The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-09

IN reviewing the financial situation In
Wall street last week Banker Clews says:
I'VE have had during the week reaction,
being one of a series of halts which have
characterized the upward movement of the
last three months. These bounds and
sumps are symptomatic of the temper of
the market and of the kind of influences
that are affecting it; and it may be well to
understand their cause. They do not imply
any real distrust in the soundness of values,
nor in the reality of the recovery in the
general conditions that determine prices,
nor do they mean that there is anywhere
any settled misgiving as to the prospect of
an ultimate still greater advance in prices.
All this is taken for granted almost every
where even the bears are bears only for
the moment, and are extremely cautious
ABOUT not letting their shorts run too long.
Why is 1t then that, instead of a continuous
rise, we have had a two or three weeks of
rise followed by period of realizing and
partial reaction? Why is the Wal-street
weather fitful and gusty, instead of
steady forcing breeze? The following fac
tors may be taken as an answer: FIRST Be-
cause operators have not yet entirely got
rid of the habit of nervous caution inspired
by the diSoroers or the last four years.
Second, Because the situation, though one
of healthy tendencies, is yet Vely COM
phcated one Inougn we ViSibly and
surely fnung our way out of the derange-
menJS that set IN with 1885 yet many
commercial-are still demanding settlement
but are far from having reacheu tnaI point.
Third Because, atunough business at
large is fast returning toward normal ac-
tiVty, yet there is SIiiI some mlSSlVlng as
to what a revival OF activity in all our
vast productive resources ana In all our
manufacturing plants may mean. The
question remains to be settled by expert
ence-whether we can fully depend upon
finding a market or markets equal to our
productive capacity; and if not, what is to
be the effect upon commercial values. Inc
fact that the undoubted commercial revival
has not yet been attended with the rise IN
prices usual under SUCH circumstances
naturally gives point to the question.
Fourth. The recent unfavorablee, crop
some drawback upon the grand harvest
prospects that have so excited the national
expectations, which causes some pessimistlc
people to discount the promised farm
ing prosperity and the inevitable IN
crease in the business of the railroads.
Fifth Because though there IS noth-
ing in our foreign relations to suggest I'M
pending danger, yet the annexation CT
Hawaii, the reopening of the seal ques,
ton, the DELEGATE possiDliities colils e Yea
stage OF exhaustion and desperation
which the Cuban situation is assuming IN
Madrid are all new elements that yle5d
occa sionaI encoura cement to the bear side
of the market. Sixth, because the market
lacks some elements that are needtul 10
sustained and continuously rising market
After such a long depression, the mercdn-
tile and professional classes nave no accu-
INFLATED profits to employ IN specuIdloll'
much less to use in bona noe investments
And even the more important class VINO are
accustomed TO employ a large amount CT
floating capital in connection with the
changing fortunes of corporate securities
have less than the usual amount OF re-
source for engaging in such operations;
And seventh, because the London and
other foreign markets are showing vac
illating disposition toward our securities,
and in fact for the moment, at least, are
reader to sell than to buy them.
'srThese NAV be regarded as the chief rea-
sons why prices in Wall street are advanc-
ing by somewhat cautious steps. in the
face of fundamental conditions which, UNI
der other circumstance, would nave
caused an excited buying movement and
larger advance in prices. In no one of these
different factors is there anything TO war
rant any serious misgiVings And putting
them altogether, the most sangulne bear
wouId not regard them as warranting a
serious attack on the market. Their net
combined effect is sufficient, however TO
market and make it possible to get stocks
hack at a concession when operators
choose to realize profits. In this sense the
market is an easy and sate one 10 operate
on. the buyer is sure of a rise, and he may
take his profit with reasonable prospect
of being able to buy in at lower prices
This gradual process or rise cannot now
ever continue forever. Those who are tGl-
lowing it are making very large profits;
those profits are being reinvested In IN
creased holdings; and thus the demand is
expanding to an extent which VIII, at
later stage suffice TO compel a probably
more continuous and larger advance in
prices throughout the entire list. At the
moment it seems as though we nave about
seen the end of the present reaction and are
ready for another upward movement"
Gold Imports Not Unlikely.
LONDON, Aug. 8.-Since the beginning CT
the month there has been the usual release
Of funds by the joint stock banks. Money