St. Paul daily globe., 1896-03-16
HAS A BEAR EFFECT ON THE
MARKET.
BUSINESS CONDITIONS DULL,
WHICH FACT ENCOURAGES THE
HESITATION OF THE MORE
PESSIMISTIC TRADERS.
ALL DIFFERENT IN THE WEST
Activity Reported From Chicago
and Other POints-Increase in
Railway Earnings.

NEW YORK, March 15.-In his
weekly review of the financial situa-
ton Henry Clews says:
In Wall street there is little change in the
tone and volume of business. In investment
securities, the movement is healthy: but in
the speculative list transactions are fitful,
ana governed by the changing tactics of pro-
fessional operators. The general situation
remains SOUND as to undertone, but languid
as to operations.
The attitude of the ''bear' element in spec
ulation is significant. There is no persistency
in their operations. They sell cautiously and
cover upon small profits, which shows a lack
OF confidence in their position. On the other
hand, the bulls" are inactive. They have
full confidence in the general situation and
in the prospects Of an ultimately higher mar
ket. but are held back by a sort of hesitation
which is not easily accounted for. Prudent
operators are always slow to undertake large
transactions in the absence of distinctly
speculative spirit. The larger conditions
may warrant confidence, and the drift may
be plainly in the direction of higher values;
but they hesitate to undertake a campaign
until there is distinct Outside" feeling
that boom is at hand. That Is the attitude
of the larger street holders of stocks at the
present moment.
This hesitation is undoubtedly encouraged
by business conditions which are largely spe-
cial to this city. In most trades here, there
is considerable complaint of dullness, and
more or less show of a pessimistic spirit
Merchants sales are not proportionate to
their stocks. and buyers see that something
therefore disposed to pursue hand-t mouth
policy of buying. All this is in contrast to
the conditions and feeling existing in the in
terror. From the large Western cities come
accounts of satisfactory state of business
and Chicago reports a healthy activity. So
at the South, conditions appear to be un-
usually healthy; the steamships and railroads
connecting with that section are having
very satisfactory traffic; and the large in
creases in the earnings of the Western roads
show that. in that section also, there is really
movement merchandise hria
there can be no question that the condition of
general trade is far more satisfactory
throughout the South and West than it is
at this center. Nor is there any doubt that
cities like Chicago and st. Louis are rap
idly extending their hold upon that branch
of business. New England is now undoubt-
edly sending direct to the West large uuan-
titles of manufactures which formerly were
distributed through New York agents Equal
ly, our trade with certain sections of the
South is being attacked by the active dis
tributing houses of the West; so that, to some
extent, we are meeting with new competition,
If not losing business, in that direction. Then
it is to be remembered that New York oc-
cuples position of peculiar responsibility
as an intermediary between the industrial
interest and the jobbng interest of the coun-
try.
very large amount of capital is employed
rendering that kind of service; and in the
performance of the service there is some con-
siderable risk, arising from advances upon
goods, loans to manufacturers and invest
ments in mills to which they have become
unwillingly committed. If New England man
ufacturers are willing to sell direct to West
ern jobbers and thereby save the cost of
New York Intermediates, so much the worse
for the great 1rst-hands trade of this city
Moreover, this particular interest is exposed
10 much OF the risk attending a lack of due
adjustment between the production of GER
tain large industries and the demand for
consumption. There have been threatening
arrangements in that relation. For years past
the improvements in mechanical power and
in working machinery have been carrying
this country, as well as others, towards pro-
dUction in excess of the possibilities of cur
rent consumption. There check to that
process in the great panic of 1S93 which serv-
ed as an offset to that crisis of no small value,
But the machinery we then had we have still.
lts owners are anxious to keep 1t employed;
and upon every appearance of an Improvement
ir demand they are liable to rush into an
over supply of goods. The last twelve months
or improved business has already produced
glut of stocks in some important lines of goods
The commission houses have to bear the brunt
or the consequences, such as urgency to rea-
lie, necessity to shade prices and holding
Dack OF buyers to get concessions in prices
Under the circumstances here described
certain large interests in this city are
subjected to a pressure calculated to pro-
duce anything but cheerful feeling in spite
of the hopeful tone that prevails in other
cities and sections.
All we have previously said as to the de-
pressing effects of political agitation and con-
gressional folly upon the financial markets
may be again repeated. Congress has given
itself to the creation of sensations and de-
ceptions for effect upon the coming party con-
ventions and elections to follow What they
are prepared to do for those purposes is
shown in the dangerous folly Of the action
OF both houses on the Cuba question. When
the legislative chambers can be prosttuted
to such dangerous methods of playing poll
tics there is no certainty of what may not
happen. With any nation better able to de-
fend itself than Spain, the Cuba resolutions
would have probably precipitated costly war;
and, in spite of the protests of an outraged
public opinion, there is no saying to what
lengtn OF Danger this same playing with fire
may not yet be carried. Jingoism or rather
the attempt to create it, has become real
public danger; so serious that nothing short of
the adjournment of congress will abate the
pubic anxiety. This is one of the factors that
is preventing the revival of confidence in
trade circles and in the financial interests that
center in Wall street.