The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-19

Al loalIlnOre-CiedIlAgSs sOS,UeSs balances,
At Cincinnati-Cle arings. 81, $50, 450.
Henry Clews's Views.
In his weekly financial letter, Henry
Clews has the following to say on the con-
dition of the stock market and the mon
etary situation:
The past week has developed a more
buoyant feeling in Wall-street circles The
money situation, which had encouraged the
recent selling of stocks, is becoming better
understood, and the expectation of strin-
gency has virtually disappeared. This OBJ
stacle being removed, there nothing to
prevent a general reaction towards better
conditions. The bears had succeeded in
breaking prices to a level of comparative
cheapness, the market was freely oversold
and there were substantial operators ready
to take in important lines of stocks when
they were satisfied that the bottom Of
values had been touched. The general drift
OF events during the week has tended to
warn the bears to cover and the bulls to
buy. Sterling exchange has fallen to the
gold importing point and some considerable
shipping the metal to this port. There has
also been some easing in the rates for
money, consequent upon offerings from OUT
of-town sources, and it has been accepted
as a good symptom that the new bonds are
being taken up more rapidly. On Thursday
the treasury placed $6.OO0,0O0 of cash on de-
posit with city banks, against security of
bond alotments. Also the monthly official
statement of foreign trade showed that our
excess of exports over imports continues
with but little abatement from the ex-
traordinary proportions of several months
past. This succession of encouraging events
has changed the tone of business at the
Stock Exchange and encouraged buying,
and at the moment the indications point to
a prolonged continuation of activity.
The money market has verged upon
somewhat critical condition, which had not
been generally anticipated. AT the begin
ming of July the associated banks held
about $3.50, 000 900 of specie and legal tenders,
and the surplus reserve stood at SCI, 500 900.
This extraordinary accumulation of lawful
money was regarded. as placing the banks
in an unusually strong position for meeting
the autumn demand for interior crop move
mentS and the expectation of an unusual
plethora of loanable funds until the end of
the year quite general The local stock
of money had never been equaled but once,
namely in February, 1894, when we were in
the midst of the great reaction from the
liquidating process consequent upon the
panic of 1888 Under such conditions few
anticipated that by the middle of Septem-
Der the New York banks would have their
attention attracted to the condition of their
reserves, and yet such is the fact. Their
stock of lawful money has fallen from
$3.50 00c eco on July to $3.50, 900 on Sept. 9,
and their surplus reserves from SCI, 900
to $1,000 900. This decrease is orly in
small degree due to the usual fell ship
ments of money to the interior, for this
amounting. up TO last week; 10 not more
than, S., 900, 600 or 100000. The explanation
of the position is to be fourd almost entire
ly in our war finances, and more especially
in the payments on account of the 5000. OOO,-
0c0 loan. The payments already made to
the treasury on this operation amount to
about S16O0Oe COO and considerably more
than half that sum has been temporarily
advanced by our local banks to institutions
in the interior for making these settle
ments. This has immensely swelled the
bank loans, but it must be remembered as
an offset against that factor, that the
banks are free to call upon their interior
correspondents at any moment for the
liquidation of these advances. The now
outstanding advances on this account are
gate but the larger 1t is the larger their
ability to accommodate local wants by call
ing in these outside loans and this factor
gives an ample security against the present
situation running into anything Ike
troublesome stringency. These facts is, really eIyy
banks, for if their reserves are compare
lively low they have the means of amply re-
plerishing them promptly in the event of
need II NAV suit the convenience of the
interior banks to employ at q higher rate
of interest the funds they have thus pro-
cured at the lower metropolitan rates, but
they are amply able to liquidate the adj
Vances on demand. the amount of money
in that class of banks is now very unusual
ly large, and for that reason also the de-
mand for money for crop movements is
likely to he exceptionally light this year.
Tt is also to be kept in mind that the dis
bursements of the treasury must continue
abao~naly large for some time to come. by
which the money drawn into the treasury
will be gradually returned to public circu-
lation or to the banks Another point Ia
voriilg an early return to comparative ease
In money is the resumption or imports or
gold. The eDga gements of that nature al
ready amount to about $5O0O,0Oo and. as the
August exports Of merchandise exceeded
the imports by $35 CO. 600, it is plain that the
trade balance is likely to keep foreign ex
change close upon the gold-impOrting point
for some time to &C me. Under these cOndi
tions there is nothing in the present condi-
ton of the bank reserves to make even
nervous borrowers uneasy We are plainly
on the way towards long period of COM
Portable ease in money.
The following official statement, showing
the course of the imports and exports of the
United States for the first eight months CT
the calendar year. will show the extent to
which this country has recently strength
ened it's financial position from its COM
mercial operations with other countries:
Merchandise
1898 1897 1896
Imports sl2e 412o89 s546 s25 TIT SAT-, 232 900
Exports 49,. 77S674,O25 6H, 697, $50 5S0.9SO 1872
exports .$852, 2S1, ss7 sos. ,55s $1Os $685. 1913
Cold
Exports 49,. 9,679,11S 32,542,659 56,s95,492
imports - 1872 4Os,ns ........... ..........
exports .......... s2O655, COS $24. S9S S55
Silver
Imports 49,. S19s13,5s3 $50, 769 623 $40, 1892
Exports 49,. 342S1, SS7 3S,024. 1856 1885, 1913
Excess of
exports $14,467,SS4 $17,227 ,56S so, 61s91
The exports of merchandise have exceeded
the imports by 1882. 600 GOO, while for the