The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-14
views of Henry CIews.

Wall street, says Banker Clews,1 shows
little or no recovery from the collapse into
which it has fallen under the influence of
the Cuban situation. The investment de-
mand for securieties, though encouraged by
the low average of prices, is comparatively
nominal. In the speculative market there
is an absence of outside active operators.
The uncertainty about the final outcome
of our relations with Spain holds general
buying in absolute suspense, and favorable
factors appear to have little effect. On
their intrinsic merits, railroad stocks are
certainly cheap at current prices; but even
investors defer buying them, in view of the
possibility of serious Cuban developments.
The Supreme Court decision in the Nebraska
suit--one of the most important judgments
that has yet been given on the important
question of the power of the States to fix
rates or freight and which under ordinary
circumstances would have produced a con-
siderable rise in prices--passed almost un-
noticed and produced no visible effect upon
values, which is an expressive illustration
of the absolute stagnancy of the market.
Meanwhile, a series of factors are adding
to the intrinsic value of stocks, which,
when the market is relieved from it's pres
emit political trammels, will be likely to find
Those, therefore, who are independent of
margins and are satisfied that we shall see
the Cuban question settled without war,
should be able to expect an ultimate profit
on purchases at even the present scale OF
prices.
due to this country has proved too ponder
Gus to yield to the various arrangements
for postponing its settlement and gold is
therefore flowing in from Europe in large
volume. The amount shipped and engaged
for shipment since the influx set in is about
$15000O00; and the low rates of exchange
movement 1t is helped by large supplies of
produce bills; but the main cause appears
to lie in the fact that this deferment OF set
convenience How far the movement may
run it would be difficult to estimate. If it
were to be measured by the amount due TO
us, the imports of gold would be extraordi-
narily large; but the European banks could
i'll afford to part with any very large sum
in view of the moderate supplies now on
hand and the existing threatening derange-
ments in European politics, which must be
causing a good deal of liquidation of inter-
national accounts. AS we have on this side
the Atlantic no pressure for money, but
rather a plethora, the probability would
seem to be that, so soon as the Withdrawals
begin to make themselves severely felt in
London. arrangements may be made for
further extension of the credits we are now
granting to Europe. AT the same time, it is
to be- considered that we have now reached
period when the proportion between i'm
ports and exports usually causes the for
6lSn TO balance against us, ana
the factors contributing to that condition
may be expected to have a certain influence
in that direction soon, though far from suf-
flcient to liquidate the balance remaining
due to this country. Some allowance how
ever, must be made for the possibility that
We may have to remit for war vessels or
military munitions purchased abroad: but
those payments would not be immediate,
nor could they be really serious in amount
1t is most fortunate that the trade balance
should stand so largely in DUR favor in the.
face of the possibilities of "a foreign war
we have now Si23, OOO, COO Of specie in the
New York banks and $169 100000 of gold in
the treasury which, with the current I'M
ports of $15, 900. 000 after deducting the one
hundred millions of reserve gold, makes a
total available supply of $207. 600. 900. To this
may be added. on very moderate estimate
5000 600 represented by foreign creditor
balances still due to us; which, in the face
of war possibilities, gives us a total avail
able gold resource amounting to over $3.50
COO 000-to say nothing of the other stocks
of the metal in this country amounting to
over $450.00o 600. These facts show ample
financial preparedness for whatever may
come out of the condition of our present
foreign relations. and justify confidence in
the financial future from this point of view
The unanimous action of Congress in
voting $50G00,000 out of funds In the treas
TRY for reinforcing the national ornaments
and defenses has had a most wholesome
effect upon the public temper and opinion
IL has given no stimulus TO such qualified
war spirit as has existed, but has produced
q more serious estimate Of the situation
and an assurance that if the worst should
come. we shall be well prepared for vigor-
Gus action. In a large measure, it is true
that to be prepared for war is TO escape
war. From this vote, Spain will learn that
cur attitude means more than talk, that the
whole country stands behind the admins
tration, and that If Spain drives us to the
asst extremity there can be bat one result
OF her temerlty. The action of Congress
win also reach Spain indirectly through the
courts OF Europe. Each government will
construe It as conclusive evidence that, II