The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-09
HENRY CLEWS'S VIEWS.

Henry Clews in his New York financial
letter says: I'VE have had the first weeks
taste of a financial year that is anticipated
with more than ordinary hopefulness. 1t has
been in some measure interrupted by the
holidays and comes too early TO receive
the full impulse of the extraordinary dis
bursements of January interest and divi-
dends on securities According to careful
estimates these payments at New York
alone amount this month to about $110,0OO,-
co., which is far beyond all precedent. This
fact affords the best possible confirmation
of the general impression THAT the past year
has been one of general and unusual pros
perity. These payments must inevitably
have an effect upon the market for securi-
ties, for apart from their encouraging spec
uIatiVe operations they must be attended
with considerable reinvestment of the earn
ingS; at the moment, however, it is too
early to look for the full effect of these in
f1uences upon the market.
There are certain factors in the situation
which tend to restrain the effect of these
influences. These January disbursements
have been anticipated, and other conditions
have for some weeks past been steadily
forcing up prices. The triumphant outcome
of the war; our great success in the peace
negotiations, the manifest prosperity of the
country at large, the prospect of a con-
tinued large expansion OF our export trade,
the extraordinary earnings of the railroads,
the steadily rising trade balance owing to
this country, the hopeful implications sug-
geSted by our constantly rising bank clear
ingS and the comparative ease in the money
market-these facts have for some time past
been eXerting strong combined upward
pressure upon securities, the effect of which
is now seen in unusually high prices for the
better class of stocks. Those securities
therefore present little inducement for buy
ing: on the contrary some of the more VEN
turesOme bears are experimenting on SELL
ing them Nor does it help the market that
certain bold deals in industrial and rapid
transit properties are being launched with
advances in their stocks so startling as to
suggest danger and distrust. There is how
ever, a considerable range of Second-claSS
stocks, some Verging towards dividend
paying position and others expected to be
benefited by impending new alliances which
have not yet risen at all in proportion to
the advance on the more stable stocks.
These are receiving the special attention of
buyers and seem likely to realize higher
prices as the January investment earnings
come to seek employment more fully.
Thus the situation, though a very strong
one and backed by great frmness among
holders yet presents some features not en-
tirely inviting to cautious operators 1t is
not impossible that prices generally may
rise to a still higher level. That must large
~ depend, however upon the extent to
which that class of outsiders may be forth
coming who usually stand aloof until the
market is booming and prices are at the
highest Considering the general prosperity
of business it does not seem improbable that
there may be some considerable influx of
this sanguine class With such co-opera-
ton il would be easy for influential local
operators to engineer further rise and
Il
matters take such a course we may witness
a mixed state of the market with free
oscillations in prices in both directions In
view of these as yet undeveloped condi-
tions il is to be expected that influential
holders will wait for developments before
either increasing their holdings or realizing
In any event, however, and allowing for the
possibility Of some reactions after further
trial OF the market it seems reasonable to
expect that under the existing hopeful con-
ditions OF the country at large and with
O. great wave of national prosperity manifest
to all ewes the market for securities for a
long look into the future will rule at a much
higher range of prices than we have been
accustomed 10 during recent years. For the
moment, however, we would suggest to our
friends who may contemplate buying that
their attention might be advantageously
given to certain railroad stocks backed by
a good position and prospects but which
have not yet reached their real value
compared with others.
eve have now a fair prospect of period
of decided ease in money extending over
some months Apart from the drift of cur
rencv from the interior usual at this sea-
son symptoms Indicate q probability of the
renewal of imports Of gold. There Is less
disposition towards the temporary employ
ment Of funds In foreign bills Of exchange,
and so soon as those investments materially
ahate an influx of gold would be almost in
exftable Within the past week 81. 500 0C0 Of
the metal have been engaged for shipment