St. Paul daily globe., 1895-09-16

1nlS advance Is to be taken as ex-
pressing the estimated improvement
In the value of stocks due to such re-
covery in the Industrial, commercial
ana hnac1al condition of the country
as has occurred in connection with the
synd1cate's regulation of the gold
movement. 1t is to be noted, however.
tnat, SO far, there has been, as a rule.
only nominal Improvement in the
earning capacity of the railroads.
This rise in the prices of stocks has
therefore been anticipatory of an in
crease in earnings which it is assumed
will be forthcoming when the i'm
proved conditions of trade and the for
warding of the new crops have more
fully worked out their results. IT is
proper to note that this is a double as
SUMPTION in which it is taken for grant
ed not only that the earnings Of the
roads VIII Improve, but also that there
VIII be no failure in the realization of
the conditions ON which the improve
ment Is predicted, namely, the early
complete remedy of the arrangements
which have caused the treasury gold
embarrassments. The fact that this
latter assumption has not vet been
finally placed beyond the possibility
or failure is the point on which the
bears rest their strength; and 1t is
ono to which minds pessimistically dis
posed will naturally attach some ma
terial Importance. Individually.
think there is a very strong prepon-
derance of probability that, within the
next few weeks, arrangements will be
completed by which the treasury diff
culties will be so adjusted as to re-
move all necessity for further issues
OF bonds and exempt the government
from all further serious drains upon
Its gold. To my view, there is nothing
In the situation to prevent an arrange
ment being reached, as between the
treasury, the banks and the syndicate,
by which exchanges of gold between
the banks and the sub-treasury would
re restored to the harmonious and
conservative relations existing before
1898; and there are apparent symp-
toms that an effort may be made in
that direction at no very distant day.
But nevertheless there are diversities
of opinion on the chances of such an
early settlement; few understand the
intricacies of the situa ton; some are
m1sled by impossible schemes; and
everybody is In the dark as to what
measure of relief may or may not be
provided All this means uncertainty
and suspense, which can only become
the more troublesome the longer 1t is
continued. 1t does. not appear either
reasonable or safe to boldly increase
holdings or stocks so long as there Is
! no relief from this unsettled state of
things; and we can only, for the mo-
ment, recommend to our friends a
careful and tentative attitude, hoping
for the best outcome, but not pre-
maturely acting on that hope
The more immediate factors occupy
ing the attention of operators are the
prospect of gold exports and the crops.
At the moment the shipments of
specie show some tendency to diInin-
ish; but 1t Is very difficult to judge how
far this drift may run. The unknown
short factor in exchange accumulat-
ed of late battles all calcula tons; and
all that can be said is that every mo-
tive seems to favor the syndicate soon
averting the present large exports of
gold; and yet, in the present compare
tive absence of wheat and cotton bills,
it seems possible they may find 1t nee
essary to permit some further amount
of gold to be shipped. In two more
weeks, the contract between the treas
ury and the bankers will end accord
ing to its terms; and that period is
awaited with much interest as pos
sibly introducing some new features
into the situation; which suggests a
motive for the exercise Of conservatism
On the buying side of the market.