St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-14
THE BUSINESS SITUATION.

All parts of the United States were
favored with good crops last year. but
i'll at least one section of the country
these bountiful crops have proved to be
hardly blessing. This section is in
the South, or rather the cotton-growlng
states of that section, where all bust
ness has, to certain extent, been par
alyZed by the low price at which this
staple is selling in the markets of the
world. The business of the Southern
railroads has been decreased on this &C
count, the farmers marketing the crop
slowly. The Southern farmers are re-
ally in very bad shape; money is scarce,
and speculation is limited. This condi-
ton undoubtedly explains the great de-
sire of the people of that section
for free coinage. They want relief and
need it, and are ready to grasp at any
thing that promises it. The silver and
Pacific coast states are in much the same
condition as the South. In many of
these states the business interests are
now paying the penalty for the era of
real estate speculation which has at last
come to an end.
In the Northern, Western and North
western, or graiH-producing states, all
Is different, and business is expanding
and improving in nearly every line.
Profits in many branches are rather be-
low what they should be, but improve
ment is noticeable. particularly in the
West and Northwest. The return flow
of currency from the country follow
ing the autumn movement of the
crops always results at this season in a
large accumulation of money in New
York banks, but this year the amount
has been unusually large. The reserve
now held in the banks of that finan-
clal center exceeds any reserve here
tofore held by the banks of that city
during the whole course of their history.
In Chicago, too, immense sums are held
in the banks. and throughout the North
west all the banks are filled with depos-
its. AS result of this easy condition
of the money market, good commercial
paper is in demand and good interest
bearing securities are exhibiting an
upward tendency. With money going
begging at 2 per cent per annum
on call and per cent on time in New
York, it will be miracle if prices of
things that money can buy do not rise.
Investors are very cautious, but it will
not be long until this gives way to con-
fidence. The defeat of the free coinage
bill will do much to restore and promote
this feeling. There is no denying the
fact that the agitation of this question
in congress is having an evil effect ON
business.
The jobberS of st. Paul are having all
they can do in the way of spring bust
ness. The dry goods trade is promis-
ing, and heavy woolens are in good
demand. The wool market remains
unchanged. groceries are active, while
the boot, shoe and leather trade is un-
changed. Bar iron is firm, plate is dull,
structural IRON has declined and the
steel market is dull.
The agitation on the option bills has
had depressing effect on the grain
market, and prices have declined, in
spite of the large export demand and
favorable cables. The Touring mills of
the Northwest continue at work to their
full capacity. Much of this is for
foreign demands. The business fail
ures last week aggregated 276. against
3l9 the previous week and 297 for the
same week last year.