The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-22
GREAT EXTENT OF TRANSACTIONS
IN RECENT RISES AFFECTING
THE MARKET,
CAUSING INACTIVITY NOW.
NEITHER BULLS NOR BEARS IN
CLINED TO ATTEMPT ANY
MANIPULATION.
This Fact Alone Prevents Slump
Henry C1ews' Weekly Finan-
ciaI Review.

NEW YORK, Nov. 21.-In his weekly
review of the financial situation Henry
| Clews says:
The Wall street markets show little change
from the late comparative dizziness and irreg-
| ularity of prices. Current events do not Suf-
fee to stir speculation to activity in the ranks
| of either bulls" bears, and business is
mainly confined to brief professional turns,
based upon the varying whims of the moment.
| The market differs, however from its condi-
ton of two or three weeks ago. in that it
appears to have reached solid bottom as
to values. There are no pessimists with cour-
age enough to attempt large depressions; and
promising to energetic manipulations for a
pronounced rise. The Cuban idea having
largely lost its force, the lingo sentiment
being apparently on the wane, and the Ne
braska railway decision having again been
postponed, there is less material for the ere
alton of sensations, and operators are driven
to pay more attention to current factors re-
lating to conditions which directly affect the
earning value of securities, which is a hope
full symptom in the situation, as facts of that
nature are generally making a good showing
and yet have been long disregarded, or not
sufficiently appreciated. The result of this
change is a greater discrimination in pur-
chases, selections being more regulated by
the merits of the several securities than by
mere sensations. This is a distinct gain in
the morale of the market, calculated to en-
courage confidence and to produce more ra-
tional regulation of values.
There is, however, one factor which is Sc
cretly eXerting a greater influence upon the
market than any other, perhaps more than
all others combined, but which is compare
lively little regarded. The amount of stocks
thrown upon the market in the recent great
liquidation is probably much greater than
has been generally supposed. The sales were
not merely from the ordinary floating supply
being carried on the market. Since the great
breakdown of 1898 and pending the silver eX-
element the friends of railroads and other
corporations had found it necessary to pro-
tect their interests through buying the stocks
which were coming in large volume upon
the market. But for those purchases the eff
feet on values through the three years of
suppressed crisis would have been much more
serious than it proved to be. Those accumu-
lations must have been immense. and for that
reason the holders of the stocks the
more ready to seize the first opportunity TO
realize. The sanguine outside element saw,
in the recovery of confidence and trade, a
legitimate basis for a great rise in prices.
and that impulse they bought without
stint or fear They overlooked this vast I'M
seen accumulation. and before they awoke
to a perception of its existence the tin boxes
of corporate capitalists had been emptied on
the market at the highest range of prices.
This has been the great controlling factor
in the market since the beginning of October,
and few of the rank and file of operators
have noticed it. Herein lies the answer TO
the question so many are asking-why does
not such a generally well-stuated market
react from the great fall in prices? The re-
ply is-the supply of stock the market
has been Immensely increased, and a recov-
cry in prices calls for corresponding increase
in buying capacity and carrying ability. 1t
takes time to digest and distribute this large
sudden addition to the floating supply of Sc
curities and to collect the needful set
of buyers
1t is significant fact that this avalanche
has not produced more serious effects on
prices than have actually occurred. That
fact plainly implies great confidence in val
ues and a large purchasing ability in the mar
ket. 1t is to be remembered that the break
in prices was stimulated by the large fall
outflow of currency to the interior and the
consequent check upon the ability of the
banks to extend their loans upon stock col
laterals That restraint is now abating. The
money is coming back rapidly. and at the
opening of the new year the banks will again
be flooded with lOanable resources. When
that point has been reached the market will
have been subjected TO a long and testing
trial of it's strength, a new set of buyers will
be brought into the market by the feeling
that conditions seem to warrant new up
ward movement in prices, and-no adverse
conditions being forthcoming-the logic of
the January situation will seem to favor a
vigorous "bull'' campaign. 1t is not impos-
sible that this tendency may be appreciated
in advance and its outcome partially antici-
pated next month.
The next considerable element affecting the
market will be the assembling of congress,
with it's attendant recommendations from the
president and his secretaries. So far as can
be seen at present there is little probability
that any seriously disturbing measures will
be introduced 1t may not be easy to keep
both houses within pacific limits in respect
to Cuba; but there seems to be little room
for doubt that the president will use his ut
most influence to prevent that question from
drifting into phase that would disturb pub
lie confidence through deranging our relations
with Spain. He would be strongly backed by
the business sentiment of the country in
taking such course and the lingo legislators
may be restrained from excuses by the dis
covery that there is no longer any political
capital to be made out of this question, but
rather public disfavor.
In public estimation by far the most impor-
tant matter to occupy the attention of con-
gress is currency reform. As yet however,
Wall street has not generally viewed it a
question bearing very directly upon the mar
ket for securities This apparent neglect can
not be due to oversight of the fact that the
quality of securities depends upon the quail
ity of the money in which they are payable;
perhaps the explanation is rather that the
exchange fraternity have some doubt whether
any legislation on the question can be at
present accomplished. On this there is I'M
doubleday room for differences of opinion
But two things appear to be certain first
that the president and secretary OF the treas
ury. and apparently also Speaker Reed, will
earnestly employ their influence to secure
the Slption of such legislation; and, second
that if congress should be found lukewarm on
the subject members will be subject to a
pressure from the business sentiment OF the
country calculated to arouse them to a sense
of their duty, for the earnestness Of conserv-
ative opinion the subject is little less
than that which demanded the repeal of the
coinage clauses of the Sherman law of 1890
In any case it cannot be denied that the pres
ent condition of our currency is attended
with grave misgivings, especially across the
Atlantic as to the value of our securities.
That, indeed, is the one great obstacle with
which we have to contend in placing our
obligations abroad and in keeping them
there. If something is not done by the next
congress to remedy this distrust the feeling
will be deepened; if congress passes a law
tending to give assurance that we shall al
ways be able to pay these obligations in gold
our foreign credit would be greatly strength
ened and source of demand for our
stocks and bonds would be created. What
ever may be done in this respect to the cur
rency a resolution should be adopted declar-
ing all obligations of the United States gov
eminent payable lin gold" not as at pres
emit lin COIN which may mean either gold
or silver. Also, as means of putting a
uietus on the silver agitation the treasury
notes issued under the act of 1850 should all
be withdrawn as rapidly possible and the
silver coin left to circulate in their stead.
That would probably make a sufficient guam
tity to enable the people to better understand
what silver money really is, if it does not
then treat the Bland" issue of silver notes
in the same way.