The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-25
views of Henry CIevys.

In reviewing the financial situation. Bank
er Clews, of New York, says: This coun-
try is under the impetus of an unprecedent-
ed expansion of its material interests. The
preponderance of capital is the demand
side of values. The leading operators,
skilled in manipulation, have faith in high
err prices for securities, and are ready to
work in that direction. A vigorous up
move will bring in the public, who are at
present more or less absent or undecided.
The return of ease and abundance of money
now makes the competition with loaners
and not borrowers. The ability of this
country to draw gold from Europe in large
amounts will continue for some time ahead.
The continued demand for our products,
especially wheat, is assured. The increased
output of the worlds gold production
means money imitation of considerable di-
mansions The general sentiment is hope
full and confident After four years of de-
preston such as we have had, four years
of activity should prevail. and / believe
will. Business expansion, with increa sed
credit, is in pl ogreSS all over the world. All
nations are tghting with each other for the
expansion of their commerce TO an extent
greater thao ever before. The greatest
generals now are to be found amongst
merchants and bankers, and not in the
armies. Business enterprise and the con-
quering of markets will make the coming
and lands that grow beets for sugar-mak-
ing will be sought after for matchmaking
Gold Will soon be abundant enough to jim
gle IL every Industrious mans pocket. Pso-
pie will thus become familiar with gold and
Will not banker after 10 to ] silver Instead
of railroads going into the hanos of receiv-
erS, they have now become the receivers
of property for II ansportation to such an
extent as to make almost car famine.
This country is at the. present time
virtually loaning money to London, and the
amount may easily reach $4,000 900. This is
being done by New York carrying time
sterling bills instead of forwarding them to
London. The higher the Bank OF England
rate goes, the larger viii be the amount of
these indirect loans 20 London If the Bank
of England rate (Which is not unlikely ad-
Vances to 4 per cent. and above and the
rate of interest be much less on this side we
are not likely to bring much gold this way
The exchange market on this side will be
handled in such a way as to prevent 1t
through investments here in sterling bills
The present excellent traffic returns are an
evidence of the Improvement In business in
all sections of this country. Railroad earn
ings alone produce dividend and interest
money on the securities issued by such cor
porations, and the only reliable evidence of
intrinsic value is the net money made by
these transportation companies. With these
facts in evidence Ii will not be an easy mat
ter for the bears to pound values down and
keep them depressed for any length of time.
THE money market has made a clear turn
in the direction of settled case, to continue
in any event until next spring, or quite pos
SlDly next ldl. Inc OuliOW VI CuIISIlCy "
the interior has almost entirely ceased, and
the next movement in order Is the ref1ux of
the $50 600 or more that has gone to the
West and South since last July. The South
may require some further remittances in
connection with the cotton movement
which has so far been unusually restricted,
and for that reason may be expected 10
materially increase next month But 1t is
not unlikely that the increase in the cot
ton exports may bring gold to this side of
the Atlantic with the present extraordinary
trade balance in our favor.
Probably, the present net Indebtedness
of other countries to the United States ex-
ceeds all precedent. For the month of
September the trade movement, including
gold and silver. showed an excess of eX-
ports over imports amounting to $50 35S 900.
For the three months of September, August
and July, the movement Inclusive of gold
and silver shows an excess of exports
amounting to 124000 POI. For the same
period of 1896 the balance to our credit was
only $52,5iS I99; and yet. under that much
smaller balance. we last year imported
$34, 600 of sold in September. European
financiers can hardly have any correct con-
ception of the magnitude of the balance
owing TO this country, they would not
speak so lightly of the probabilities of the
condition of the exchanges exposing the
European centers to the export of specie to
the United States. AS already intimated
however, 1t may turn out that large pro-
portion Of this adverse balance will be
bridged over through sterling exchange be-
ing bought up and carried on this side.
Some people appear TO be unculy con-
cerned about the impending decision of the
United States Supreme Court on the ques-
ton raised By the railroad law of Nebraska
The issue is a purely local one, and simply
concerns the power OF state legislature