The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-04
COMMERCIAL RECORD.


Henry CleWs's Financial Letter.
Henry Clews. in his weekly financial let
ter issued at New York, says: On the
Stock Exchange we have had another week
of dizziness. The tone of the market, how
ever. has been decidedly strong, with indi-
cations of an approaching recovery in
prices. There has been a general suspen-
sion of speculative selling, and any mod
crate revival of buying would be likely to
give an upward impulse to prices. The
substantial backing to the market for tAe
coming week viii be the large buying for
the investment of the sem-annual dividend
and interest money. which will be paid out
on the first of the month and will be the
largest amount paid by corporations on
record. 1t will be but natural for the re-
cipients of this money to be appreciative
of the good treatment they have received
by the various companies who have con-
tributed this income, which they are likely
to show by reinvesting in the same prop
critics. What better evidence to base conf
dence upon can investors have than the
source their income provides? Such buying,
consequently, cannot fail to be large and
will be an important factor in advancing
piges in the immediate future. Besides
that, additional encouragement Will De
found in the good crop prospects in all di-
rections, the superabundance of money, and
the continued confidence in the result of the
war and its early termination AS matter
of fact there is scarcely any cause for dis
trust 10 come from any quarter. The war
has certainly served one wholesome pur-
pose in keeping Americans from INDUCING
in foreign travel this summer to very
great extent. The expenditures are not
likely to be more than one-half that OF
former years for that purpose, making
saving to this country of at least $5O,OUJVVO.
This is an item of considerable Importance
These stay-at-home people, instead of trav-
cling in Europe, will do so in this country.
and our internal transportation companies
will be corresponding gamers. In view OF
these factors. the market seems to be verg-
ing towards a condition in which fresh
rise in prices will become the oroer Oh the
Somewhat unexpectedly here. the Bank OF
England on Thursday put down its rate 70
81 per cent. This indicates more settled
feeling on the European money markets.
and no doubt in part reflects the revival OF
confidence due to the settlement or the dis-
pute between England and France on the
distribution of African territory That set
Element removes very serious danger from
the region of foreign politics ana, SO Tar, II
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 Influenced
by the prospect of American payments of
July interest and dividends to foreign hold
ers, which can hardly be estimated at less
than $40, goo eco. This liquidates a consider
able part of the balance of Indebtedness due
from Europe to the United States and so
far diminishes the tension in the foreign
exchanges. But there must still remain
large unliqudated sum of that floating debt
which may soon show its effect in a renewal
OF gold shipments to the United States. Bills
drawn against our new crops will be soon
forthcoming, and with less amount of i'm
ports to be RENTED for than usual it is
not impossible that, within the present
month, gold may be flowing freely in this
direction This foreshadows a continuance
OF the present ease in the local money mar
ket
1t is now generally conceded that of the
whole $500 ,000, coo of the National loan about
SIPS eco 600 will be taken up. by the small sub
scr1ptionS. This unexpected result has placed
some of the banks in rather awkward po-
siuon. Those institutions had sold their
Older issues OF bonds in order to get the
suit being that they are now left without
these investments and may have to pay a
good premium to replace what they have
sold. This is the more ineonvenient because
1t interferes with the ability of some of the
banks to accept treasury deposits, not hav-
ing sufficient securities to hypothcate
against them.
This large absorption of the loan by per-
sons of small means has been unattended by
the sale Of other securities to procure the
means of payment This investment of so
large an amount of the savings of the nom
investing class is not only healthy symp-
ton as to the well-to-do condition of that
class, but also Is a fact on which the coun-
try may for obvious reasons congratulate
itself. BY these subscriptions large mass
Of our people have increased their interest
in the fortunes of the Nation and put them
selves in position for feeling more closely
than ever their dependence upon good gov
eminent, conservative politics and sound
money; and more than this, the investments
ere gratifying evidence of the popular con-
hdence in the institutions under which the
subscribers are governed. There is prob
ably no other country whose masses could
make such a contribution to the wants of
the government.