The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-11-23
Total

Also in 2S5 factories there has been an in
crease of working force or an augmentation
Of output. This great revival, however. is
widely distributed that it produces at
present an ineffective impression upon the
public mind; but Ii nevertheless Involves
process which will later exhibit itself in an
imposing expansion of business.
Fourth-For the reasons just referred to
there has so far been no material for any
striking increase in the earnings of the rail-
roads, which must wait some weeks or
months before they can reap the full benefit
from the new conditions. This also has
checked the ardor of unref1ecting observers.
Fifth-The interruption of imports of gold
has continued longer than was expected by
not few of the habitues of Wall street.
No doubt this is attributable almost en-
tirely to the return Of securities from con-
tinental Europe above referred to- But al
though that movement has been quite suffi-
cent to keep exchange above the specie
importing point up to the present time. 1t
is very doubtful whether it will much
longer suffice to stop the influx of gold for
on the one hand the return of securities
seems to have run it's course and on the
other hand ii has by no means sufficed to
settle the trade balance in favor of this
country. Official statistics show that from
Aug. l to the present time the exports of
imports by about $3.50. 000 900. We may reck-
on the following offsets accruing against
this creditor balance within the same pc
Rod:
Securities returned, estimated -. 2O,000,0OO
Various other debtor items $4,000, 600
Total S12S, SOC, 600
According to this balancing there still re-
mains over $50, DOC, 900 to our favor in the
foreign-trade balance. The banking inter-
ests Of London. Paris and Berlin appear to
be strongly opposed to parting with more of
their gold for the United States, and will
probably try to manipulate the money mar
ket through the interest rate and otherwise.
so as to keep their gold at home; but our
creditor balance is so heavy that 1T may
prove only partially responsive. to such
handling, and renewal OF gold imports Is
by no means improbable.
SiXth-The gold question, however, has a
doubtful side as to the foreign markets for
our securities. Further advances in the
Bank of England rate of interest are ex-
pected, and intimations come from London
of a possible 6-per-cent rate for a few
weeks, while Kaffir stocks are again max
free exports of our bonds and stocks to
London could hardly be counted upon under
The foregoing considerations explain the
present halt in the upward movement in
prices. AT the same time, intrinsically the
ally firm in their conviction that prices
have not risen TO point at all correspond
ing to the Improvement in the fundament-
al conditions affecting values. They are
not easily moved to sell by small adverse
occurrences: and The bears find 1t difti-
cult to cover their short sales without
putting up prices. An upward movement
may recur at any. time. If literally prompt
ed: or il may be left until after the yearly
settlements. month hence. But. IN either
case. the material is steadily accommodating
for bull campaign after the opening
Of the new year.
There is every reason to expect that we
shall then see the effect of the election
upon the general trade Of the whole coun-
try. The mills will be active. a large dis
tributing trade will be in operation. labor
will be well employed, and for the first
time in four years we. shall breathe the
refreshing, air of healthy trade. The
banks will be plethoric with money AL
ready they hold a surplus of reserve
amounting to $4,000 900. and probably $50
co., sent to the interior during the fall
months. has yet to come back to them: SO
that 1897 will open with a local abundance
of money calculated to encourage active
investment and speculative operations on
are initiating a movement in the direction
of fostering the gold basis which. at a
later stage. may prove valuable contribu-
ton to consolidating public confidence
They are already beginning TO settle their
mutual balances at the clearing house in
and all indications point to this usage be-
coming general at an early day. At the
time the strong insistencc of public
opinion that currency reform shall, without
delay. be carried TO a worthy conclusion.
and the disposition shown to make that a
nonpartisan issue. is strongly suggestive
that our currency arrangements may soon
cease TO stand bar to confidence i'm
American finance. These are but some of
the factors which are working together for
making 1897 year memorable I'm history
for its reconstruction OF our monetary sys-
tenn. well as for a great revival of our
commerce upon solid foundations IL Is not
difficult to judge what is likely TO be the
course Of investments under the steady I'm