The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-10
A YEAR OF PROSPERITY
REMARKABLE ACCUMULATION OF
WEALTH IN TWELVE MONTHS.
The Worlds Markets Are Americas,
Favored of All Nations.
New York Financier.


ending with July will not be forthcoming
for week or more yet. Enough is known,
however, to say that the twelve months
just elapsed have been the most notable in
the history of the United States-notable
not only In the volume of our exports, but
in every line of domestic business as well.
Bank clearings have been heavier, railroad
earnings have been larger, and trade of
every description has enjoyed a healthful
expansion. The steady accumulation of
wealth which the country has been making
for twelve months is not an unknown in
cident to the superficial observer, but few
even among those whose business it Is to
follow closely the trend and development of
affairs realize what astounding results may
follow thu matchless growth of our
industrial and agricultural advance
since July, last year. To begin with we
have sold to the world about 100000 600
more of goods than we have purchased.
That is our theoretical trade balance. In
actual settlement 1t will be much less, but
the fact remains that it is twice large
as the showing of any previous year. 1t
has already brought to the United States
one hundred millions of gOld-not as the
result of disturbed finances, but in pay
ments on merchandise account. The debt
is not yet paid, by any means and, i'm
probable as the fact may seem at present.
gold imports are an early possibility, or
rather, If the gold is not wanted, we will
witness an extension of credit to Europe
in the form of accumulated sterling bills.
The whole question hinges on the condi-
tion of the money market here and abroad
but eventually the money due on account
will find its way to the creditor nation-in
other words. to the United States Our
prosperity is not the outcome of foreign
food demands alone; In. the last year, the
ma Tfof Of nM TTr1ff TO
conquered markets heretofore held exclu-
sively by European dealers, and for the first
time in our history we have sold more
manufactured products than we have
bought. This is not due to accident; 1T is
the culmination of years of development
fostered first by a protective tariff which
encouraged American manufacturers to be-
gin business. Once placed on solid foot
ing, American ingenuity accomplished the
rest. and the consequence to-day is that the
worlds markets are Americas, and are
likely to remain so in the future.
A YEAR FOR FARMERS.
In the past twelve months the farmers
have been paid more money for their crops
than they ever received before; they have
cancelled mortgages that for years have
acted as drag on progress. and In one
State. which has been cited as an example
of misery in every campaign since 1884, the
banks are carrying an excess fund of $l2.-
OO0, COO, deposited for the most part by farm
ers. who are willing TO have it invested in
bonds, paying only per cent. interest
During the year several very important
railroad organizations have been effected,
and the condition of other properties has
vastly improved The traffic carried by the
railroads has been unprecedented in vol
ume. and despite unnecessary rate disturb
ances. by which profits have been foolish
" thrown away, the earnings of the COM
panies have reached higher figures than in
any previous year, and Is and 20 per cent
above the totals of 1892. which previously
had been tho record year of the railroads
In net returns the results have on the whole
been ever more favorable than in gross al
though the railroad managers have taken
advanta q of their large income TO carry
out extensive improvements, which in other
years, If made at all. would have been pro-
vided for out OF earnings Inc a9,, llloSt Ia
been the recovery of the valuable west
bound traffic which has been running at a
low ebb since 1898. Freight has moved to
the seaboard in enormous volume. and the
easier financial condition of the West has
brought about an increase in the purchas-
the healthiest signs of our present business
prosperity. The granger railroads have
naturally shared most largely II n TINS re
panies which have been enabled to place
their shares in the dividend list or to in
crease the division of profits to their share
holders. is a long one. But these extra
dividend distributions have not been con-
fined to the railroads in any one section
railroad industry, which next to the farm
ing Industry is the largest employer of labor
I'm this country, is enjoying uneXampled
prosperity.
THE BANK SITUATION.
The banking situation for the moment is
not satisfactory in as far as rates are con-
cerned. but in point of reserves and the
liquida ton of perilous or shaky accounts
1t could not be better. The loans of the ma
tional banks on May last were 2,097 mil
lions, as compared with / 1923 1-S millions one
year ago, an increase of nearly ia millions
Individual deposits at the last report were
in round numbers 1900 millions, an expan-
sion of 272 millions in twelve months. These
figures are significant of one fact-that the
country is on a prosperous foundation. The
reserves of the national banks on May 8
not lacking for legitimate enterprises. The
Improvement made by the national banks in
the twelve months ending with May is
worthy of more extended mention. Adding
together the various items which may be
claSsed as deposits, 1t is found that the total
increase in one year has been no less than
S94z millions, sum equaling 63 per cent.
of their capital stock. They have gained
81 millions in specie in the past year, but
have decreased their legals and other cur
rency about AZ millions. In the same time
there has been shrinkage of 1919 millions in
capital and an increase or more than three
millions IN surplus Circulation during the
year decreased almost ten millions and bills
payable and rediscounts are two and one
half millions less than on May a. 1897.
Their total resources on May last were
5fI1 millions greater than at the CORE
spending date in 1897. Statistics covering all
the state banks are not at hand but from
reports made TO state officials, the same
ratio of progress seems to hold good The
banking situation, in a word possesses a
latent strength that contrasts favorably
with any previous period in the country's
history.
The United States in addition to its i'm
ports has added sixty millions of domestic
gold TO its available currency supply, and
the per capita circula tion to-day is probably
between two and three dollars heavier than
twelve months ago. Another heavy crop
of wheat is in sight; industries are working
on legitimate advance orders. and the Situa-
tion for another years uninterrupted prog
ress could not be better. There is nothing
wonderful in the fact that a war such as
we are now engaged in has not affected
business, nor that a $500 600. 900 war loan is
being absorbed, without appreciably affect
ing business.
What must be the result of the season
of prosperity past and to come? The only
answer is that the United States during the
remainder or the century will be the IA
vored of all nations OF course il is not
impossible that unforeseen catastrophe NAV
turn back the hands of progress but
eliminating that remote contingency the
next two years will witness an expansion
on legitimate lines beyond anything known
in the last century. The lesson of 1893 was
n severe one. but Ii Will probably serve as
q check to over-inhation now If II does
the census of 1900 will reveal to the world
an accumulation of wealth which no other
nation can duplicate.
How Russia Is Preparing for War.
Stephen Bonsal, in Harper's Magazine.
At Nikolskoye, about seventy miles from