The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-17
MOVE ON THE PART of CAPITAL
lists THAT INDICATES I'M
PROvEMENT.
REACTION IN PROGRESS.
ZATION HAS REACHED ITS
WORST.
FOREIGN DEMAND IS BETTER.
Altogether a Much Better Tone I'm
the Financial Market, Says
Henry Clews

NEW YORK, Aug. 15.-In his weekly
review of the financial situation in Wall
street, Henry Clews says:
During the past week financial affairs have
developed important symptoms of improve
ment. There has been a distinct abatement
OF the extreme unrest and distrust which
nave so completely controlled the markets
LOT many weeks past. AS indicated in our
adyices of last week, calm observers have
reached the conclusion that selling and the
fall In prices have gone quite far. If not
the situation warrant. Men of steady judg-
ment reason that the Decentralization has
arisen from fear of certain dangers estimat-
ed at their worst possible consequences, and
from rating adverse possibilities as adverse
certainties. The counter possibilities have
not been taken into consideration at all, or
else below their true value. The chances
for the outcome being better than the appre-
tensions have been almost entirely omitted
In the estimates of the situation and values
have been largely adjusted to the worst
conceivable prospect
This may have been a natural course of
Keeling under such suddenly alarming condi-
tons as have lately appeared, for there is
nothing about which men are so apt to rush
Into rash precaution their investments.
But however natural this process of realiz-
ing may have been, 1t has certainly been
lengths. 1t was only a question of time
when holders of securities would begin to
set off the hopeful chances against the dis
couraging possibilities and strike a fairly
rational balance between the good and the
bad in the situation. Evidently that stage
in the decentralization has now been reached
Strong men, Of sound judgment and large
means, have come to the conclusion that
prices have reached a level at which secur-
tiles are safe investment. Large holders
who foresaw severe fall in prices and sold
largely OF their holdings, are now satisfied
that stocks have gone far below their in
trinsic value. and are now in the market
as buyers of the stocks with which they
had parted at higher figures. And besides
these, persons who have been long holding
funds idle in bank are now converting them
into stocks and bonds under the inducement
of bargain prices.
All this looks like bona 1de recovery of
confidence. 1t implies that judgment has re-
covered control of fear. 1t means that the
class who control the national capital have
finance and politics, and have come to the
conclusion that there is nothing in either or
in both combined, to warrant reduction of
One-third in the market value of our invest
ments. The foreign exchanges have assumed
an easier tone. The supply of bills ex-
care OF itself without help from the exchange
syndicate. The foreign markets are showing
more disposition to take our stocks London
especially having been free buyer. The
conviction that the corner in the situation
has been turned. Is bringing institutions and
capitalists into the market who have bought
large quantities of stocks, and taken them
out Of the market, thereby putting business
on a sound footing again. While weak holders
have been driven out, strong ones have taken
their places, which materially strengthens the
situation on the exchange. One very remark
able feature of the late trying experience has
been the exhibition of financial strength
equaled in any previous general financial
disturbance.