St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-08-05
NOT ALL SO ROSY.
MARKED BUOYANCY IN THE
MARKET TEMPERED WITH
DISTRUST.
HENRY CLEWS PESSIMISTIC
REGARDING THE IMMEDIATE
FUTURE OF AMERICAN
STOCKS.
ACTION OF THE SYNDICATE
In Maintaining the Gold Reserve
CIoseI= Watched-Big Crop
Prospects.
Special to the Globe.

Special to the Globe. ~
NEW YORK, Aug. AIN his weekly
review Of the financial situation Henry
Clews says:
In the speculative arena, the contest
between the higher and lower sides still
wages fiercely, with varying results.
The bears" mainly concentrate their
forces on the induStrials as being both
intrinSically and Strategically the
weakest. The bulls direct their sup
port, with much firmness, to the rail-
roads, and especially the grangers.
With ups and downs in both groups of
stocks, however, prices do not on the
whole vary materially. One of the
main dependencies of the bulls is in
the expectation of some settlement of
Reading affairs that will place compe-
tition among the coal roads under more
conservative control: another of their
hopes is that the trunk lines may per-
feet some scheme to prevent future
cutting of rates; and yet another that
a phenomenally large corn crop may
greatly add to the traffic of the roads
running through the corn belt.
The bears base their position on
the contention that on stocks at large,
prices have already risen to their full
intrinsic value, and that it is most con-
ducive to an active and trustworthy
movement that prices should be allow
ed to decline several points at least.
Moreover, they insist that the uncer-
tainty attending the position of the
treasury, especially in the event of the
syndicate withdrawing its protection,
this is a matter that naturally pro-
duces some hesitation in the larger
movements of capital. And it is not to
be denied that not only do London adj
vices report the beginnings of a feel
ing of that sort, but that the English
market is showing more disposition to
sell than TO buy speculative properties.
This may easily prove to be more
DISTURBING MATTER
than we, in the midst Of so much
buoyancy of feeling, are at present pre-
pared to admit. London appreciates
at it's full Importance the fact that, at
present, we have no real certainty
that, within few months, we may
not find the treasury reserve subject
to a new drain; and it would be very
much contrary to the usual precaution
of that market if it did not discount
the worst side of that possibility. I'm
der existing circumstances, the specu-
lative transatlantic element has it in
it's power to force down the prices of
our securities held there. BY selling at
New York, they might find it possible
to precipitate the very export drain on
the gold reserve the possibility of
which they now foresee; aiming to
thereby be enabled to buy in again at
subsequent lower prices. This is a
speculative opportunity too tempting
for US to assume that the Shrewd op-
orators of London will surely allow it
to pass unimproved.
There are those who assume that the
recent large negotiations of our Sc
curities in Europe will be continued to
such an extent as to bring gold to this
country, overlooking the fact that,
even should such prove to be the fact
there will be no way by which the in
coming specie can get into the treas
ury when the syndicate has closed it's
operations. 1t may be safely taken for
granted that London and Germany
will be distrustful toward us until
some real and permanent protection of
the
TREASURY RESERVE
is provided; and that fact is standing
menace to exports of gold from this
country. There is no evading the force
of this fact and it is very unwise
their eyes against it. The true policy
of conservative Wall street, at the
present moment, is not to passively
hope for the best when the worst Ss
possible, but to unite its whole infiu-
ence in order to establish conditions
which, without the help of syndicates
or any other artificial and transient
contrivances, will permanently shield
the treasury against all possibility of
losing it's gold. That is the imperative
need of the hour.
These are factors, however, which
are not exerting much force at pres
ent. Just now the market is in con-
troll of strong hands, who see in the
excellent business outlook and the
prospect of a big corn crop, the best
of arguments for lifting the market
to a higher level. The stubbornness
with which stocks are held is much in
favor of such manipulation. When
stocks refuse to decline, as they did
with remarkable resistance in July,
the trading element, who are chiefly
interested in activity, are apt to try
their success in putting them up still
higher. There are not a few large
operators who would like to see the
market have an additional advance,
so that better reasons for a reaction
could be found than at present Offer
August is frequently a. month of rising
prices; and while the more distant
future demands caution, it would give
US no surprise if those now in control
of the market succeeded in obtaining
better prices before general realizing
sets in.