The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-10-19
OPERATORS ARE CAUTIOUS,
BUT CONFIDENCE IN THE RESULT
OF THE ELECTION is SHOWN
IN SPURTS.
DEMAND FOR FOOD PRODUCTS.
1t Already Exceeds the Carrying
Capacity From Now Till Next
March.

L
review of the financial situation,
Henry Clews says:
Since our advices of last week, we
have had another upward squirt in
the market for securities, with an ad-
vance of to points. Partly, it has
been the result of the active revival of
gold imports. The amount now on the
Atlantic, though not exactly known, is
estimated to be at least eight millions,
and amCng foreign bankers it is ex-
pected that next week arrang ementS
will be made for the shipment of
eight millions more; which would make
the total sum received and to be re-
ceived, from the time the movement
set in, about seventy millions. At
what figure the movement may end it
is not easy to estimate; opinion in
clines to the probability of eighty mill
ions, and some entertain more san
guine expectations. So far, there is no
sign of any abatement in the supply
of export bills. The September ex-
ports of merchandise from all ports.
including silver and it's ores, show an
increase over last year Of $32, 400, 600;
while the imports are less by $14, $780,
600; which makes the trade balance for
last month SAG, 900 900 more in our IA
vor than it was year ago; and. in
Guiding the silver movement, gives an
excess of exports over imports amount
Lowing a similar condition of the trade
balance during the two preceding
months, sufficiently explain the large
influx of the yellow metal.
Much surprise was felt at the Bank
of England not advancing it's rates
of discount to 31a or per cent, as had
been confidently expected both here
and in London; the more so as the
bank lost Il, 100000 of its gold during
the week, and is presumably aware
that $10,000000 more gold is likely to
be sent hither next week. 1t seems as
though the managers were willing to
let the pressure of the specie drain
have it's full effect, in order to produce
an impression on the London market
that may tend to check the gold out
flow and force relief through lower
prices for securities. It is remark
able, however that so far no relief has
come to the London pressure through
the return of our securities. From the
beginning of the large drain London
has been quite as much a buyer of
our stocks as a. seller. 1t has re-
sponded closely to. the successive re
coveTies in prices on this market, and,
like our own people, seems to have
confidence in the outcome of the cleo
ton and in the choice of Mr.. Mckinley
introducing an era of higher prices.
This confidence is natural enough
when it is considered that the amount
OF American stock floating on the
London market is now exceptionally
low. and that a great rise in our in
VeStmentS is expected to follow the
overthrow of the silver agitation.
The local market for securities still
retains it's great Aaution in refraining
fr1Sn sanguine operations in anticipa-
ton of the November election. Conf
dence grows daily in the overthrow of
silverism, and this conviction has
SSurts of l, 2 or points; but so COM
pletely has the experience Of many
months of disappointment and depres-
sion cooled the ardor of the Specula-
tive element and intensified the caution
of investors that the outburSts of hope
soon moderate, and the general feeling
still is to hold back action for the ac-
complished result. Whilst, therefore,
there may be further improvements
between now and the day of election,
the main inspiration and effect of the
expected deliverance is likely to be de-
ferred until after the election reioic-
fngs arrive.
In the meantime, the course of our
foreign trade relations is in the highest
degree encouraging. Sterling exchange
is at $4.S2 for siXty-day bills, and the
Bank of England apparently deems it
hopeless to check the consequent out
flow Of gold to this country by advanc-
ing its rates of interest. Export orders
for our food products are greater than
we can provide freight room for from
now UP to next March, The estimated
deficiency Of 100,000000 bushels in the
worlds wheat crop will have to be sup
piled largely from this country, and the
consequent rapid advance in the price
OF wheat is causing an extraordinary
demand for our Indian corn-a demand
which is likely to be hereafter contin-
ued when it has thus been extensively
used by European consumers Europe
is saying to us: 1--WE will take all the
food you can send u.s., but while your
money basis is in doubt, we don't want
anything you print We are expecting
to give to our foreign critics assurances
on this point which, within twenty
days, will compel their congratulations
as We'll as command their confidence.
so that they will not only buy our food
staples but invest in our enterprises.
This showing does not furnish much
ground for alarm. All that is row
wanted is a sound money election to
put this country again on a phenom-
enally prosperous basis, as was the
case in the years 1880 through the
resumption Of specie payments. I do
not hesitate to predict that that same
notch will be passed in the year 1897
IL the st. Louis conventions platform
Is adopted overwhelmingly by the
votes of the people on Nov 3. On the
sother hand, if the Chicago platform
should be adopted then these ele-
ments of prosperity will prove to be
absolutely reversed, and we must wade
through period of four years with
such uncertainties as will dishearten
employers and employees alike; and if
such a misfortune should overtake the
country, instead of the prosperity in
dlcated, from which the labor classes
would derive the most benefit. the
conditions of trade would become so
deplorable from one end of this nation
to the other that the largest export
that this country would have would be
that of wage earners; as it would not
be possible to find work for all on this
side Of the Atlantic
The stock market shows less activ-
lty than might be expected from the
impending possibilities of higher prices
following the election The reasons for
this do not need much explanation.
In the hrst place, owing to the past
severe depression of business and the
condition Of the money market, there
are few outsiders who have the means
for buying on speculation In the
next place. the hard and perilous
times have crushed the speculative
spirit and made men unusually con-
serVallVe and tlmid. Again. many of
those who have both the courage and
the means to seek fortune under the
present extraordinary conditions have
already laid up all the stock 1t is at
present convenient or prudent to carry.
and are content to wait with their
present load until after the election.
Again. there is in Wall street. as else
where. a singular uniformity of feel
ing to defer operations until after the
Sd of November. And. perhaps as inn
portant as all these causes put to-
gcther. the terms for time loans on
stock collateral are almost prohibftory.