Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-01-22
CLEWS TAKES
cheerful VIEW

In his special letter of January II,
Henry Clews of New York says that
since January l the stock market has
been marking time, showing a dis
tinctly better undertone without any
pronounced increase in activity or
strength. Underlying conditions are
certainly better than a month ago"
January disbursements were estimat-
ed at about 245,000,000, which had
not yet appeared in the investment
market to any extent. In big flota-
tons Baltimore & Ohio had led the
way with a $64,0OO.O0O issue. The
present ease of the local money mar
ket has already had the effect of
starting gold exports. The loss of be-
tween $500 100000 and $500, 000,0 900 by
the Balkan war aggravated strain in
the European money markets caused
by excessive speculation, and exports
of ten millions in gold to Europe were
likely to be increased to ten million
dollars before the demand was salts
fled.
That we should be shipping gold at
this season is somewhat unusual"
says Mr.. Clews. I'm spite of the re-
turn of 100000 or $50.000,00
American securities at the time of the
Balkan outbreak, this country should
still have a liberal credit abroad, con-
sidering the large excess Of exports
over imports which continued through
1912. The unusual character Of this
movement emphasizes two points.
First, the exceptional strain in Eu-
nh tn n
readiness to give financial aid to Eu-
rope. The Bank Of England rate re-
mains unchanged, loans having been
reduced $4,000, 900 this week and the
reserve increased $13,400,000. In all
probability an advance in the bank
rate would have occurred had we in
sisted upon importing gold a few
weeks ago, as was within our power.
Once more Europe is depending upon
New York for financial aid in time of
stress L.
Mr.. Clews refers to the judicial and
Legislative Developments in Washing
ton and concludes as follows:
"The unfayorable effects of tariff
and trust agitation have been pretty
thoroughly discounted. So, too, has
the lessened activity of business, gold
exports and the Balkan war Prices
for many Of the best stocks and bonds
are at a figure that yield very attract
I've returns, especially when compared
with the recent fall In money rates.
Cheap money usually means better
prices for stocks, and In view of the
sharp decline, from to 20 points in
the best shares during December, the
market is now entitled to a reasonable
recovery There is a steadily improv-
ing demand for investments which
will become more marked as the
month advances Bonds are already
improving. January disbursements
were much larger than usual, and in
spite Of the increased cost of living, a
goodiy portion OF these funds will seek
reinvestments. Taking the situation
as a whole, we are still inclined TO the
more hopeful views expressed in these
advices week ago. The situation is
by no means entirely an optimistic
one, but the business mind as we'll as
the political mind has been over-im-
pressed with pessimistic views, and it
is time to assume more cheerful at
titude in order to get back to the nor
NAL and recover our balance financial
ly as well as politically. For the time
being at least the market will most
likely have the support of powerful
banking interests who have under
written the new flotations." ~