The times., 1898-07-03
SEES PROSPERITY COMING
Henry Clews, the Banker, Full
of0ptimism.
WAR SITUATION FAVORABLE
July Dividends. the Largest ON Rec
ord, VIII BE Reinvested - War
cans Light and Keeps Their
Money at Home-The Popular Loan

New York. July 2.-Henry CIews. the
New York banker. in his weekly letter
issued today. says of the general busi-
ness situation:
THE substantial backing 10 the market
for the coming week Will be the large
buying for the investment of the semi
annual dividend and interest money,
which Will be paid out on the first of the
month and VIII be the largest amount
paid by corporations On record. 1t viii be
but natural-for the recipients of this
money to be appreciative of the good
treatment they have received by the va
rious companies who have contributed
this income. which they are likely 10
show by reinvesting in the same prop
critics. What better evidence TO base con-
fidence upon can investors have than the
source their income provides? Such
buying, consequently, cannot fail 20 be
large and viii be an important factor in
advancing prices in the immediate future.
Besides that. additional announcement
will be found in the good crop prospects
in all directions, the superabundance Of
money. and the continued confidence in
the result Of the war and It's early termi-
nation. As a matter OF fact, there is
scarcely any cause for distrust TO come
from any quarter. The war has certainly
served one wholesome purpose in keep
Ing Americans from indulging in. for
eign travel this Summer 10 a very great
extent. The expenditures are not likely
to be more than one-haIf that Of former
10 this country of at least $780, 100000. This
is an item OF considerable Importance
These stay-at-home people instead Of
travelling in Europe will do so in this
country, and our internal transportation
companies viii be corresponding gamers.
In view Of these factors, the market
seems TO be verging towards condition
in which a fresh rise in prices viii be-
come the order of the day.
Somewhat Unexpectedly here. the
Bank Of England on Thursday put down
its rate to IL per cent This indicates
more settled feeling on the European
money markets. and no oouDt in part re-
fleets theZreyival OF. confidence due to the
settlement OF The dispute between Eng
land and France on the distribution Of
African territory. That settlement re-
moves very serious danger from the re-
gion Of foreign politics and so far il is
calculated TO revive confidence in the
European investment markets. in which
our own may possibly participate. No
doubt the action OF the bank has been in
huenced by the prospect of American pay
ments of July interest and dividends 10
foreign holders, which can hardly be es-
timated at less than S10,o9o.0Oo. This
liquidates considerable part OF the bal
anee of Indebtedness due rom Europe
10 the United States and so far dimin-
ishes the tension in the foreign ex-
changes. But there must still remain a
large unliquidated sum Of that floating
debt. which may soon show its effect in
a renewal of gold shipments 70 the United
States. Bills drawn against our new
crops will be soon forthcoming and with
a less amount OF imports TO be RENTED
for than usual IL is not impossible thar
within the present month gold may be
flowing freely in this direction This fore
shadows q continuance of the present ease
in the local money market
1T is now generally conceded that OF
the whole S200 00C. 600 Of the national loan
about S125 O00, eco Will be taken up by the
small subscriptions. This unexpected re-
suit has placed some OF the banks in a
rather awkward position. Those institu-
tioTlS haq sold tnelr older issues OF bonus
in order 10 get the new ones, which would
pay better, the result being that they are
now left without these investments and
may have 10 pay a good premium 10 re-
pace what they have sold This is the
more inconvenient because il .nterfe=ss
with the ability of some of the banks TO
accept Treasury deposits not having sus-
fcient securities TO hypothecate against
them
This large absorption OF the loan by
persons of small means has been unat-
tended by the sale of other securities to
procure the means OF payment. This
investment of so. large an amount of the
savings OF the non-investing class is not
| only a healthy symptom as 10 the we'll
to-do condition of that class. but also is
/ a fact on which the country may. Ser
| obvious reasons, congratulate itself BY
| these subscriptions a large mass OF our
| people have increased their interest in
| the fortunes of the nation and put tseH-
selves in a position for feeling more
| closely than ever their dependence upon
| good government