The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-20
views oil Henry CIeMs.

In reviewing the financial situation Henry
Clews, of New York, says: 1.-THE events of
the past week have been favorable to the
stock market. There have been no devel-
opments of a nature likely to disturb the
steady growth of confidence, and affairs
generally appear to be assuming a more en-
couraging shape. Tariff, Cuba, silver and a
lot of disturbing questions which had kept
the country on the edge of upheaval are
fairly out of the way and our legislators
are now wisely giving their attention to
pressing home affairs and such measures as
will promote the return of prosperity Cur
rency, bankruptcy, reciprocity and other
distinctly business or economic questions
are forcing themselves to the front. Cur
rency very properly leads them all. for this
vitality affects both our home and foreign
relations more than any other issue. The
outlook for any thorough reform at this
session is not particularly bright at the
moment, owing to widely different views
and the absence of strong leadership, but
partial success will at least be gained, and
then the campaign of education can be
pushed on until complete and satisfactory
revision is attained. OF one thing Wall
street may be assured-that is, that it has
less to fear from and more to hope from
Congress than for several years past
''1ne business outlook is also another
substantial source of encouragement. The
large gains in bank clearingS and railroad
earnings prove beyond dispute that trade is
increasing. There IS little speculation ana
values are low, so that these gains cannot
be- attributed TO imitation This is the dull
est period of the year, and yet merchants,
with few exceptions, report BUSH IS fairly
active. In the Interior the recovery has
been more pronounced than at the Seaboard.
New FORK being lagsard in this respect,
because the brunt OF the late depression
was felt here and the size and variety OF
the city's business interests make it slower
in responding to new influences than smaller
Railroad earnings tell remarkable
story. In the month of November l3I roads
reported an aggregate increase of 20 per
cent, and in december even this rate of
progress is being surpassed. In some cases
our ranroads are beating the records for
earnings, and, the gains are very fairly
distribul ed over the entire country, it fol-
lows that they must be due to Il general in
crease of traffic and not to single causes,
although shipments of grain, cotton and
provisions seem to have been the largest
items of growth. Altogether the railroad
situation is exceptionally satisfactory. The
only dark spot is the remote prObaO llity OF
any pooling law; yet the railroads are not
likely to cut rates with plenty of traffic in
sight as at present. Our railroads are down
to hardpan. Consolidation and reorSanza-
ton nave put them upon new and
stronger footing. AS a rule they are now
managed by practical railroad men, not
SPECTATORS, and financial control has passed
into more conservative hands, so that there
is little Likelihood of a repetition of the dis
graceful management which characterized
American railroads. in the past. Increased
earnings are enabling some to resume or
increase dividends, and others will shortly
follow, making them desirable investments.
These facts, as well as the approach OF Jan
uary disbursements, account tor the present
undercurrent strength of the stock market.
The recent advance has been encourag ed
by local operators and their efforts sup
ported by the big holders of stocks who are
always the first TO see new opportunities
A favorable feature was renewed foreign
buying. Europe has long been so shy of
our investments, and we have been so COM
pletely thrown upon our own resources, that
less attention has been paid to the London
market than usual. Some time ago this
country declared its financial independence
and lately foreigners have been bears on
disadvantage. Apparently however there
and. should Europe buy with any freedom,
the effect upon values would be important
Increased ACTIVITY in both call and time
money between now and the opening of the
new year will be likely to hold in check
any further upward movement in the stock
market AS matter of fact higher rates of
interest VIII be sure to produce a moderate
reaction from the recent higher level of
prices. in which event ii will pave the way
the better for another forward movement
early In January, and thereby give the new
year a good send-off. Meanwhile l advise
quick in-and-out buying and selling for
small profits only"
saturdays Bank CIearings
At New York-Clearings si52, S77. 2l7; balances