The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-10-05
THE RESULT OF THE ELEC-
srION.
ACTIVITY ALREADY BEGINS,
TROUGH THERE ARE SOME TEM-
PORARY BEARIsH FEAT
URES NOTED.
THE TREASURY RESERVE GROWS.
Greater Than at ANY Time since
1s01-Henry Clews' Weekly
Review.

Review.
Special to the Globe,
NEW YORK, Oct. Am his weekly
review of the financial situation
Henry Clews says:
In our last advices we intinated that the
Dear, element in Wall street was losing
ts noid upon the market, and that prices
were drifting towards rise which could no
longer be held waiting for the result of the
November election: The forecast has already
been confirmed Throughout the weak there
mas been steady and free buying move
ment, with a considerable rise in quotations;
ana although some liberal sales have been
the stock readily, with only transient yield
ing In prices. The frmness has been fol-
lowed by London, where prices have risen
and without any selling on New York either
on snort account or to realize. This, however,
may not mean much, as London holdings
OF Americans appear to be at present ex-
ceptionally light
This upward turn is the more assuring be-
cause 1t has successfully overcome soma new
obstacles. The rates Of foreign exchange
have advanced to point at which 1t no
longer pays to bring gold this way; and con-
sequently there is cessation of engagements
for importing the yellow metal. 1t is true
that this is only temporary interruption in
the movement. due to the liquidation Of the
borrowings abroad of some ten millions about
two months ago, which absorbs the supply
Of bills for few days; but all do not under
stand this explanation and, for the moment,
the market loses the exhilarating effect of a
continuous influx of gold money upon our
market. Also. another visit of the "Platte Ora
tor" to this locality has revived the timidity
of the needlessly alarmed, though the SEN
sation was brief and encouragingly void of
effect on sound money enthusiasm. yet
more serious element has been the cutting Of
rail rates on the routes extending from the
lob 10 fha GI1If p0rtc &c OF oF
real consequence to the roads serving the
corn belt, which are threatened with the d.
version Of an important amount of traffic
from the Atlantic ports. Two extraordinary
corn crops, attended with low prices, have
largely increased the European demand for
that grain: and 1t is therefore natural
enough that an effort should be made to Sc
cure this traffic for the routes connecting
with the Southern ports. 1t Is an illustration
of the changes that are continually turning
up to tempt the roads into concessions on
rates. and in this case the roads can hardly
be blamed for the spirited way in which
they are facing a new source Of competition.
Outside the cutting" in this particular sec
ton, however. the companies are living well
up to their agreements, and the Granger
lines have little to complain of.
These drawbacks however, are but tempo
rary influences. The settlement for the ten
millions of sterling advances is approaching
completion; and when that source of de-
mand for exchange has been satisfied, we
may expect a return to the surplus bills
the mercantile demand WHICH HAS leu
to the imports Of gold; for the excess of ex-
ports over Imports still continues with no
visible abatement; although, at the moment,
berth room is so scarce as to hold back ex-
ports for which engagements nave Deen
made-a fact which points to prolonged
favorable balance Of trade. So far as re-
spects the political situation, the prospect
becomes more and more certain OF the deIeat
possibilities that the adverse majority Will
be so overwhelmingly large as to place that
issue beyond a possibility of resurrection.
And as to the diversion OF corn exports 10
the Gulf ports, while it may cause some loss
on freights to certain railroads 1t will help
others and also will facilitate the foreign
marketing Of our chief agricultural crop,
the exports Of which are likely to be- UNI
usually large.
Great expectations are placed upon the
national sense Of relief that Will attend the
expected triumph of q sound money policy
on the Sd of November. The habit of
excessive caution into which people have been
educated by the last three years OF apprehen-
sion has however, the effect of preventing
anticipation from taking too much for grant
ed The credit granting power holds every
thing in it's control and 1t is the habit Of
bankers to act upon ACCOMPLISHED rscts
rather than hopes. no matter how
we'll grunded. Industrial and mercan-
tile interests therefore are walt
ing for the great relief relier, rather a,1eT
It, In all branches of trade, the feeling Is
becoming more confident; and when a great
anti-silyer vote is announced there Will not
be much waiting for an active resumption OF
business
simultaneously with that recovery Of con-
1dence there will be other conditions calcu-
lated to foster regeneration. Inc treasury
will show a large reinforcement Of its gold
reserve The net gold now held by the
government or assured to it, amounts TO
about 100 millions; and 1t seems safe
estimate to suppose that by the end OF this
month it may easily amount to las millions;
which would be the largest reserve held
since March 1891. The significance Of this
fact would lie not only IN It's strengtnenin a
promoting the value of our investments
abroad, but also in placing 1t in the power
of the government to restore arrangements
under which the treasury would be perma-
nently protected against the drains which
have necessitated the large bond issues OF
the last two years. Clearly, we are drifting
into conditions of recuperation which will
make 1t much easeier to place the govern
ment credit and its note issues in safer po-
sition than has been possible since the crisis
Of 1893
beginning of November, the currency move
ment will assume direction calculated to
bring a period of marked ease In the money
market. Even during the present month,
money is likely to accumulate In the banks.
The flow of currency to the interior has
reached its elimination for this season and
is likely to steadily decline from this time
forward while the bank reserves may be ex-
pected to be fed by further imports Of gold.
Ordinarily, the money sent to the interior in
August and September begins to flow back
In November. The amount sent out, since
the beginning of August, by the New York
banks have so far amounted to about $40 O00,-
600; and that will be available for swelling
the reserves during the last two months Of
the year, barring the shipments which have
yet to be sent to the South, which have al
ready been to some extent anticipated by
amounts sent to the relief Of the embar-
raised banks of New Orleans.
Thus assuming that the national verdict
will rid us of the silver danger, the future
has little to suggest misgivings and much to
encourage sanguine hopes. We do not coun-
SCI lncurr1ng rarge engagHsnts n prospect
advise our friends to stand prepared for the
great opportunities that will be presented
when the nation justif1es its honor and good
judgment by declaring for a sound money