The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-11-09
CONDITIONS MUCH IMPROVED.
GENERAL STOCK MAR
KET.
THE FUTURE LOOKS VERY BRIGHT
Confidence Is Shown I'm n Prospect
CT Renewal of business
Activity.

An his weekly review Of the financial
situation says;
The people have at last delivered
their verdict on the issues that have 80
long held them in alarm and paralyzed
oil their activities, The national vote
Is what all men of conservative judg-
ment had devoutly hoped for. 1t is
against free coinage and all the mis-
chief 1t has implied. and in favor of the
strict maintenance of the constitutional
safeguards of public liberty and the
permanent integrity of the union of
states. AS ouch. II Is a boon beyond
all estimation valuable and assuring
1t means that. through all the con-
fusion and sophistries attending the
free discussion Of a most perplexing
question, our people have found no diff
ticulty la distinguishing between peril
and safety. The European press being
our Judges, we have satisfied the world
Of our financial integrity; Of our abil
ity to maintain the supremacy of a
sound public judgment upon questions
OF great economic difficulty; of our SUI
periority to temptations to dishonor
towards our creditors; of our ability to
hold in check popular discontents and
demagogic attempts to impair the con-
sentative elements Of our national in
stitutions; and Of our resolute in
siStence upon future abstinence from
further commitments to the use Of
silver money. AS a consequence of all
this, the European estimate Of our ma
tional stability and conservatism has
been UNNECESSARILY advanced. Europe
has been but little less anxious about
the results of the election than our
selves; for it has felt, not only that a
vast amount of investments was at
stake, but that the rest of the world
had a multitude Of other vital reasons
for hoping that this test of our political
institutions might reveal no faults cal
culated to weaken their hopes for the
continued success Of our magnificent
exhibition Of the workings of free gov
eminent. The construction put upon
the election at the worlds chief finan-
cial center was shown in an interest
little short of that which greeted the
returns in this city, and in a spon-
taneous rise in the prices of our Sc
curities even exceeding that which oc-
CURED on our own exchange. All this
is exceedingly gratifying, not only be-
cause it amounts to the highest pos
sible national vindication by foreign
and not always friendly critics, but
because it foreshadows a higher status
for American credit among the invest
ing nations of the older continent.
Wall street received this verdict for
sound money and law and order with
wild rejoicings. No second opinion was
entertained as to its significance to the
future value of investments, and the
immediate effect was a large advance
in all kinds of securities. The upward
movement in prices, however, had been
in part anticipated by previous adj
vances; and certain large operators, who
are supposed to have had urgent use
for their money in other directions,
took the opportunity to realize largely
when prices had risen 2 to 4 points.
This naturally checked the upward
force of values and produced partial
reaction in the midst Of the excitement;
but there were ready buyers for all
the stock offered. The new situation
attracted into the market a large num-
Der of buyers. Cautious people, who
have been keeping their funds idle in
the banks or had for safety's sake
turned them into gold bought largely
of bonds and interest-paying stocks,
and a large amount of securities was
thus taken permanently off the mar
ket. Speculative operators who have
been conspicuous for their long alb
sence from Wall street showed their
appreciation Of the situation; and be-
tween the two classes of buyers the
transactions of Wednesday reached the
unusual total of $50, 600 shares, while
the transactions in bonds were CORE
spondingly large. London was a larger
buyer than for many months past.
Some of the bears however. could
their pessimism; and when, on Thurs
day, some doubt was thrown upon the
vote of certain states which party esti-
mates had given to Mr. Mckinley, there
was some demOnStrative selling, with
the effect of a slight reaction in prices.
Thursday and Friday were occupied
with floating rumoTs relating to the
vote of five or six states, the count of
which remained uncertain, and some
fears were entertained that there might
be an attempt by the Bryanites to
fix" the Indiana returns for their can
didate. Also, in the uncertain states,
the run is apparently so close as to sug-
gest the possibility Of an official
count having to be made. These facts,
while suggesting no possibility of Mr..
Bryan'S success, yet threw an element
of uncertainty over the magnitude of
Mr.. McKinley's majority, which held
speculation in restraint and afforded
ample scope for the effective use of
election canardS. The Importance Of
these uncertainties lies in the fact that
the effect of Mr.. McKinley's election
upon the spirit of business and Of spec
ulation will depend to some extent
upon the numerical strength of his ma
jority. Such oscillations usually arise
even under the most extraordinary
bull excitements; and the effects of
the. new situation now introduced are
not to be expected to appear all at
once, but will be largely realized
through a more extended process, at
tended with the ups and downs always
incident to speculation. Moreover, in
estimating the future course Of the
market, it is to be kept in mind that
even this great victory may not be
expected to Immediately eradicate the
habit of timidity which has become 50
deeply ingrained in the public mind
during the last three years of uncer-
tainty, danger and acute apprehension.
To eradicate that, by any single event
or within the space OF one short week,
would need a miracle.
Among the minor incidents resulting
from the sound money victory is the
complete recovery of confidence among
the banks, and their sanguine expecta-
items Of a great revival of business.
This feeling has shown itself in an ac-
tual demand for commercial paper at
while time loans on collateral are Of
fered freely at moderate rates. This
fact expresses the estimate of the bank
ing community upon the safety of the
situation introduced by the election: it
is also good evidence that, henceforth. .
sound borrowers may depend upon get
ting all the money they need. Another
effect is apparent in the disappearance
OF the premium on gold. Those who
have boarded the metal to the extent
OF many millions within the last three
months are now showing their anxiety
to get rid Of it by taking it to the
treasury and the banks for exchange
for paper currency. This lately much
coveted gold has, therefore, now be-
come drug upon the market At the
same time, the election has caused a.
drop in foreign exchange to a point
about admitting of imports of gold.
But. now that the boarding demand for
the metal has ceased, and that it is
coming Of hna in