The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-17
Views of Henry CIevvs.

Henry Clews, of New York in his finan-
ciaI review, says: The predominant I'M
derlying conviction appears to be that the
prevailing level of prices is not only safe
one, but below the real intrinsic merits of
securities, considering existing conditions
and the prospects fairly deducible from the
general situation of affairs. But as this
view counts more upon things anticipated
than upon existing conditions, favorable oc-
currences do not lead to any really active
and sustained upward movement. In
brief, it is largely an expectant market. and
in that sense not yet sufficiently developed
to induce active operations.
This hopeful tone has been confirmed
by a steady and really important improve
ment in the condition of the cereal crops
during the last week or ten days. The gov
eminent weekly crop report states that
crop conditions in the upper mississippi and
Missouri valleys for the week ending May
TO- have been the best of the season and
really excellent for farming operations and
the growth of crops. Under the favorable
weather conditions prevailing in the prin-
cipaI corn States, corn planting has
been pushed rapidly during the week.
Planting Is now in progress as
far north as southern New England,
Michigan and South Dakota and Will be-
gin this week in Minnesota. In the middle
Atlantic States and TO the southwark of
the Ohio and Missouri rivers, planting is
continues promising in the middle Atlantic
States and in Kentucky and Tennessee, re-
ports from the two last named states being
exceptionally favorable. Further improve
ment is also indicated from Ohio and In
diana, and the crop is reported as doing
well in Illinois, Missouri and portions of
Kansas. In Oregon and Washington the
outlook is very promising, but in California
the crop has been greatly injured by hot
winds. Spring wheat seeding Is practically
completed, Minnesota and North Dakota
having about finished during the
week. over the. central and south
ern portions of the spring wheat
region the early sown has good
start and is growing well. Private reports
of later date, from some of the Western
centerS, are still more sanguine. These &C
counts suggest the possibility of a better
spring wheat harvest than has been hith-
erto expected though they do not suffice to
offset the probabilities of a short general
crop owing to irremediable injury
to the winter wheat All the information
from foreign markets points to the prob
ability of a short worlds crop of wheat
European buyers are showing a disposition
to discount that prospect by making con-
thus far been too low to admit transactions
The probability, however, seems to be that
upon such surplus of cereals as we may
have for export from the next harvest, we
shall realize relatively high prices . >
Another significant transaction has been
consummated indicating the tendency
towards a permanent reduction in the rate
of interest upon investments The Illinois
Central Railroad Company has negotiated
an issue OF $S0,uUV,VUO OF o12 per cent. nrSt
mortgage bonds TO take up issues of the
former Chesapeake, Ohio x Southwestern
and the St Louis & Terre Haute Rail-
roads. now incorporated in the Illinois Cen
trial system the superseded bonds having
borne interest ranging principally from 5
to per cent This. added to the many
times larger conversions recently arranged
for by other railroads, shows the willing
ness of capital 10 invest in large
amounts at 3031a per cent At the
same time. it leaves no doubt of the possi-
bility of other roads in good credit largely
reducing their mortgage charges. with con-
sequent advantage to the stockholding in
terest The effect is to place dividend-pay-
ing shares ia a much better position as TO
value. especially in the case of Companies
which have effected these reductions Of in
terest for decline in the rate OF interest
means a relative rise in the market value
principal. One of the first effects Of these