; equally 50, our spec
ulators were possessed Ct both nerve and eredlt.
Margins were kept good until the loss was
enormous. In July, the withdrawal of deposl1S-
from the sus pected banks had reached a point
where signs of weakness were shown. This IN
Tenefed the pressure on the money market, and
the August crash left financial affairs in posi-
ton from which they have not yet recovered.
Taken whole, the year has been gloomy; the
wholesale trade has felt the effect of country
speculation and Overtrading; manufacturers
nave carried over large stocks and have been
an horrea "a by the slow collections incident to
/ We're certainly below the average;
ron and grain men have faced de-
prOportiened losses TO the Yolpme-0f
business; bankers lave 6een COM
selfdefense. to pursue the most
-. and conservative of policies; insur-
n have met with losses large
W., ~ ggregate; the retail trade has con
on oiO1 q, 18th a cold spring ant a warm
= the CHI - s,s,, leu WIN p,ultso i,ter
OF KlsI ete-psiced residences have been built,
prop,.aa%, leaving out fancy prices, cannot De
sold Vi'rices which seemed very low last fall
The present could not but be time of caution
and fear. Merchants are restricting credlts;
manufacturers running on short time; railroads
have light freighis; insurance men are likely TO
be placed i'll a position which VIII lest the
strength of their pools; bankers, while the high
rates current for money Will make GOOD snow
OF earnings. are carrying large reserves and dis
count with reluctance; real estate men are dong
little or nothing The retail trade ls Sood as IL
should be at tAis season.
The future would seem to us to warrant eau
ton. The approaching annual settlements cam
not but develop many new failures. With the
peculiar state of financial affairs IN this
section; with short crops and the
large lookup of floating capital in build
ing, manufacturing aud other enterprises, money
will almost certainly be close aud high all win
ter.
There is an uncertainty regarding the action
of ongress on the tariff, railroad legislation and
the silver question which makes new ventures
hazardous
Unless this Con gress provides new basis for
national bank circulation, we will have to face
a large contraction in the currency of the coun-
try. 1t is startling fact that some S200,000,-
900 of the national bank notes are based on
per cent. bonds which are being called at the
rate of $40, 100000 per month. The plans sug-
gested vary, might be expected. 1t is to be
hoped that Congress will give the matter an at
tentfUn which will dew eloP a relief both prompt
ana comprehensive.
Then, too, 1884 is n presidential year, and pO-
litieal excitement always affects business IN
favorably. This all sounds diseouraging, and
on the other side it may be urged that prices
are SO low that any change will be toward
higher level, and that our exports must in
crease, and, in consequence, gold be imported.
IL does not seem TO US that there is that extern
sion of credit which preceded the great panics of
the past Locally we have been spared large
mercantile failures, and after such period of
liquidation, it would sesm reasonable 10 hope
that we have seen The worst.