St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-08-20
SHOULDERS TO THE Wheel.
With Hope and Cheerfulness
Is the, Advice Of Broker
Henry Clews.
IMPROVEMENT is CERTAIN,
He recommends the Buying
OF Railway Stocks for
Higher Prices.

NEW DIRK, Aug. 19.-The market has
at last been freed from the cloud of
uncertainty, doubt and fear which has
been Its great drawback for many
months. The Washington domination
mas. practically ceased, and railroad
properties are once more in position to
be Influenced by the returns from
gradually increasing traffic, which is
Dound to follow the settlement of the
tariff question. The depreciation in
values and stagnation in business has
been matter of more than a year. and
IL may take as long as that to bring the
country back to its previous condition
OF prosperity; but the recovery is GER
talnly coming and has already started.
Inc work of year cannot be un-
done Ill a week or month, and from
time to time there will undoubtedly be
faiterlngs and setbacks; but with it all
the foundation of business will grad
ualiy assume broader proportions, until
the restoration of confidence in all lines
and all quarters is complete. Wall
street Is unQuestlonably the pulse of
the country, and, as a patients pulse
indicates his condition, so will the
security market here reflect the con-
valescing condition in manufacturing
and commercial circles which will
prevail throughout the country from
now on. Europe has already perceived
the Frightening financial skies here,
and has been quick to recognize the
adVlsablllty of accumulating American
railroad properties while it can be done
at low figures. Each day brings
Fresh Buying Orders
from abroad, and foreigners are getting
as anxious to hold our securities now as
they were to let them go while back.
Added to this, the absorption of bonds
and stocks. which are now looked upon
as unreasonably low, continues, that is.
they are being bought aud taken out of
the market entirely. The long-continued
"bear' markets have shaken out weak
holders, and securities in general are
getting into strong hands. That the
railroads of the United States are IN a
better position to recuperate rapidly
tnan they were year ago there can he
no doubt. The long period of depression
has necessltated the cutting down of
expenses wherever and whenever it was
possible. 1t has taught railroad man
ayers how to economiZe and forced
them to do business on cheaper basis
than ever before; SO that increases IN
traffic are likely to show much larger
net returns, owing to the low basis of
operating expenses. For a while also
there is not likely 10 be many new eX-
tensions to old roads projected, as at
present there is little incentive for any,
thing OF the kind, and there will not be
until the business of the United States
gets back to its old magnitude.
The Cora Crop
has been less an element of fear in con-
necton with the granger roads this
week. There has been considerable
rain in the corn belt. and though the
government crop report issued on the
10th indicates a deterioration in condi-
tion sufficient to reduce the general
yield to something under 100000 900
bushels, the impression prevails that
the worst of the damage is now known,
and that there is no further reason for
bearing" the stocks of the corn-carrv-
ing roads. The way should now be
clear for new departure based upon a
rock foundation; condition which
could only have been accomplished by
rigid economy and thorough liquidation.
The attitude for everybody to take now
is on the buildlng-up side. which
carries with 1t cheerfuIness, hopeful
ness and profit to all who put their
shoulders to the wheel and take hold
with vim. We cannot do better than
point out the wisdom of our advice of
ten days ago to the effect that the stock
market would be governed by what is
ahead, and not by what has passed; that
the old condition of Stagnation and de-
preston is rapidly being lost sight OF,
and that everyone is looking forward to
what may be expected to prevail six
months from now and thereafter. By
that time railroad earnings will have
returned to a normal condition, which
means more than it did under the old
situation owing to the pruning process
which the roads have all undergone.
The thing to DO is to discount general
improvement in the future; and we
still recommend buying stocks for
higher prices. The reactions which
will occur occasionally will afford ex-
cellent opportunities for getting in at
good figures. HENRY CLEws.