The evening times., 1898-12-26
CONFIDENCE In THE
BUSINESS FUTURE.
Henry CleWs Predicts Con-
tinued Prosperity.
MONEY IN GREAT PLENTY
New Enterprises Must Be Launched
10 Give it Employment.
stock Market HoOminG. Hut No Sign
az Yet of Reaction in
MONEY IN GREAT PLENTY

The Henry CleHs financial letter is full
of promise OF continued and Increasing
financial prosperity for the country. one
of the notes struck this week is on the
large probability that New York will in
q short time become worlds market IN
the broadest sense, with trading IN the
old world securities, owing to the great
abundance of money here and the CON-
paratively high prices for American Stoc
and bonds The Clews letter finds as
yet no menace in the high tide OF speou-
lation in American shares at the present
time and in the continued advance in
prices with no recession.
lie says in part: The reasons To- the
present strength of the market are plain.
They are based upon the great changes
in the financial. industrial ami mercantile
branches which have developed during
the last few years. Confidence in the fu-
ture is universal These conditions, VIII CT
are already familiar, We're first recog-
nized by the large holders of securities
and shrewd buyers. Finally the great
outside public has become impressed with
these same beliefs, and is buying with
more or less determination Speculation
is consequently increasing, and at
rapid rate. but the danger point is not
yet in sight.
New buyers as a rule have ample
margins. and their success has not been
sufficient TO intoNiCdte them, although
caution is necessary. An unusual amount
of stocks and bonds have been paid for
outright. so that the floating supply Is
steadily diminishing, while no new capt.
tai creations of Importance have thus far
been reported; the industrials which
have been fioated not being strictly
classed SIS new enterprises.
As for the future of the market, it
is exceptionally promising, and its
course cannot be calculated by ordina-
ry precedents. Everybody desires re-
action. either to test values or to buy
back stocks which they have lost. Such
desires do not seem likely to be graft
fed so Ear as the general market is
concerned; though il is quite likely that
overtradiug will soon produce weak
spots Confidence in the general market
is based upon TWO important factors
increasing railroad prosperity and easy
money Increased earnings inevitably
exercise an important effect upon the
value of securities whose dividends and
interest have hitherto been a matter of
doubt When non-dividend-paying stocks
Join in the ranks of dividend-payers ac-
tive speculation is inevitable; while high
class ) and per cent securities have
risen TO about a 1 per cent basis be-
cause of cheap money.
There is no prospect of any serious dis
turbance of money rates for some time
to come Any stringency here would
quickly draw large sums from abroad in
settlement of Europe's indebtedness. Rates
are not only low in New York, but at Chi
cago and all interior centers, indicating
a universal abundance seeking employ
ment. The difficulty in finding satisfactory
opportunities for capital is one of the
problems OF the day. AS railroad con-
stTuction offers but a limited field. the
chief outlet appears to be in industrial
development and an expansion Of our for
eign trade. particularly in the export of
manufactured articles. American capital
must seek new ventures abroad. and keep
pace with our most opportune political eX-
pansion.
London and New York are now the
world : two greatest financial centers and
security marke.s. mat il will not be long,
/ venture the prediction, before the bonds
and stocks of many foreign nations, in
Guiding Government issues, will be ac-
lively dealt in at the New York Stock
Exchange thereby making il recognized
world market
THE recent advance in wheat and the 10
per cent a--gher price of corn at the pres
ent time over the corresponding date of
last year is a strong bull argument for the
Stock Market. High prices for cereals
make capitalists in the West.