The Indianapolis journal., 1897-01-04
Views of Henry CIevvs.

Views of Henry CIews.
In reviewing the financial situation last
week Henry CIews said: 1.-The last week of
the year closes with a steady and confident
feeling in Wall street. The chief events of
the week have been the Western bank fail
ures and the more hopeful aspect of the
Cuban situation In well-informed quar-
ters the bank troubles are not regarded as
warranting unsettling differences as to the
condition of the Western banks at large.
Certain Minnesota banks have been known
for some time to be under serious commit
ments to the lumber trade. and failures
among those institutions have been eX-
pected but the suspensions are believed TO
have now run their course. With probably
few exceptions, the Western banks are now
regarded as in a reasonably sound con-
dition. AS the recent failures were due en-
tirely to exceptional local causes, Wall
street sees nothing in them to warrant un-
eaSineSS-
I'm striking contrast to these occurrences
out West. is the unusual scarcity OF lnSolV-
encies at this center. At this period of the
year, a crop of failures. arising out of an
nual settlements. is expected as matter or
course. Within the last two weeks. how
ever Notwithstanding the severe experience
of 1896 i'm all branches of business. not A
single notable suspension has happened:
This speaks much for the soundness of
business conditions at the metropolis, and
casts forward a hopeful prospect for 1897
This. with other evidences OF a sound basis
of credit i'm every department of opera
tions, has much to do with the hopeful
feeling in Wall street and the growing ex-
pectation of higher prices for securities
with the opening of the new year.
THE Cuban situation, to all appearance,
seems TO be entering upon a more hopeful
phase. Although many reports have been
circulated, more or less definite. the precise
nature of the relations between the State
Department and Spain do not appear TO
have vet been explained. Sufficient, how
ever. has been directly or indirectly admit
ted by Secretary Olney to leave no doubt
fh.af lot ions lnc
the Spanish government and the Cuban
| leaders into pacific conference, through the
medium of the United States: which is
a very hopeful sign of early settlement
of the troubles between Spain and her col
ony. Already. the very grave Venezuelan
dispute has been disposed of: and if the
chances of our embodiment in the Cuba
quarrel should be obviated by peaceful
adjustment. there would be no longer any
| foreign entanglements to beset the path 10
prosperity in this country.
I'm this respect the business of 1897 opens
| with much more encouraging auspices than
| existed a year ago. In other ways also.
| the prospect has greatly improved. The
silver ghost no longer haunts us. The ear
| nestness with which the House of Repre-
sentatives is taking up the currency and
| banking questions affords reasons for
| hoping that in those much deranged
| tions may be Effected and the more so be-
cause the business interests will bring a
very strong pressure to bear upon Congress
| for bringing about currency reform
1T is also to be kept in mind that the
now strengthened position of the treasury
gold reserve is calculated to have an en-
| cOuraging effect upon public confidence.
The large importa tions of gold during the
recent months have enabled the govern
ment to raise the reserve 81 millions above
| the 100 million mark. and the local banks
are holding fully their average stocks of
Change held il this city will probably
| more than suffice to settle the adverse for
| eign balance which generally accumulates
| during the first three or four months of the
there prospect
| the treasury being drawn upon for gold for
| expectation. Virtually. therefore. it may be
considered that the treasury gold reserve
| is likely to be kept above the legal limit
| throughout 1897. In the meantime, there is
| accomplished. either. by Congress or
through an understanding between the gov
| ernment and the banks. by which the
treasury will in future be shielded against
| foreign drains upon its reserve of gold.
| These facts. showing such an unusual
| measure of exemption from dependence
| consequence to the recovery of business
| during the year upon which we have now
| TO realize this independence: but now that
| it has come. We may indulge some pride
| over the achieyement. A year ago. we were
| alarmed at our exposure to the tender
/ merces of European financiers. and they
| were treating us with thinly disguised dis.
| trust and prophesying all manner Of evi
| fate against us; now. for the FIRST time in
/ the history of our foreign relations. we
| are lending these same financiers some 50
convenience and relief of the borrowers
| And vet this position is little understood or
| appreciated by our men of business. and
| many stand on the threshold of 1897 tim
| idly wondering how we to come out
of il:
There is another achievement of the
| year which should afford us no little salts
| faction. We have been clearing the deck
| of our corporate insolvencies. During the
| year six large and many smaller bank
| rupt companies (chiefy railroads) have
| been reorganized. attended with the issue
of S941. 600 of securities. 10 replace the old
| issues. which have long been i'm state
| of suspense. These securities have been
| listed on the Stock Exchange and consti-
| tute about 10 per cent. of the entire amount
| of stocks and bonds now so represented on,
| the Exchange-s,The effect of these opera
| tions has been TO place nearly 1000 millions
| Of representatives of capital at freer use by
| the investing public and so far TO increase
| the transactions in Wall street. These is
sues VIII be some time In flndlng a final
| adjustment of their resting place. and dur
| ing the process likely to be subjects
| OF active speculation.
THE foregoing are among many factors
| which are calculated to foster a hopeful
| feeling at the opening of the New Year.
| There are others of an opposite character
| but the eneoura ging features preponderate
| largely over the discouraging; and, apart
! from Unforeseen adverse events. / do not
| hesitate TO forecast that year hence this
| estimate will be confirmed by the outcome -
saturdays Bank CIearings.
At chtcago-Clea1ings. SIS; 7ss, ss2 Money steady
MUM Sterling posted rates. A.@ and s4.s4iz.
| At Cincinnati-Clearings 81. 731. 40.
| At ST. Lous-Clearings. SiSl70i7; balances.
| SS34. 1874.
At MISUNDERSTANDING. s4O5. $50: balances.
| S6S
Al Phiiadelphia--Clearings. SIS s4s $685. balances,
| ST. sSeS21
At New OrIeans-CIearings 81 22s 1Se
At New York-Clearinss. sle4.sS s7s; balances.
| Sl2. $50. Gcs.
| AT Boston-Ciearings. s22.lss,js5 balances.
| So. s92..61
| LOCAL GRAIN AND PRODUCE.