The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-28
WORLDS MONEY CENTER
HENRY CLEWS HOLDS THAT NEW
YORK Is NOW IN THE LEAD.
Wonderful Credit Balances Due This
uatiOn seems Unsettled.

| Henry CIews in his weekly New York let
! ter on the financial situation says Dur
! ing the past week the revival of the specu-
| lative interest in Wall street has held its
| own, but has not made any further marked
progress No doubt the critical stage
reached in the peace negotiations at Paris
| has had the effect of checking or postponing
| transactions among a certain conservative
| class of operators. and the organized oppo-
sition to the annexation of the Philippines
which has sprung up suddenly among the
| manufacturing communities of New Eng
| land has had o like tendency. There is
| however, a limit to the extent to which
| these considerations can affect the financial
markets. There is no longer any reason to
| apprehend the Intervention of other powers
in our settlement with Spain, which is much
| more than could have been said but very
| short time ago. The market has the sup
| port of domestic conditions of unusual
strength and sufficient to protect it against
any bear maneuvers that might be at
| tempted. 1t is true that Germany is passing
through rather sharp money crisis, under
| which the Rechsbank has put it's rate to
| per cent, and that she is consequently send
| ing hither quite an important amount of
| bonds and stocks, but that movement is
| largely offset by buying on London account
in response to England's sympathy with our
peace policy. The net foreign movement
therefore affords little motive for specula-
| tive selling.
| THE aspects of home interests are en-
| couraging. The railroads continue TO show
| large earnings, and the late Supreme Court
decision against pooling appears to have
| produced little or no new decentralization in
rates. All accounts from the interior repre-
sent the distributing trades as in an unusu-
| ally healthy condition. In this city business
| still feels the reinforcing effect of the re-
| cent elections, and the dry goods trade, so
long hesitating and unsatisfactory, has at
| last reached q basis of values in the larger
| staples at which business moves with more
| confidence and in greater volume. The grain
| movement still continues to be on a large
| scale. After a short intermission in the
| foreign demand for wheat the export sales
| have risen to 10000 and 10000 bushels per
| day, and, in view of the still nominal stocks
| held in Europe, the outflow seems likely to
continue at high rate. Corn, the sales
| for shipment of which had lately declined,
is again in active demand for export, and
the current sales to Europe about equal
those of wheat. In the provision trade Chi
| cago reports large transactions for export.
These facts suggest their own differences as
| to the prosperity of trade at the West, as
| to the business of the railroads and as to
| the continuance of the large excess of our
exports oN er our imports.
| One of the results OF the election has
| been a very marked revival in the promo
ton OF new industrial enterprises Some of
the undertakings are in the nature of new
| trusts or combines" while others con-
sist of wholly new ventures. Preparations
are being made for the creation of some
corporations of very large magnitude and
| backed by wealthy supporters. The ease
of money in all sections with the prospect
OF ITS continuing for months to come, the
remarkable increase in the volume of the
currency through the large importations of
gold and its increased production at home
together with the accession of confidence
attendant on the elections-vthese causes
have encouraged appeals to the public in
behalf of enterprises long held in suspense
and all the probabilities indicate that 1899
will be an extraordinary year in the launch
ing Of new industrial undertakings.
For the past ten months the excess of
exports over imports of this country amount
to M700oOOO. against which we have i'm
ported over 0C0 of gold Allowing
for the return of American securities and
for freight money paid out TO foreign ship
owners, very large credit balance still re-
mains due to the United States. This show
ing amply protects us from any possibility
or gold shipments for some time ahead.
On the contrary, we are placed in a fortified
position to draw gold from Europe to the
extent of from $4,000, 000 to 800 coo 900 at
least, whenever the situation on this side
| makes 1t necessary While the call money
rate remains much under the Bank of
England rate. which is now per cent. and
the Bank of Berlin rate which is a present
per cent, it is a great deal more profitable
to keep credit balances on the other side
but it adds much to confidence to know
that we have the ability to draw at any
moment against the large cash indebtedness
due US For that reason the small surplus
reserve now held by the New York CITY
banks is not in the least disturbing While
Europe has been losing her circulating
medium, which has compelled the Bank of
England rate to go up to per cent and
the Bank of Berlin rate to per cent. this
country has gained during the past two
/ years $3.50 $1,000, which has been derived
from our own gold product gold imports
| and the increase in national bank bills
This immense increase in actual money is
the real substantial bull argument backing
the security market. and fully justifes the
| present advancing price of the sound and
| improving properties dealt In at the New
| York Stock Exchange
This countrys vast and various food
products have made IT the granary of the
| world. Through the preponderance of ex-
| ports over imports during the last two years
this country stands to-day a creditor ma
| to London, Germany and France vast sums
| of money. Instead of our bills of exchange
| made against our exports going to London
| for discount as heretofore, they are taken
| up on this side and held for temporary in
| vestment. Our present rate of interest is
| half that of the Bank of England rate and
| One-third of the Bank of Berlin rate not
| Wlthstanding that we have had nearly $780,
000,0G0 Of our securities returned to us during
! rho loe* several wears, all of which have
been taken up and absorbed by our own in
| Nestols. The money conditions of this coun-
try. as compared with those of European
nations, together with the outlook of the
| future. / do not hesitate to say make New
| York city at this moment the great financial
center of the world, and it would be well
for the American people to so recognize il :
and, furthermore in the alliance with Great
| Britain we have a combinatiOnk that will
dominate the world In view of these facts
business of the city of New York is on n
! safer and SOunder basis than that of any