The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-06-26

VIEWS OF HENRY CLEwS.
Concerning the situation on Wall street,
Banker Clews, of New York, says: There
has been a steady process of realizing for
some weeks, and affairs appear to be still.
more or less, in a state of reaction; and this
produces a disposition among leaders to let
the present drift take its course and wait
until a more stable basis has been reached.
In some quarters, 1t has been thought that
the new speculative interest, developed by
the large creations Of industrial consolida-
tons. would probably make an effort to
revive the bull feeling with a view to pro-
tecting their special properties. And opera
tions during the earlier half Of the month
appeared to indicate that an experiment in
that direction was being made; but results
have shown that there is little present dis
position among outside operators to par
ticipate In any such side campaigns. The
movement fell fiat; a slight advance in
prices brought out more sellers than buyers:
prices therefore steadily declined, and tho
small volume of transactions show a pre-
dominant disposition to leave the market to
find a natural bottom under the test Of
the summer dizziness and the manipulation
of the professional bears. And there are
reasons which may easily dispose conserva-
tive operators to such a course. There has
undoubtedly been a great deal Of extrava-
CANT speculation; impossible expectations
have been encouraged; a considerable fall In
prices from the top figures has occurred,
which has discouraged at least the most
sanguine class; the introduction Of the vast
new issues OF industrials has brought a new
and influential element into the market.
the effect of which cannot yet be foreseen;
and, in view Of this strained condition Of
the foreign banks, especially OF the Bank
of England and the Reichsbank, 1t Is not
certain whether we may not a to face
further returns of our securities from Eu-
rop. in addition to the net refiux, estimated
at $3.50, 900 .000, that has occurred within the
last eighteen months. Besides. without at
all questioning the reasons which have in
duced so many OF our industrialists to con-
solidate their interests, 1t is not to be over
looked that there is a large and important
class who entertain very opposite expecta-
a phase of sentiment not favorable to elicit
ing outside participation in bull movements.
t thHsen; sn th man naturally MaKs attend 1ae dI the eXtraor-
binary revival of our national trade are
subject to a certain amount OF counterac-
ton from a series of conditions entirely new
to our experience and yet of far-reaching
interest and influence. Coming concurrent
ly with the reaction from an extraordinary
speculative excitement, 1t Is natural enough
that these new elements in the situation
should arrest attention, produce some post
ponement of operations and incline cautious
view of the general conditions, it is not diff
icult to account for the comparative stag
nancy that Is steadily coming over the mar
ket and the absenteeism OF operators Incl
dent to the season can only be expected to
give force to this tendency OF affairs.
az -----.t- -.Lt:-L1a z~~-oo- A.
business of twelve leading railway COM
panies for 1898, as compared with the BAN
ner year 1892. shows that while the passen-
freight Is per cent, yet the working ex-
penses were reduced 50 per cent. SO that
me net earnings exnioited an inGrease Oh
penses and an increase In net earnings in
spite of a reduction of gross earnings-these
ment. and, as a consequence, improved in
vestments. These are encouraging indica-
tons that the apparent hopelessness of
hnding a way TO regulating railroad COM
petition does not necessarily carry with IL
the impairment of working profits Expe-
Renee Is demonstrating that the railroads,
taken as a whole, may be increasing their
dividend-paying capacity in the face of the
most reckless cutting OF rates. Evidently
our railroad system Is reaching q position
at which 1t Is getting the mastery over the
reckless financing upon which it was orig
inally founded and fs becoming one of our
best and most stable sources of investment.
AZ "a 0L'A III oo Nhl2 OLAC ~ w
understood and appreciated railroad stocks
Will rise 10 a range Of prices paralleling
the quotations for their bonds. The percep-
ton of this change lies at the basis of that
growing stability of value which gives to
the market for railroad stocks such an in
trinsic strength under the most trying con-
ditions, and this factor may be trusted to
give support to the general market against
possible testing conditions arising from the
new influences indicated above.
The continuance of gold exports-$3, 500,
90 having been engaged for shipment dur
ing the week-shows that the specie wants
OF the European banks have not been salts
fled by the previous remittances of $500
0S. The unusual lowness of the reserves OF
the Bank of England appears TO be the
main cause of the movement Only twice
within the last fifteen years has the re-
serve been so low in June as IL is now. The
bank might. under more assuring circum-
stances, have worked itself into a stronger
position gradually, but with the threaten
Ing conditions in the Transvaal and in
France and its liability to be called upon
for gold in connection with foreign loans,
| the management seems to have no recourse
but to get gold by purchase in foreign mar
kets. and this appears to be the explana-
| ton of its emand for American eagles.
We can, however, well afford to satisfy
the banks wants Our stock of gold is
superabundant and largely consists of idle
boards. and We could quite easily part with
$0.oo.00 with no worse result than impart-
l ket."
Saturday, Bank Clearfngs.