The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-18
views of Henry Clews.

Banker Clews, of New York, in his weekly
financial circular dated April 16, says: THE
feeling is very steadily gaining ground that
while, as an immediate effect of the actual
declaration of war, there would be a sudden
shock causing some partial fall in prices
yet the drop would soon yield to recovery
The only important factor initiating
against such course of the stock market
might possibly be forthcoming from the
money market The demands of the gov
eminent for money might prove to be a
source of fitful disturbance, and yet 1t is to
be considered that all the receipts of the
treasury would go into early disbursement
and upon conditions least calculated to lock
up money from public use, including free
use of the national bank repositories At
the close of the week prices do not vary
much from those of week ago. There have
been ups and downs, but the one has about
Offset the other The influx of gold shows
no abatement. The total amount received or
engaged for shipment now reaches $6O,00o.O0o
and it is estimated that about 900 of
bills are still held in this country, destined
to bring hither that further sum of gold.
THE government March report on our for
eign trade shows another remarkable addi-
ton to our foreign creditor trade balance
The uncertainties connected with our rela-
tons with Spain appear to have had the
effect of swelling our exports and contract
ing our imports. The Shipments of mer-
chandise Il. for r. March Va amount to sis. 500 600
last year, showing an increase of $24. 600 600
The months imports on the contrary, fell
$14, 6C0, 900 below those of 1897 Comparing
the inward and outward trade, we have an
excess of exports over imports last month
amounting to s53 COO, while for the same
orly 1880 goo. The extraordinary balance
of trade in our favor thus continues to in
crease without any abatement. We have
ir0n0rf n during month
amounting to $29. 500 600 but that was large
ly due to bills of exchange drawn against
exports of previous months and held back
for temporary investment
No nation was ever so near a war as this
and escaped from it; still, there is yet left
some ground for hope of a peaceful settle
ment General Lees testimony before the
Senate committee of foreign affairs was
conservative and to his credit, because it
was devoid of sensational effort. Its effect
therefore. should be to tame down rather
than infiame the members of Congress, and
thereby prevent precipitate action such
would bring about Eostilities. The point
raised that Spain is bankrupt and is in
sequence a weak foe. is not well taken
In the event of Spain going to war with this
country it will certainly be impossible for
her to raise money by the sale of her bonds.
as they have already gone down to 421R. and
to probably 20 or less. She will therefore
naturally abandon ambition to keep up her
national credit. and hence interest on her
outstanding obligations will be sure to be de-
faulted on. This amounts to about 800, 000.-
tU Il year Wnlcn she Will nave Tor war Dur-
poses. Contributions and forced revenue
from the people will be one of the processes
resorted to to carry on the Spain will
be in position similar to that of a bank
rupt railroad which makes bad foe for q
solvent competitor. A railroad in the hands
of receiver pays out nothing except to
keep the road in repair and can make
forced loans besides through receivers GER
tificateS authorized by court which become
a first claim against TIE road. to provide for
pay rolls ard expenses to Keep the road in
fighting condition--OSteLSibly to be in a
safe condition to prevent a sacrifice of life
a weak railroad can. therefore, cut rates
so low as to infiict serious injury to strong
competitor if it continues the fight long
enough. While Spanish tours at present
price (421b) yield 9Ia per cent. interest, Unit
ed States tours Cat 12D yield only 27s per
cent. interest, and, Notwithstanding the
wide difference in the market price of the
two securities United States bonds are in
finitely the cheapest and most desirable for
an investment. because the principal and
interest ere absolutely secure under any
cl:cume t4nces whereas, in the event of
war Spanish bonds will certainly be made
ali !faIv insecure. if not worthless