The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-21


If we extend this comparison back to the
month OF january, we find that the low
prices reached last Saturday show a fall OF
IL points for New York Central 16 points
for Chicago, Burlington & Quincy, Is points
for Rock Island, Is points for Northwest.
16 points for Union Pacific preferred 25
points for Manhattan, &c points for Metro
politan Street-railway, and other properties
have receded III about the same proportion.
When 1t is considered that, even in the
event of war with Spain-which is far from
being a certainty-the development of the
vast resources of this country will continue
to go on; that the supply and demand for
products and manufactured goods Will con-
tinue just the same at present; that the
railroads will not only have their usual bus
mess, but that the transport of troops and
provisions therefor Will be an additional
source of revenue, so that their prosperous
condition which is at present conspicuous
is not likely to meet with any serious de-
rangement-in view of these considerations
and of the general confidence that if war
does occur 1t will be short and successful
1t seems reasonable to expect that, in spite
of war influences, money will seek invest
ment for the sake of it's earnings and Will
turn, as some seem to imagine In the event
of war, the absolute confidence in ultimate
victory would furnish a bottom for prices,
and the market might easily be less affected
than it is now by political uncertainties
1t is therefore a question whether prices
have not already fallen sufficiently to dis
count about the worst that is liable to nap
pea in the now problematical future The
market appears disposed to take the. affirm
first half of this week, there was a general
recovery of 2 to points above the lowest
prices of Saturdays break, and London has
again become a moderate buyer of our
stocks. Notwithstanding the stringency or
money there. Later in the week, prices
yielded on the report that the findings of
the naval board of inquiry would be rem
dered at the end of this week.
Current events show that in the future
International conflicts are more likely to
be fought on the sea than on land. AS
result four nations have, within the pres
ent month. appropriated $3SS ,O0O, 600 for
naval purposes-Great Britain $119,000,000,
United States $4,000 600. Russia $69, GOO, 600
and Germany $500 100000. These OUTLAWS
have been very enormously interpreted as
foreshadowing disturbances of the world s
money markets as interfering with the ne
gotiation of corporate loans and as being
generally unfavorable to the investment
markets. l can see no justification what
product of pessimistic imaginations. The
OUTLAWS of all the countries, except our own,
of England and Germany will be provided
for in the ordinary course of revenue and
therefore will involve no borrowing. Rus
STA will gradually draw her 1853, 000, 900 out
of imperial funds now on deposit and our
own appropriations will be provided for out
of surplus cash now in the treasury. Thus
none of these expenditures will involve any
issue of loans; while those of Russia and
the United, States will put $119 100000 of
money now boarded into active circulation,
thereby contributing to ease in the money
markets and strength in the cash re-
sources of the banks.
The home money market is amply pro-
nection with our relations with Spain.
The amount of the current gold
imports, received and to arrive, now
reaches over $25, 000 900; and although
exchange has risen to rate which
forbids further importatiOns at the moment,
yet our creditor claims upon Europe are
such as to place within our reach further
very large amounts of gold should we need
it. The largeness of our exports still con-
tinues and the moderation of the imports
is unchanged; so that the trade account for
February, including gold and silver shows
balance in our favor of 1913 900, 000-addng
further to the already extraordinary float
ing balance in our favor held in other coun-
tries. For the first eight months OF this
fiscal year. q balance of exports and i'm
$40S 900, GOO to the credit of the United States
Making a liberal deduction on account of
the net debtor items outside of imports and
exports and assuming that the movement
OF SecurietieS has averaged considerably
against US. there must still now remain an
unliquidated foreign balance in our favor
of very extraordinary dimensions much
larger, 1 apprehend, than is generally sup
posed, or than would be credited if fairly
estimated.
The next stage of interest in the secur-
tiles market will arrive when the naval
board of inquiry makes it's report to the
President which is now expected to occur
about at the end of this week. This will
raise new phase of excitement outside of
the larger question of the final settlement
of the Cuban question: which, whatever it's
purport, must affect the value of stocks
favorably If the report wholly eXonerates
Spain: unfavorably if she should be found
responsible for the absence of due diligence
in the protection of United States property
in her harbor. In the latter case, some
time must elapse first for the formulation
of our claims and next for their considera-
ton by Spain. This period must be a strain
upon the public patience, and there is dam
ger lest 1t may become so complicated with
the larger question as to develop unfortu-
nate phases of popular feeling. We are thus
getting into the thick of the complications
and the material for eXcitements may be-
come more sensitive than what has been
the financial markets may be subjected to
the test of new set of disturbing condi-
tons, and we therefore counsel caution.
The court of inquiry on the Maine dsas-
ter will simply report their conclusions
from the evidence submitted. Then before
a claim for indemnity against Spain is de-
manded, the President will most likely sub
nit the case to this country's best author
tiles Jurisprudence No better selection
could be made than the following: E. j.
Phelps ex-ninister to st. James; Robert
B. Eustis, ex-minister to Paris. These three
gentlemen have had great experience in
matters of international law by virtue of
the official positions which they have very
creditably filled and their decision will de-
termine whether or not we have a claim
against the government of SrGin which will
involve the loss of the property destroyed
and a pension for the families of the 253
men killed
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New Jersey National Guard.