St. Paul daily globe., 1891-08-17
Concerning ..Life-sayers..

Mr.. Morgan is being trotted to the
front again as life-saver-in-chlef. 1t
might have been supposed that this
idea was played out in Wall street after
the Reading business. The story OF the
way that property was saved and the
profit to the savers will make an inter
esting chapter some day. The firm of
DreXel, Morgan & Co. is composed
of hard-headed, cool men, who know
how to make money and work
their eminent responsibility for all 1t is
worth in the market. If they have
taken hold of Union Pacific there may
be expected another Reading expe-
rience. Everything will be doomed un-
til the public has been loaded with the
securities which it is desired TO sell. and
then the bottom will gradually drop
out. There is some speculative vitality
still left in the patient, and Wall street
has to live.
1t was noted that the general market
resisted with considerable Stubbornness
the depressing effect of the drop in
Union Pacific This was a good
bull sign. 1t encouraged the traders
when the turn came to go in wrongly.
Some new "plungers" developed among
them. who attracted no end of atten-
ton. They spread themselves all over
the list, and bought and sold OH a
scale which made the older
professionals stare with all their eyes.
But the market was we'll handled. The
principal efforts were directed to bid
ding up those stocks which were known
to have a good-siZed short interest i'll
them, and Burlington was made a leader
on this account. So well was this done
/ that the price of the stock has been
! forced up to where it was some weeks
ago. The Boston insiders fought the re-
cent decline most vigorously, as they
| had good reason to, III view OF the uec-
essity for maintaining a market for
their bonds, and, of course, the good
crop outlook gave them encouragement.
| 1t may interest these gentlemen to know
that the strongest bears on their STOCK
are people who may also be called i'll
| siders. and whose views are based on
their official knowledge OF the prop
erty.
Russia Played a Part.
The other Western stocks were taken
up IN turn and advanced. There was
cause for this in the weather conditions.
| The recent not wave brought no end OF
| personal discomfort, but it was just the
| thing the corn crop needed, and has
| brought it forward by leaps and bounds.
| If it escapes an early frost the crop is
safe. 1t will not be banner one, yet
| fully up to the average. Then
| the Russian government kindly
! gave a tremendous speculative i'm
| pulse to the markets by its decree for
| bidding the export of rye. 1t is long
| since any government action has so
| thoroughly stirred the markets of two
continents. Its impulse was first feltin
| Germany. from there it was commune
| Gated to France and England, and then
| it came to us. while to-day the grain
| markets of Chicago were wild with eX-
! citement, wheat advancing five cents
per bushel. The impulse was
! felt in the stock market. Every
body seemed filled with de-
sire to buy, and a bank statement
which showed only small loss i'll the
surplus reserve brought the climax.
There was rush of, the shorts to cover.
while the bull combination BID up the
price of everything i'll sight, so that the
market closed under full head OF
| steam.
1t is wholly on the crop conditions
| here and abroad that the bulls are work
ing. Estimates are given of engage
| ments of wheat for this and next
| months export running up to between
| 0,GOO, 600 and 100000 bushels. If this
| be true, within ten days there should
| be seen the effect in imports of gold. Ii
| is contended that very large amount
| Of the gold sent to France was sent in
| anticipation of wheat imports later in
the year. and that the Bank Of France
| IS now in position to pay for this wheat
! in gold without disturbance of money
| markets. These theories will soon be
put to the test. 1t is strange, tinanciers
| say, that more commercial bills are not
| seen on the exchange market, or, at any
rate, why exchange rates should have ad-
| vanced during the week. instead of de-
| clining. There is no ready explanation of
| this. The Financial Chronicle notes it.
and hints that London may be selling
silver to America. 1t may be selling
some more securities also. If it has. the
market has absorbed them without much
| difficulty. London was credited with
| selling a good deal of Union Pacific and
some Louisville & Nashville. The lat