The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-04-24
HENRY CLEWS'S VIEWS.

Henry Clews, in his weekly New York
financial letter, says: During the past week,
Wall street has shown some abatement IN
speculative operations. Such a high state of
excitement as has prevailed for nearly four
months past, almost without intermission
of the tension of exceptionally high prices,
CanDot be prolonged indefinitely. 1t must
encounter reactions, If not sharp breaks:
and. at the present moment, affairs seem to
be drifting towards a breathing spell. The
capitalization of new industrial organizations
since Jan. l has undoubtedly been quite
large. and the distribution of such a mass
of securities requires some time, and it is
not surprising II there be some postpone
ment OF further creations until this process
of distribution has made some considerable
progress. 1t is not to be supposed, however,
that the entire gross amount Of these issues
portion is taken by the stockholders in the
concerns going into the combinations, in ex-
change for the properties; and that stock is
likely to be neld mainly as a more or less
permanent investment by its recipients, and
therefore TO that extent, at least, can have
no important effect on the security market.
Another considerable portion of the issues
will be held in the treasury of the new or
ganzatons TO provide a reserve resource.
The stocks TO be placed on the market, in
probably most Instances, represent principal
ly the requirements of the combinations for
working. capital; and, judging from appear
ances, those requirements are wisely being
provided for on a liberal scale, so as to pro-
vide the concerns with a large ready money
resource and make them the less dependent
on borrowing facilities. From these facts 1t
WILL De seen that the probability Of the
market Deing dangerously flooded with the
issues or the new combines may easily have
been. overestimated, through hasty infer
ences from the largeness of the aggregate
OF the new. creations. People are apt 10 draw
disproportionate conclusions from great
totals; and 1t may therefore be prudent To
arrest tne pace at which this movement has
oeen running. for the last four months. That
course would mitigate the halt which has
Deen apparent in some quarters; it would
also invest the future of the money market
with more assurance; and any further crea-
tons or these issues would find their path
edsieI' WnlIe the consolidation movement
would become less an element of disturbance
than IL has been.
i take it that the present abatement Of
activity in the Industrial and traction
stocks is due to those engaged i'm these new
interests having concluded that the policy
OF moderate movement rather than of hasty
OF confidence In this important reorgani-
cation OF industrial capital. The movement
mas come In obedience to a series of nat
urai causes, and, II it is protected against
the faint of overcapitalization these issues
must have their place and standing in fhe
STOCK market, the same as they nave In
London and continental exchanges Rut
violent no matter how intrin-
slcally legitimate, create distrust and pref
uoice when they are pushed with an energy
pared. Up
In the absence Of acute excitement IN
III huuSiIdIs sUhleWnat more attention
mas Deen given to the railroad list, and
an improved feeling has prevailed in that
pranch or operations. But, while the mar
net mas Deen falrly well sustained. 1t has
OF damage 10 the wheat crop have given
courage to the bear side and lessened the
position on the part of the aggressive oner-
ators 10 await definite Information as to
the WINTER wheat. AT present the reports
rvsaruihs IL are more or less conflicting.
There Is no question, however. hat n viii
prove bad enough: still, it must be con
siaered that there will be a very large
amount or wheat carried over from the last
crop and the increase Of acreage will sive
an ample supply for export. home Con-
sumption and seeding. Besides there re-
mains sui the open question as TO snrinp
wheat. The spring crop generally exnsnds
as me winter contracts, and that Of las,
year reached 25,ooo.OO bushels, or 100. 600 go
DusnelS more than the output of 1897
"The money market has settled into q
TSonuIuioh OF greater ease, which appears
likely TO continue until the fall months,
ais from the depository banks I'm connecfton
with the payment to Spain, as TO causa
d dre MINIMUM on s1co OF oS dis ; The with
livery Hght affair, when IL is considered that
the governments excess of payments over
the money to the banks. The money mar.
kets or the interior are generally easv. and
sun rates here would be apt to bring cur
Foreign exchange Is sustained he Tho In
crease in the imports together with the in
nuenced or the remittance Of $50. 600. 900 10
spain. compared with March. 1895. the i'm
ports OF last month show an increase of
Sll.Z5l,oii. On the export side, there Is a
decrease OF S.156.52l from last year and an
increase Of S7.1S1. 722 compared with 1897.
Inc March excess of exports over imports
Is S5l:tO, Joy, compared with $1, 05S. 313 in 1905
ana SIo,9oo,S0 In 1897. For the first quarter
OF the year the imports and exports COM
pare as follows:
1899. 1893. 1907
Exports ....SS13. s14. 1856 $315, 9S4, 523 So6l .O55 2s
imports .... Isl, 81 S los, 464.d 1S6, 942, $50
Excess OF ex-
ports SIG .szs. 80 $50, 4ss,s77 s4112s7