The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-03
THE PAST AND FUTURE
BUSINESS REVIVAL OF 1897 AND
OUTLOOK FOR THIS YEAR.
Features of the Financial, CONNER
ciaI and Industrial Situation Re-
viewed by Banker Clews.

NEW YORK, Jan. 2.-Henry Clews, in
reviewing the business revival of last year
and the prospects for 1898 says: The year
just closed followed three successive years
of almost unprecedented depression and
disturbance of confidence consequent
upon the imperiled position of our
monetary basis. The national election
had defeated the silver faction but by
majority which did not suffice to imme-
diately restore confidence. When the Re-
publican party came into power, with the
Presidents declarations in favor of sound
money and the passage of tariff calcu-
lated to remedy the effects of the Wilson
act, a wave OF revived confidence swept
over the whole country; and, from mid
summer to the end Of the year. there has
been one continuous revival of business.
Providence too has been propitious to our
welfare. AT a time when the failure of the
cereal crops was general throughout Eu-
rope, our harvest was abundant, and we
have been able to export at high prices I'M
precedented quantities of wheat and corn.
AT the beginning of the revival, important
sources of consumption were blocked by
large accommodations of unmarketed prod
ucts, most of which have since been dis
posed of at some recovery in prices, there
by preparing the way for a profitable in
crease of production during the coming
year.
simultaneously with this recovery in the
home markets, we have been favored with
extraordinary increase in our export
trade; the shipments of merchandise for
the first eleven months of the year having
amounted to 1914 6OO, 600, against $SSS, 500, 900
in 1896, $732. 300 900 in 1885, $74O 900 in 1894
nj n,
in the export trade has been favorable to
the foreign gold movement, our net exports
OF the metal during the eleven months hav-
ing been but S. zoe, 900. These figures, how
ever, imperfectly represent the actual
course of the foreign trade balance; for we
have bought from other countries certainly
not less than $75 900 (market value) of
our securities and have at times been lend
erS to Europe to the extent of $35 600 900 to
SAC, O0,OOO, as means of preventing impor-
tationS of gold WREN we had no use for it
and when London, Berlin and Paris could
Ill afford to spare it. How such operations
became needful will appear from the fact
that, for the eleven months, our exports of
merchandise and silver bullion exceeded
our imports by 1926, 0C9 0OO
1t is not to be inferred that the large in
crease in our exports is mainly the effect of
the unusual shipments of breadstuffs. There
has also been an extraordinary addition to
our exports of manufactures. Under the
pressure of recent hard times our industries
have been enabled to so far reduce the
cost of productiOn-without at the same
time putting down wages that our ability
to compete with other countries has opened
to us q much increased area of foreign mar
kets. Indeed, the signs of the times have
afforded clear indications that at last we
have attained an economy in production
which will open new markets to us corre-
spending to the rapid increase in our indus
trial plant and the rising ratio of the pop
ulation which must be dependent on man
ufactures. We may reasonably expect that
this expansion of the exports Of manufac-
lures will prove to be but in its beginnings
and that this branch of trade will this
exceed that of 1897.
MUST NOT LOSE OUR CHINESE
MARKET.
Just as the year closed events happened
in eastern Asia which foreshadow the early
opening of the vast empire of China to the
marketing of manufactured products. To
this country, impelled towards manufacture
ing by new natural drift of it's rapidly
increasing population, this is a most well
come foreshadowing of an expansion of our
trading relations with the worlds greatest
empire 1t is to be hoped that our gov
eminent will exercise the utmost vigilance
in guarding American interests pending the
struggle among the European powers to
gain control of the best positions for Or
warding their aggressive purposes. We se-
sire no foreign territory but we canliot
afford that military governments shall be
permitted to invade our established treaty
rights or divide up China at their pleasure
ers from the best markets of the empire
This is q matter upon which the attitude
of the United States should be we'll under
stood and openly declared without delay
The transportation of our large crops
and the increased movement in merchandise
during the last half of the year have nat
urally brought large benefits to the rail-
road interest. During the first eleven
months of the year 124 roads show an in
crease in gross earnings from 1853, 100000 in
1896 to $4S1, 600, 900 the past year most of the
gain having occurred within the second half
of the latter period. The net earnings ex-
hibit a still better ratio of Improvement.
For the ten months ending Oct. 81 the net
earnings of 118 roads were $1S7, 100000, COM
pared with 1858 700, 900 in 1896. showing an in
crease of Hip per cent The effect of this
sudden recovery. together with the con-
elusive evidence it afforded that the general
trade of the country was undergoing
thorough regeneration. became apparent in
an active speculation in securities, the eff
feet of which upon prices is shown in the
following comparison of the quotations for
leading stocks on the 15th of June, with the
highest figures reached during the culmi-
nation of the rise: