Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1899-09-19
AMERICAN FINANCIAL SITUATION.
Henry Clews Discusses the Influence OF
Recent Events on Money Market.

New York, Sept. 1s.-Henry Clews,
in his weekly circular just issued, says:
Wall street seems to be passing through
a somewhat premature equinoctial gale.
Trained observers have seen signs of
It's coming and have prudently held in
their sail: but to the majority the
storm has been unexpected, and they
are taken unawares.
The elements of disturbance are few
and simple. but they are not easily con-
trolled by ordinary trimming tactics.
Finance has encountered foreign OBJ
stacles of a kind to which there can be
no affectation of indifference. The
African question has lost none OF its
acuteness and may, at any moment,
become an element of serious disturb
ance at the worlds chief money center.
The semi-revolutionary condition of
France and the continued agitation of
the Dreyfrs question are factors which
impose more or ess'restraint at all the
monetary centers of Europe; and these
joint dangers appear at time when
our foreirn financial relations are sur
rounded with some uncertaintv. so that
we cannot we'll estimate the bearings
upon our exchanges of any adverse
happenings across the Atlantic. We
cannot be certain that anything now
remains to our credit of the large bal
ance arising from our extraordinary
surplus of exports over IMPORTS; on
the contrary, there are indications that
the return of our securities has about
liauidated that balance, and we have
for some time been .closely vergine
upon the possibility of an outflow OF
gold to Europe.
Whilst these external possibilities
confront us. the condition of the home
money market is not assuring. The ex-
sraordinarv revival of business has
caused corresponding expansion OF
bank loans and has at the same time
increased the demand for currency in
the retail circulation. With banking
system that Indirectly compels the
banks to augment their stocks of law
ful money in proportion as they ex-
tend their loans, we are brought face
20 face with an acute scarcity in the
circulating medium. The universal
employment of the working classes at
rising rates of wages, the increased
holdings of cash among country retail.
ers, and the rapid rise in the prices ci
goods, have coniointly produced ne.
cessitv for an expansion of the volume
of money: and this need makes itself
| felt at the moment when the banks oil
| the interior are drawing their deposits
| from the metropolitan banks in order
to facilitate the marketing of large
crops of cotton and cereals. Unfortu
natelv we have no effective resource
| for increasing the amount of the mon
ev circulation in order to satisfy thess
necessities: and the result appears ir
a reduction of the cash reserves of the
New York banks to close upon the
''dead-line,' at point about midway
in the usual fall effiuN of money to tbs
agricultural sections,
The situation calls for caution, but
does not warrant alarm. 1t affords lit
tie reason for expecting upward reac
tions in securities in the early future
but neither does it justify any incor
tinent realizing. When the complica
tions have had their worst effect upor
/ the stock market, a basis will be lait
for recovery in values that can hard
| ly fail to result in very active "bull'
campaign. Upon the whole, a shar.
squeeze in the money market ,woult
have important compensations. il
would check certain unwholesome ten
4 denotes that are being fostered by thu
extraordinary activity OF business, ant
would strengthen confidence by mod
Grating the drift toward eXcesses botl
in industry hnd finance
! The death of Cornelius Vanderbilt
~ la Y w . q 3 4. f y .