The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-02
views of Henry CIews.

In reviewing the financial situation Henry
Clews, the New York banker. says: "As
to crop prospects, two things become more
certain as the season develops; first, that
our wheat crop is likely to prove one of the
largest ever raised; and next, that the
foreign deficiencies of wheat supply are ex-
traordinarily important. These factors
now seem to be established beyond any
possibility of change by later reports. The
prospects as to corn are less developed
than those relating to wheat. AT the mo-
ment, either a large crop or a deficient one
may be considered possible; but there is a
hopeful probability that the present dis
turbed atmospheric conditions may be fol-
lowed by a run of weather favorable to the
maturing of the crop.
These agricultural conditions mean, in
the first place, large increase in the earn
ings of the railroads, which may be eX
pected to appear from this time forward.
In the next place, we may reasonably eX-
pect an unprecedented export of agricul-
tural products, the increase applying to
values as we'll as to quantity. The rela-
lively high price of wheat together with
the extraordinary volume of surplus home
supply, will have a very important bearing
upon the current of our foreign trade. To
this must also be added the export of an
immense cotton crop. The outward move
ment in these two great staples gives
certainty of year of extraordinary eX-
ports. On the other hand it is to be taken
into the account that the imports promise
to be relatively light How far the adj
vance in duties, under the tariff, will
exclude foreign goods remains to be
proved; it cannot fail to have some APP
preciable influence in that direction. But
1t is already an accomplished fact that
fully 500, 900 900 worth of merchandise has
been imported in advance of the wants
of the next twelve months; and what is of
special Importance in this connection is the
fact that a large portion of those imports
have been already paid for, so that their
effect upon the foreign exchanges is a
conditions lay the basis for an eXtraordi-
nary foreign trade balance in our favor
during the crop year upon which we have
entered The probabilities thus point to an
unusually important import of gold. And
although we may not be in any real need
of an increase in our stock of the metal,
yet its possession will have very valuable
effects. 1t will give us continuous ease
in the money market by repleniShing the
reserves of the banks; and, should the
banks be disposed to voluntarily transfer
a portion of their gold to the treasury it
will also strengthen the metallic reserves
of the government. In any event pending
the earnest attention that is being directed
towards the condition of our currency sys-
tenn il can only have highly beneficial
effect both at home and abroad, to see the
nations gold stock rising towards the fore
most rank in the world, and that by
purely normal process. All this inevitably
cial and financial, that will carry us into
condition of great national prosperity.
What this means for our various forms of
corporate investment hardly needs to be
said Nothing can prevent such conditions
from producing an advance in securities
still conservative mood. is as yet calcu-
latipe upon.