St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-01-18
The Expected Rise in Stocks in Wall
Street Persistently Refuses to
Materialize.
A Prediction Ventured That Jay Gould
Will Shortly Turn Up in the
Street Again.
General Resume of the Recent BUSH
ness Moves Made by the
Bank of England.
Bankers Argue that America Must
This Year Export n Large
Amount OF Gold.
"a Market OF ImbeciIes..

Special to the Globe.
NEW YORK, Jan. 1.-THE Sun will say
tomorrow morning: Not only has the
much-eXpected January boom not turned
up' but state of affair very annoying to
the brokers and spectators has set in in
Wall street, and ii threatens to last for soma
time. The outside public keeps away,
while the professional spectators and
cliques are so heavily loaded with stocks
mat they cannot possibly come into the
market except in the character of sellers.
About week ago the writer met Mr.
Morisini, who gave an excellent definition
OF the present condition of the market
IL is market of imbeciles. You can't 20
into II on either side without losing money
III you jump quickly in and out you may not
lose much, but you certainly lose your COM
missions and carrying charges. / know I
don't want any of Il, and am going away N
California.
Upon being asked whether he was Ieav-
ing Wall street for good the Stalwart Vene-
tlan answered with a good-natured smile:
You know, this leaving Wall street is like
taking New Years pledges. We all take
them and all break them, and II in three or
four months the market is tempting I'm sure
L shall DO in IL again" "And how about MIR.
GouldT' was asked. ''Well, MIR Gould is not
n bit better than l, but he, too, does not want
STOCKS Ut present prices.
These views begin TO be shared in by
great many of the big operators on Wall
street, and together with the threatened
railroad war and the decrease in
exports of product, as well as the
uncertainty of the issue of the
silver question, must naturally keep the
stock market down, unless there should
hOppen TO be great break in the grain
market. Since the prospects of shipments
| OF gold have caused business men To take an
extra interest in statistics of exports, 1t will
not be out of place to give here few
| figures taken from the statement Just issued
by the bureau of statistics made to the
secretary of the treasury. The totals repre-
| sent the exports from the United STATES for
the last two years, and are
GIVEN IN ROUND FIGURES.
1854. 1886.
Beef, pork and
Mineral oils (petro-
leum, parattne,
etc. ).......... S49I0O,OOO $40 200, GOO
Bread stutfs. $li7, 100000 Sl29, 200, 900
Cotton total for
| only from months
ending Jan. l.. SIG, zoe. 900 $l0I, 500, 900
Except for mineral oils, therefore, all ex-
ports show decrease, and in one case. at
| least. that of breadstutfs, a much more
| serious one than is indicated by the above
| figures, for prices are much higher this
| year than they were last year. This con-
ditlOn OF our exports and the return of
large blocks of stock, lead many
bankers here TO believe there will
be considerable shipments of gold.
/ The present condition of the money mar
ket also leads to the same belief, for the
Bank of England has lost a large amount
of gold, in spite of the high rate OF discount.
per cent, which is almost unprecedented
this time of the year. The reason of this
| high rate is rather curious. The usual
course of the London money market
is that a rise begins i'm September
and eliminates in November, but this
| year there was no movement until the mid
| die of November, when the Bank OF Eng
land raised the rate from . TO 3 per
cent. There are, however so many large
| financial Institutions outside of the Bank
of England in London that they
| felt themselves strong enough 10 re-
fuse to follow the example OF the bank,
and the latter was Obliged to go into the
market, and, by borrowing on consols, to
loosen the amount of loanable capital.
| The precautions, however. proved futile in
preventing the outflow of gold. and the
bank was obliged to again puts its discount
to per cent. This gold, it was thought,
would soon return, but the
UNSETTLED STATE
of affairs I'm that unhappy island forced the
banks to protect themselves by keeping a
considerable supply of gold on hand. Then
came the issue OF the Egyptian loan and a
considerable export of gold from the Bank
of England to Egypt. The greatest drain.
however, came from Berlin, where money is
usually plentiful this time of the year.
The reason for the great demand for gold is
somewhat in doubt, but the most feasible
| explanation is that the Russian loan which
was placed in Berlin has caused it. The
agricultural depression which has existed
some time i'm Russia is well known, and the
| try and assist the farmers. This,
as everyone knows, is most
dangerous proceeding, and the only way
the bank can prepare to meet q financial
crisis is by having large stock of gold on
hand. The situation must be therefore
summed up as follows: The Bank of Eng
land holds the reserve of gold for the United
Kingdom and Ireland. The reserve is
heavily drawn on both at home and abroad,
and the supply has enormously decreased.
The only means that the bank has of
increasing its supply is by raising
the rate, which will induce other countries,
such as the United States, to send their
gold there on account Of a high rate Of in
terest Thus our bankers argue that. even
without taking into account the falling of
in our exports, we shall have TO export a
large amount of the precious metal.