The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-11
HENRY CLEWS'S OPINIONS.
Monetary Situation and Presidents
Message Considered.
var Street Financial Review.

Wall Street Financial Review.
Some disappointment is expressed at the
hardness which the stock market shows in
responding to the many existing favorable
conditions. With unusual prosperity in all
parts of the country, it has been reasona-
bly, and generally supposed that higher
prices would prevail during the fall and
early winter months. So far, these ex-
pectations have not been realized, chiefly
because of the high rates and limited sup
ply of money. For ordinary business pur-
poses there appears to be no serious lack
of funds at good. yet not exorbitant rates;
while the moment speculative demands as
sert themselves with any force stringency
is at once prevalent. This restraint has it's
advantages, in that ii cools the ardor of
overenthusiastic or indiscreet bulls, and
paves the way for a more substantial
movement later on. 1t is far better that
the market should have ample season in
which to become Well established on the
new level than to permit runaway spec
ulation which might easily invite severe
reactions and a general destruction of con-
fdence. There are indications that this
view is taken by some of the influential
interests in the street." who, while COM
are not at this time willing TO lend their
powerful aid TO any upward movement.
An even more important factor in the sit
uation than the disposition of big operators,
one. in fact, which largely controls them,
is the money market. High rates for
money do not always prevent bull move
ment, but it is quite certain that just now
any sucn campaign would be quickly
brought TO grief by prohibitive rates. The
bank reserves are much below the usual
average of the season. Trade activity re-
tards the return of funds from the interior
The treasury continues to absorb money.
and the offer to buy bonds affords only par
tial relief, as holders have other uses for
them than the interest they pay. In short,
there is a largely and perfectly healthful
demand for money, which cannot freely be
met because of a cumbersome and anti
quated currency system which prevents ex-
pansion or contraction according to the
needs of the moment. January disburse-
ments will amount to probably $l50, 900, 000
preparations for which will keep money
more or less active meanwhile. Still an
other matter of Importance must be reck-
oned with. and that is foreign exchange.
Sterling has advanced owing to the high
rates in London, the Bank of England rate
OF discount being at its highest point since
the Barring panic. II cannot be said that
this stringency is due to weakness or fear,
but rather TO prudent determination Of
the Bank of England to protect its gold re-
serve and prevent demands from the Ar
gentine or elsewhere. Trade activity is al
most WOrIdWlGe so the demand Tor money
on this account is not limiteu to the United
States. and with partial cessation of the
gold supply through the Transvaal war ii is
not surprising that London should take
means of self-protection. Gold exports
from the United States may happen but do
not seem probable, for money rates would
quickly harden in response to such
movement.
The Presidents message has won more
approval than usual. His clear utterance
for the gold standard, his prudent yet pro-
gressive attitude on foreign affairs. and MS
advice 10 Congress to give the monopolistic
trusts careful attention-the three most i'm
portant topics, treated without a partisan
touch-all show that he Is fully entitled
TO the confidence of the people. The pres
ent session of Congress has much important
work before II. Foreign questions will oc-
cupy much OF its time. and domes,ic prob
lens Will require some serious thought. As
disturber OF business this Congress, how
ever, promises 10 be less serious than usual.
On the contrary, II Is probable that one OF