St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-06-10
AMONG THE BULLS AND BEARS.
What is Going on al the neaa-
quarters of American Finance.
An Intelligent View Of the Situation
by an Outsider, Forms of Invcst-
ment, Difference. Between In
comes and specuIatiOns.

ment, Difference Between In.
comes and speculations.
To the mind OF the outside barbarian, Wa Il
street presents many aspects. Being the ac-
knowledGed financial center of this CONT
nent, the enormous moneyed interests rep
resented there in, the shape of the shares and
bonds of legions Of corporations, besides the
issues of the governments, states, and NUM-
cipalities of the New World, aggregate
hundreds of millions of dollars. To the in
weston for income, the stability of dividend
paying shares and gilt-edged bonds is con-
slant study. The vast army Of Spectators
who disdain ordinary modes of money-mak-
ing and ''play' the market as they would the
races or the faro table, view Wall street as the
most fascinating gambling arena on the face
of the earth.
These two classes of clients constitute
what is known in the vernacular of the street
as 'the generous public" 'tthe outsiders"
"the lambs and '.the victims
Their operations are conducted through
bankers and brokers who are members of
the New York Stock Exchange and the Con-
soidated Exchange. It is of the exploits Of
these sharp, shrewd agents that we write
when we chronicle the variations in the
market.
Elegant Offices, polite and tactful clerks,
the latest news of crop prospects and move
ments, railway statements, important politi-
cal events at home and abroad, and all occur
rences bearing on the situation of affairs, are
the machinery that gives the motive to the
vast army OF customers which frequents
Wall street and it's vicinity.
The prominent feature of the market for
the two weeks past has been the investment
demand for bonds on the part of individuals
and institutions. The abnormal ease of
money, induced by the existing depression
in general business. and causing accumula-
ton of millions of idle capital in the vaults of
banks, has fostered for several months past
strong demand for mortgage and corpora
ton bonds.
This movement here has been rendered
more pronounced by the great plethora of
funds in Europe where the. ordinary chan
nels of business have stagnated and, as with
ours, been strewn with financial wrecks.
The supply OF frst-class bonds has been
exhausted some time since, except as new is
sues are placed on the market and are
readily absorbed. The inquiry for securities
has taken wider scope in the character of
issues, and bonds by no means gilt-edged are
now the objects of speculation as well as in
vestment. The new Government fives have
been re-sold at an advance, and, as the CON
tinued export of gold has materially reduced
the Treasury reserve of the precious metal, it
is expected that Mr.. Carlisle will be forced to
market perhaps fifty millions more of the
fves in tie near future. This issue would
readily be absorbed by the savings banks,
whose vaults fairly groan with supsrabund-
ant deposits. We doubt not but that any
issue of Government bonds could be market
ed on 2 1-2 per cent. basis on account of ex-
listing low rates of interest.
The last French lean floated by the city of
Paris was over-subscribed ninety-seven
times at 2 IL per cent. This incident tells
the story of the money market abroad.
Municipal bonds have been in active
demand, and prices have now reached the
highest point, especially for the issues of
Eastern towns and cities. Southern securi-
ties advance in popularity because of the
fact that business has been better in the land
of cotton than among the farmers of the
great West. The land boom in the South
eliminated four years ago in a sudden col
lapse, and folks in Dixie, deprived of their
paper profits, came down to sthard PAM and
have been forced to retrench personal as well
as municipal expenses.
Railroad mortgage bonds are considered
too high by conservative investors and oper-
ators. Labor troubles in the coal regions,
unfavorable traffic returns, and the move
ment of tramp armies throughout the coun-
try, are arguments used by prudent folks.
The enforced economies of railroad corpora
tons will, it is fairly argued, force an in
crease in construction and equipment ac-
counts as soon as matters shall have returned
to normal conditions.
Investors and operators in bonds are to be
found in the elegant Offices of such leading
firms as Harvey Fisk & Sons, Drexel, Morgan
& Co., Vernilye & Co., Seligman g. Co., and
hundreds of others who are held in high es-
TEEN by the discriminating public.
The story of the stock market is quite the
reverse of the bond market at the present
writing. Outside interest is almost suspend
ed; the limited movement noted daily is
mainly the result of professional manipula-
have to force variations of an eighth or quar-
ter per cent. or starve. Those who manipu-
late the 'Industrials" (as trusts are styled
nowadays in order to eyade State laws against
combinations) have caused vast and rapid
variations in prices through congressional
action and inaction.
Henry Clews, the banker, was in his Office
when called to get his views on the situa-
ton of the stock market. Mr.. Clews is al
ways smiling and inclined to look on the
bright side of things. Active and alive to
the bearing of news on markets, he is ever
ready to give an opinion on the future OF
values. His clients, ensconced in luxurious
armchairs in the handsome main office, are
frequently guided by his views, but they do
not consider Wall street prophet infallible.
Since our remarkable Congress has wasted
two months of the special session in the dis
cussion of the Sherman Silver bill, and almost
six months of the regular session in prelim-
mary sparring over the tariff, the varying
phases of the latter interminable subject
sway the minds of men on Wall street. Mr..
Clews has daily new bulletin on the tariff
question or discussion posted in a conspicu-
Gus place for the benefit of his customers,
and being in facetious mood, he handed me
his latest bulletin in liew Of an interview. It
reads thus:
'The Tariff bill as now liberalized by its
four hundred and more changes, is Invested