The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-05-23

Henry ClewS'S weekly letter on trade con-
ditions says: The absence of notable events
in the war and the uncertainty attending
the movements of our fleets seeking the
Spanish squadron have not been conducive
to activity in the Wall-street markets. I'm
certainty is the most discouraging influence
that affects the stock market and the
bears usually do their best to turn it to
their account Besides, the previous large
advance in prices and the retirement of
some large operators from the arena had
somewhat exposed the market to attack
but, nevertheless. although some securities
are lower, the average range of prices
shows little change from week ago. The
severe official restraints upon the press in
the printing of war news, in order to pre-
vent giving information to the enemy, has
tended materially to check the excitement
attending military and naval movements,
and this has had the effect of somewhat
limiting the amount of transactions; but
at the same time, it has impaired steadier
tone to business.
An important element of strength has
been contributed by the monthly statement
of foreign commerce, showing a further
large increase in the creditor balance of our
external trade. The April exports of mer-
chandse show an increase over those of
1897 of SOL or nearly 80 per cent, while
the imports of goods exhibit a decrease of
$45 400 ,0C0. or nearly As per cent. While for
April, 1897, there was an excess of imports
over exports amounting to $23673,0O0 last
month the exports exceeded the imports by
$435O2, 900; so that the April balance is
SGT 175, 900 more in our favor than it was last
year. This is a most extraordinary move
ment. OF course. 1T is out of the question
for Europe to continue indefinitely to pay
these unprecedented balances in gold. The
effect is to force up the rate of interest at
the European money centers while depress-
ing 1t here, and thus 1t becomes a paying
transient investment to buy up export bills
on London and other European points. This
process, after a suspension of some weeks
is starting up again, with the effect of put
ting up exchange to rates which have stop
ped the importation of gold At the same
time, the high rates for money at London
are causing some return of our securities
which is a real contribution towards the
liquidation Of our creditor balance while
our purchases of export bills are but tenn
porary poStpOnementS of the foreign in
debtedness and do not avert future settle
mentS through remittance of gold. The
amount of floating European indebtedness
now outstanding is calculated to keep the
rate of interest relatively high in London,
and the more so as Russia is appearing as
a free buyer of the metal; and that fact
may be expected to stimulate our local pur-
chaSes of export bills.
For the first ten months of the current
fiscal year our gross exports OF merchan-
imports of the same items were valued at
1921. O52 900; which shows excess OF ex-
ports over imports. for the last ten months,
amounting to 1851, 065. 900. This balance has
been set off to the extent of 1884, ATS, 900 by
net imports of gold: which leaves a remain
ing balance of 1896 COO to be liquida ted
from other sources. The value of returned
securities, our interest payments and all the
other debtor items combined cannot be sup
posed to at all approximate these figures.
extraordinary allowances for the return Of
securities, very large unlquidated bal
ance must still remain due to this country
certainly not less than 100000 000 but more
likely a much higher sum. Our financial
relations with Europe thus stand well pro-
tected for some time to come with the
result of strengthening our gold basis under
the trying conditions of state of war
finance
1t may be reasonably questioned whether
any other country has ever made such
brilliant record under like conditions and
especially in. the prospect of a foreign war
In part settlement of this credit balance
we have taken back very large amount
OF securities without any bad effect upon
our home market The return of ST. Paul
The holdings of this stock on the other side
have averaged $4,000 shares for great
many years back. The present holdings
abroad are only about one-thrd of that
amount. The commercial relations of this
country were never on so substantial
basis as to-day. which compared with
SPANS beggarly condition is certainly re-
assuring. The only way for stock opera
tors TO make money in the future is to for
get our relatively small troubles with Spain
time.