Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-29
FINANCES ARE SOUND
Henry Clews Says Trade is
Active, Labor Prosperous,
Building General
WALL STREET EXCESS STOPPED
Believed in New York That Money
From the Interior Will Begin to Re-
turn in January-French and Spanish
Loans in London Market VIII Sus-
tain Rates-Debt Reduced.

| New York, Dec. 29.-The weekly
| financial letter from the banking house
1 of Henry Clews & Co. says: Three or
four months of persistent and severe
| liquidation have exerted a sharp sober
ling effect in Wall street. Enterprises
that would readily have been under
written several times over could not
now obtain hearing. The conviction
that halt is necessary in financial op-
erations, and that a thorough taking of
istock must be patiently endured, is one
| OF the most striking features of the day.
| This ultra conservative mood which
began near the top, where recent ex-
cesses were most freely INDUCED, has
Ipermeated thru all the various levels,
until now the smallest operator is proud
| of his conservatism. AS rule, when
a wave of opinion has run to this ex-
trene, it is wise to ask If it has not ex-
hausted itself. We have not had a
drop Of 20@30 points in a majority or
good securities; the speculative mania
| has been well subdued in consequence;
severe liquidation has taken place with
out disaster; our debt abroad has been
materially reduced, and our financial
situation is certainly less threatening if
rot much stronger than six months ago.
That such heightened and severe LID
uidation could take place without
bringing serious disaster is a remarka-
BILE proof of the soundness of the coun-
|try's trade and industry outside OF Wall
street, where the overriding thus far
has been chiefly confined.
Among the favorable conditions out
side of financial circles are these: The
activity of general trade; the prosperity
of the laboring classes; the sustained
demand for iron manufactures showing
new development and construction
everywhere; the prospect of larger ex-
ports of corn and cotton. and the con-
tinued large gross earnings OF the rail-
roads, which, will soon be sWeiFed by
advanced traffic rates. The western
reads are still overcrowded with traffic.
In these respects we enter the new
wear under favorable circumstances;
the probability being that there VIII be
no lessened activity provided prices are
kept at a reasonable level ana expenses
are not unduly increased. BUSINESS
profits have already been seriously
threatened by the advances in materials
and wages. and further increases III
these particulars would pc q hiSiioe
threatening national prosperity.
BY the middle of January local con
ditions should begin to improve, as
funds will shortly be returning from
the interior more freely. Ihere IS no
early prospect, however, or easy rates
and the influx of currency may easily
be delayed by the activity OF trade ana
speculation in the west.
Another factor that must be reckoned
with is the prospective early issue OF
large foreign loans, which would nave
heen nut on the market last autumn
but for the situation in New YORK
which has since been partially renewed.
An important Transyaal loan is to pa
expected, altho this operation may be
largely confined to funding the treas
,,rv bills issued during the war into
fixed obligations. This TRANSACTION,
therefore. is not likely to be SO I'M
portart factor in the international
money markets as the new Frencn
loan, preparations for which are now
being made. ard which is expected 10
a aggregate between S150,o00,o00 and
5000 600 900. This suggests a large
withdrawal of French funds from the
London money market, and, as a con-
siderable Spanish loan in London is
to follow the French loan, firm money
rates will prevail in London for some
tirre to come Whether this will hasten
gold exports from this side or not ce-
mains to be seen.
Our debt abroad has fortunately been
much reduced; and If Europe would
only invest in coed American railroad
securities with more freedom the adj
vantage would be mutual. British rail-
roads now pay such small dividends
and are so obsolete in their methods
that American railroad shares shine
IN comparison. The English railroads
will have to be Americanized before
they can again become good invest
ments. This means enormous outlay
for improvements and new equipment;
things which have already been done
by the American roads. The British
investor could do nothing better than
exchange his holding in obsolete, low
dividend English railways for modern
moderate dividend paying Americans.