The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-07-31
HENRY CLEWS'S VIEWS

HENRY CI<EWSS VIEWS
Henry Clews, in his weekly New York
financial letter, says:
THE stock market is apparently taking its
usual summer rest. and more of the promi-
nent leaders are absent on vacations than
is general. presumably enjoying the profits
of the last bull campaign and waiting de-
velopments before inaugurating another.
What the future of the market will be dur
ing the next six weeks is not easy to de-
termine. Generally speaking. the conditions
are highly favorable to an advance, but any
forward movement Is likely TO be held more
or less in check by apprehensions concern
ing the money market. Our bank reserves
are low and active demand for money
is expected very soon TO meet crop and
trade requirements, so that borrowers gen.
with real confidence. A little timidity on
this score will do no harm, for the crea-
ton of a bull movement at this time would
probably precipitate an undesira BILE twist in
the money market. Should speculation, how
ever, be kept within moderate bounds We
see no reason for alarm about the money
market. Firmer rates are both probable and
desirable, being natural sequence of pros
porous times. A good demand is likely for
crop purposes. but 1t should be remembered
that every year the West becomes less de-
pendent on the East on this account.
brisk demand for commercial paper seems
probable owing to trade activity. but here
too there are offsets from the facts that
merchants have better resources than ordi-
narily, and the big trusts which generally
carry heavy cash balances will supplant
large quantities OF commercial paper that
formerly came on the market. Added TO
these offsets are the facts that very con-
siderable amounts OF time loans will ma
ture in August and September, and any
sharp rise in money rates would probably
hasten gold imports from Europe. Neverthe-
less, the money market will not be a bull
factor for some time TO come.
Indications point TO a scarcity or paper
currency during the autumn months. AS
currency reform Is still a question OF the
future. 1t is imperative that the Treasury
Department take some steps for relief One
of the best and most practicable methods
would be the issue of gold certificates. Sec
rotary Gage cannot afford to be overScrupu-
lous about the limits of his authority. When
Secretary. Carlisle doubted his right to
issue gold certificates the reserve was be-
low the 500. 600 900 limit. Now the gold re-
serve is at about its maximum. over s2i6,-
600 600. and increasing daily. so that what
might have been prudent in the one case
becomes injurious timidity in the other. Mr..
Gage, however. Is a practical financier OF
high reputation, and Ii Is hardly likely that
he will permit minor technicalities TO pre-
vent his making our present financial sys-
tenn work as we'll as possible. Some re-
circulation but this is problematical while
present restrictions remain.
THE general business situation Is high
ly promising Nearly all the principal in
dustries are actively employed, and the iron
trade is experiencing boom beyond all
precedent. An extraordinary fact is the
comparative absence OF speculation. Our
mills are crowded with orders for goods that
are wanted for actual consumption. and for
once in history at least the SPECTATOR has
failed TO anticipate future wants Another
striking feature is the uniform belief that
We are 10 have one or two years of pros
perity like the present with little Interrupt
ton. The world and especially the United
States. Is recovering several years OF re-