St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-25
FUTURE FULL OF HOPE.
The PROSPECTS F0R STOCKS MT
ALTOGETHER BAD.
CLOSING ACCOUNTS OF 1898.

A Halt in the Renewed Export
OF Goid-How Far the Tariff
Question Affects Business
Only Conjecture = A Revival
OF Industrial Activity Is tx
pected. Jtta
Id
Special to the Globe a,T
New YORK, Dec. 24.-The year. in
Wall street draws to Its close with the
usual disposition TO contract operations
and close up accounts. To that extent,
this season always affords opportunity
for "bear" operations; and this year
those opportunities are perhaps unus-
ually attractive. The "industrials;'e ARE
In an unusually exposed position. Not
only have they suffered from the gen.
eral depression Of trade, but it Is prob
lematical as to how far they are likely
to be affected by the new tariff, and the
uncertainty on that point keeps them
constantly exposed to attack. The os-
citations in this group Of stocks tend to
keep the general list more or less un-
settled; and this fact, together with the
interruptions incident to the holiday
season, has somewhat impaired the
general tone of the market. There is,
nevertheless, a steady undertone Of
confidence in the better class of railroad
stocks, which is supported by the still
active demand for bonds. 1t is gener-
ally conceded that the prospects of the
railroads for the next few months do
not warrant the expectation of large
earnings; but that prospect has all offset
In the large economIzing of operating.
repair and construction OUTLAWS, in the
GRO WING CONSERVATISM
OF management. and in the fact that the
net earnings show an improving ratio as
compared with the gross. Rumors of
certain city ban ks having suffered in
connection with the Beeeher-Schenck
troubles, and the closing of the st.
Nicholas bank, developed Thursday and
Friday some what unsettled feeling
1t was previously known, however, that
the Institutions had suffered serious
losses; a nd the effect of the surprise
was correspondingly eaSed. Coming,
however, with the contracting incidents
attending the close of the year, these
occurrences have had depressing effect
for the moment; but the event is
scarcely calculated to have any serious
results. 1t is perhaps not surprising
that some such developments should
follow the late serious crisis. Pending
the resort of the clearing house to the
use of certificates, it was found that this
bank was in a feeble condition.; but it
of 70 70 - 70 lee
fate under the prevailing excitement.
The stronger banks now feel that there
is no longer the same necessity for them
to carry all impaired institution. and
hence this concern was left to self-sup-
port. which resulted in its
CO MING TO GRIEF.
In the higher banking circles, this
disaster has been for some time regarded
as impending, and the removal of the
consequent distrust will now have the
effect of Strengthening the general
banking situation. There is a halt in
the renewed export of gold. For the
moment, Germany, whittier all the
shipments have gone. appears to have
satisfied her wants, and there are no
symptoms of any important further i'm
mediate conSignments. At the same
time, it is an almost invariable rule for
gold 10 go out at this season ia settle
ment of annual balancings, and it
would not be surprising should some
further moderate amounts be sent. The
condition of the trade movement is not
suggestive Of continuous outflow. 1t
is true that our exports of produce are
light, but we have considerable surplus
stocks of grain, and, what is more I'M
portant, the importations of mer-
chandise are undergoing a very severe
contraction, and are likely to remain far
below the average volume until the new
tariff takes effect. 1t might be rather
fortunate than otherwise to part with
fifteen or twenty millions of our gold.
The effect at home would be to reduce
the unhealthy surplus of money, and
abroad to produce an ease in the money
markets calculated to develop demand
alike for our securities and our prod
ucts. The tariff question continues to
keep business in
AN UNSETTLED CONDITION.
and may be expected to do so until the
new duties are finally fixed. Conse-
quently, the best that can be anticipated
for the next few weeks is hand-to-
mouth business. Discouraging as this
prospect may seem, 1t is not without
some alleviations. A market of ex-
hausted stocks has always certain adj
vantages over glutted one. Makers
and holders of merchandise, in such
conditions, have it in their power to
support prices and to make profits,
though 1t be upon largely reduced sales.
Nor is 1t to be overlooked that the tariff
prospects and the depression of business
are combining to exclude competition
from foreign goods, and hence the large
falling OFF in the current imports. There
can be no doubt that, in most branches
of trade, the production still continues
much behind the consumption. This
foreShadows an ultimate exhaustion of
Jobbers' and retailers stocks to point
that will leave large vacuum to be
filled, in the filling of which manu-
facturerS should be in a position to OBJ
tain fair prices. 1t Is therefore to be
expected that so soon as the new duties
are settled there will be a considerable
revival of industrial activity. That re-
starting of production will give more
general employment to labor, and the
working million will gradually resume
Its wonted position as an element of de-
| mand, and the country will step by step
regain its wonted prosperity. During
the intervening period of inactivity
business can only remain severely con-
tracted; but the country will feel that it
can afford to wait, provided there is
hopeful prospect beyond.
u ~