The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-05
HENRY CLEWS'S REVIEW.

N@Ws 49, -" @1~4
HENRY CLEWS'S REVIEW.
In reviewing the financial situation last
week Henry Clews says: I'm our last ad-
vices we intimated that the bear element
in, Wall street was losing its hold upon the
market, and that prices were drifting to-
ward "a rise which could no longer be held
waiting for the result of the November
election. That forecast has already been
confirmed. Throughout the week there has
been a steady and free buying movement,
with a considerable rise in quotations, and
although some liberal sales have been made
to realize profits, the market has taken the
stock readily. with only a transient yielding
in prices. This firmness has been followed
by London, where prices have risen, and
without any selling on New York either on
short account or to realize. This, however,
may not mean much, as London holdings of
Americans appear to be at present excep-
tionally light.
This upward turn is the more assuring
because it has successfully overcome some
new obstacles. The rates of foreign ex-
change have advanced to a point at which
it no longer pays to bring gold this way,
and consequently there is a cessation of en-
| gagements for importing the yellow metal.
1t is true that this is only "a temporary in
terruption of the movement, due to the
liquidation of borrowings abroad of some
| SO. 900. 900 about two months ago, which alb
serbs the supply of bills for a few days,
but all do not understand this explanation,
and for the moment the market loses the
exhilarating effect of a continuous influx
of gold money upon our market. Also, an
other visit of the Platte Orator to this To-
cality has revived the timidity of the need
lessly alarmed, though the sensation was
| brief and cncOur2glnglV void of effect on
sound-money enthusiasm. A yet more
serious element has been the cutting of
rail rates on the routes extending from the
lakes to the gulf ports. This is a matter
of real consequence TO the roads. serving the
corn belt, which are threatened with the
diversion of an important amount of traffic
from the Atlantic ports. Two extraordi-
rary corn crops. attended with low prices,
have largely increased the European de-
mand for that grain, and 1t is therefore
natural enough that an effort should be
made to secure this traffic for the routes
connecting with the Southern ports. 1t is
an illustration of the changes that are con-
~tinually turning up to tempt the roads
the roads can hardly ie blamed for the
spirited way in which they are facing a
cutting in this particular %sectio=.. however.
the companies are living well up to their
agreements, and the granger lines have lit
tie to complain of.
These drawbacks. however. are but tenn
porary influences. The settlement for the
ten millions of sterling advances is APP
IA q oiN VAS h"S
source OF demand for exchange has been
satisfied we may expect a return to the
surplus of bills over the mercantile demand
which has led to the imports of gold; for
the excess of exports over imports still con-
tinues with no visible abatement, although
at the moment berth room is SO scarce as
to hold back exports for which engage
ments have been made--a fact which points
to a prolonged favorable balance of trade.
So far as respects the political situation
the prospect becomes more and more GER
tain of the defeat of free silver in Novem-
her univ with growing nrOh3h i1ItipS that
the adverse majority will be so overwhelm-
ingly large as to place that issue beyond
the diversion of corn exports to the gulf
ports, while it may cause some loss on
others, and also will facilitate the foreign
marketing of our chief agricultural crop,
the exports of which are likely to be I'M
usually large.
Great expectations are placed upon the
national sense of relief that will attend the
expected triumph of a sound-money policy
cessive caution into which people have been
educated by the last three years of appre-
henSion has, however, the effect of prevent
ing anticipation from taking too much for
granted. The credit-granting power holds
everything in its control, and it is the habit
of bankers to act upon accomplished facts
rather than hopes, no matter how we'll
grounded. Industrial and mercantile inter-
ests therefore are waiting for the great re-
lief. rather than taking anticipatory action
upon it. In all branches of trade the feel
ing is becoming more confident. and when
a great anti-silver vote is announced there
viii not be much waiting for an active re-
sumption of business.
simultaneously with that recovery of
confidence, there will be other conditions
calculated to foster recuperation. The
of its gold reserve. The net gold now held
by the government, or assured to it,
amounts to about $3.50, 0G0. 900; and 1t seems
a safe stimate to suppose that by the end
of the month it may easily amount to S145,-
900, 0ee, which would be the largest reserve
held sirce March. 1891. The significance of
this fact would lie not Only in its strength
ening confidence in our financial position
and in promoting the value Of our invest
power of the government to restore ar
rangements under which the treasury
No Woui dra 1r PEI whiah hayy p roee : asain Is
large bond issues of the last two years.
Clearly, we are drifting into conditions of
regeneration which will make it much east
er to place the government credit and it's
note issues in a safe position than has
been possible since the crisis of 1893.
Nor is it to be overlooked that, with the
beginning of November. the currency move
ment will assume a direction calculated to
bring a period of marked ease in the money
market. Even, during the present month,
money is likely to in the banks.
reached it's elimination for this season and
is likely to steadily decline from this time
forward; while the bank reserves may be
expected to be fed by further imports of
gold Ordinarily. the money sent to the
interior in August and September begins to
flow back in November. The amount sent
out. since the beginning of August, by the
New York banks has so far amounted to
about $40, 0,000; and that will be available
for swelling the reserves during the last
two months of the year. barring the ship
ments which have yet to be sent to the
South. which have already been to some
extent anticipated by amounts sent to the
relief of the embarrassed banks of New Or
leans.
Thus. assuming that the national YER
dict Will rid us of the silver danger, the
future has little to suggest misgivings and
much to encourage sanguine hopes. We
do not counsel mourning large engage
mentS in prospect of these encourag ing
probabilities: but we do advise our friends
to stand prepared for the great opportunf-
ties that will be presented when the Ma
ton ~justifies its honor and good judgment
by declaring for a sound-money policy"
Saturdays Bank CIearings.
At SIS, o51. 1888. Money firm;
on call, 6QT per cent. on time, : per cent. New
York exchange, $1.05 discount. Foreign exchange
unchanged; demand. $4.S55s: sixty days, s.. S3I..
At MISUNDERSTANDING, s12. 312, s95; balances.
81, S75. S7S.
At MISUNDERSTANDING. $456, 1853; balances.
At St. Louis-Clearings, 1902. 24s: balances.
$4I3, 65a.
At New -Orleans-Clearings 81, 34S. 760.
AT 50, 709. COS; balances,
s404. 1874.
At New York-Clearings slo2. III, $50; balances.