St. Paul daily globe., 1895-11-18
EFFECT MAGICAL.
SALISBURY,S SPEECH CAUSED
RENEWED CONFIDENCE IN
THE BOURSES.
RECOVERY QUITE MARKED.
KAFFIRS NO LONGER A BUG
ABOO FOR LONDON SPECU-
LATORS.
RAILWAY EARNINGS INCREASE.
Gold Exports n Serious Bear
FactOr-Henry CIews' Re-
view.
Special to the Globe.

Special to the Globe.
NEW YORK, Nov. 17-In his week
ly report of the financial situation
Henry Clews says:
Upon the whole, the course of af-
fairs in Wall street has improved
during the past week. Partly, the
recovery has been due to the political
assurances afforded by Lord Sails
bury's Mansion house speech, which,
while leaving Turkish internal af-
fairs still in a desperate condition,
left no room for apprehension of
serious political differences as be-
tween the great powers. The effect
Of these utterances upon the Euro
pean bourses was prompt restora-
ton of confidence, which has been
especially apparent in American Sc
curities.
Another factor contributing to the
recovery has been the comparative
absence of further serious embar-
easements in connection with the
wild speculation in "Kaff1rs." 1t
seems probable that now those stocks
have come under the control of the
leaders, who have no doubt gathered
immense wealth from their opera
tions, and in that case further dis
aster may probably be confined to a
few minor operators whose ill-fort-
unes could not be of much impor-
tance to the general market for Sc
curities.
In addition to these Improvements
in European conditions, the railroad
situation has shown a more hopeful
prospect In spite of the light move
ment of grain and cotton to the sea-
board, the railroads begin to ex-
hibit a decided improvement in earn
ings. When cotton and wheat come
to be exported in the volume usual
at this season of the year, their
traffic will be largely increased, and
earnings will show a further gain
upon their already liberal volume.
The Southwestern lines have been
suffering from an expected light crop
of cotton and from it's being with
held from market; now, however,
opinion begins to favor somewhat
larger yield than has been expected
and the price has fallen to a point
much nearer the views of foreign
takers; so that it is reasonable to
look for an early liberal export of
the staple, with a consequent gain in
the business of the roads of that sec
ton. The corn crop also is now but
beginning to move. The agricult-
ural bureau now estimates the yield
at 2,14S, 900, 900 bushels, or 936,000,OO
bushels above that of last year. 1t
is impossible that such an increase
in one of our bulkiest products can
fail to largely increase the income OF
the roads situated in the corn belt.
These improved conditions have
arisen concurrently with a largely
oversold condition Of the stock mar
| ket, and the result has been a rush
to cover short sales, which has caused
| a general rise in the railroad list
So far, however, the improved turn
in affairs has had little effect upon
| the outside element in speculation
| The transactions have been chiefly
confined to board operators, and out
| siders seem disposed to wait until
| the recovering tendency becomes
more marked and positive.
But while the factors above cited are
| tending to restore confidence and have
! caused an advance in prices, the up
ward tendency is held in check by the
revival of gold exports. 1t is a suf'
| ficient explanation Of this eXtraordi'
nary exception to the common rule OF
| importing gold ait this season that i
results ON the one hand from heav!
importations of merchandise, and or
| the other from the persistent holding
back of the staple articles of export
| 1t is to be conceded that the detention
| of produce from export is sure to bt
followed by shipments so large as pos
sibly to turn the flow Of gold toward:
this country The latter fact may ia
vor a replenishment of the stock o.
| gold in the metropolitan banks; but i
can bring no direct advantage to the
| treasury, as the government has NJ
longer any source of gold income and
can get the metal in no other way thai
by borrowing it against issues of bonds
| The present state of the foreign eX
changes therefore brings public atten
ton back to the stubborn bear factoa
| arising from the condition of the treas
l1ry gold reserve. The specter of an
other fifty millions bond issue rise
before the public immagination, ant
there is nowhere much doubt abou
that ogre materializing sometime be
fore next spring. That constant dis
turbing possibility stands as a fixeC
obstacle to any really inspiring re
coyery of confidence. Could it be re
| moved, the effect would be worth tel
points added value to the entire stool
list. But so long as this remains al
open and constantly recurring danger
it seems hopeless to look for any reall.
strong and we'll sustained effort t
bring up the price of investments t
the standard established by the i'm
provement In their intrinsic condition
Any general and sustained rise il
prices needs the cooperation of mel
of ample means and cautious Judg
ment; and such men are very apt t
decline large and long commitment
when the prospect is not reasonabl.
clear of clouds.
While, therefore, the general indus
trial and commercial conditions ar
favorable to the value of stocks an
are likely to afford a good substratun
of confidence to the market, 1t will b
prudent to avoid expecting too muc
from these encouragementS. The prop