The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-10
Views of Henry CIews.

In reviewing the financial situation at
New York last week Henry Clews says the
bank reserves on Friday were but $15 SOC, 000
the lowest since 1893 This" he says sis
partly due to the settlements connected
with the Union Pacific debt, and may be
expected to gradually disappear within
comparatively short period. The last pay
ment of the committee on these settlements.
amounting in round figures to IS, 000 600, was
made on Tuesday last, and the amount
of government money held by the New
York banks on this account is estimated to
be from $160O0,O00 to SIS, 100000, which in
wolves a reduction in the surplus reserves
to the extent of % per cent. of that item
There are also some other important I'M
usual elements in the banking situation
which tend to stiffen the money market
1t is estimated that the amount of foreign
exchange held back for temporary invest
ment now reaches about s2OOOO,OO0. The
amount of foreign balances due New York
on open accounts, but allowed to rest in
London and Berlin, is supposed by those
best situated to know to be not less than
$lO,OOOOO0, and besides this, the bankers and
banks of this city are under advances to
Europe, against bond collaterals, to sum
probably not less than $40, 900, 600. Putting
together these three items they show that
New York is now virtually lending some
$40 900 to the European money centers,
which, but for these deferments of settle
ments, would have brought US an equal
amount Of gold. So long as these accounts
remain outstanding it is not to be expected
that we shall soon witness any notable ease
In the local money market. The position
of the loan market is, however, a strong
and healthy one, for these advances to
oreign countries represent a resource
hich can be transferred for home use at
e convenience of our local demand. For
time being however, this situation has
tendency to hold in check any large OPP
tions in speculative undertakings.
Nevertheless, during the last two days of
week there was distinct Improvement
i. speculative transactions. Some of the
lately absent larger operators became ac-
tive buyers. and the increased orders to the
were beginning to employ their interest and
dividend receipts in purchases for higher
prices. How far these operations may run
it remains to be seen. 1t is certain, how
ever. that the general situation is virtually
i'm every way favorable to higher range
of values for stocks.
1.-THE railroads keep up their late extraor-
binary rate of increase in business. The
gross earnings of eighty-four roads for the
second week of December show an average
gain over last year of Il per cent Esti-
mates of the movement of the wheat crop
Indicate an unusually large stock in the
hands of farmers on the 1st of January.
which remains future contribution to the
business of the roads. There is every prob
ability that, when the spring trade sets in.
there will be an unprecedented amount of
merchandise freight going to the interior,
which is the most profitable kind of traffic.
Thus ii seems reasonable TO assume that
the great increase of earnings during the
1885, 1884, SIX rn0n'AS WIN &c '0'''i'''u ''O
I'm business circles generally the feeling
Is much more confident than 1t has been at
any time since the recovery of the last year
set in. We have had several months ex-
perience of this recuperation. and are there
fore in a fair position to Judge OF its quail
ity and further development, and the opin-
ion seems to be uniform that it rests upon
a sound and permanent basis and may be
expected TO expand into an era OF great
national prosperity. In mercantile circles
the feeling is conservative but full of con-
fidence Credit Is in wholesome condi-
ton. as IS evident from the remarkable
ments made at the close of the year has
not developed one failure IN this center of
Importance enough TO attract attention.
circumstances which is almost without prec-
edent.
which might be cited are plainly IN favor
of the investment markets. On the other
hand il is scarcely possible to specify any
noteworthy facts or influences of any OPP
posite tendency. The bear operators have
for selling, and are likely to cooperate in
establishing a higher scale or prices upon
which they may play Their y, game win WI n
prominent New York f1nancier whose poten-
CIV in the securities market is very great is
a warning TO them to keep their snort COM
mitments on strictly conservative scale,
as any day announcements may arrive
which would give new stimulus to the
market Striking balance between the
two slices of the market, / canIsot but re-
gard the preponderance as largely in IA
yor of the bull interest. that may not
mean any Immediate extraordinary activity
or great early advance in prices: but, to
my view, ii may be safely regarded as fore
shadowing steady upward tendency OF
prices from this time forward for the next
few months, which is as far ahead as it is
needful to look"