The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-11
LONGS HAVE LIoUIDATED.
HANDS OF THE SMALLER
HOLDERS.
CONSERVATISM IS THE RULE.
Says Henry Clews In His
Review.
Special to the Globe.

NEW YORK, Oct. 10.-In his weekly
review of the financial situation, Hen
ry Clews says:
In the securities market the past week has
been unsettled and irregular. The effects Of
the two weeks of realizing and decline are
apparent in a more conservative feeling and
in a disposition to follow the course of the
market rather than to force prices and hold
on for a fresh rise. There is no doubt that,
during the late reaction, a very considerable
amount Of 'long stock has been distributed
by capitaiistic owners, who have been waiting
an opportunity to l.quidate and were satisfied
with the large advance in prices of the three
previous months. Those rea-izings have ma
teTially changed the position of the situation.
The men of large means and influence who
have thus liqu.dated are no longer behind
the market with the sustaining power of their
prestige and their various resources for sup
port. They are rather outside OF it, and more
or less influential in dfscouraglng bull 1nl1u-
ences in order to replace at lower prices the
stocks they have parted with. Perhaps few
or none of them regard the upward movement
as having touched its apex; nor is it likely
that they have retired from the market; but,
as intending buyers they are willing to allow
free Play to all influences calculated to en-
able them to buy in again on favorable terms.
Thus, for the moment, the market has lost
much of the impetus it had previously re-
ceived from many influential "bulP leaders.
1t results from these changes that stocks are
new largely in the hands Of holders OF modest
caliber backed by moderate margins, and
without the lead or support of strong comb
nations. There is NO reason for suspecting
that these holders are falling to keep their ac-
counts well protected their large recent profits
should enable them to do SO; and 1t is per-
haps safe to assume that, in this respect, the
market is in a reasonably conservative condl-
ton. But market made up principally OF
large number of comparatively small holders,
though in some respects a safe one, yet lacks
some elements needful to the accomplishment
of large results in pulling" 1t needs organ
ization and the force of large capitals and the
skill of experienced operators. The difference
between the market of today and that of three
weeks ago lies mainly in the absence CT these
elements of support. 1t has, however, this
important but unnoted factor in its favor:
That large portion of the strong men that
have recently got out of stocks appear to be
satisfied that an average fail of full seven
points in prices is a very substantial one, sur
icient to make many stocks again relatively
cheap and as much the market, in its
present temper and under existing material
conditions is likely to yield These operators
have their eye upon the chances for another
upward bound in prices at no distant day, and
they think it better TO lay in fresh holdings
upon the drops in prices rather than TO force
values down and sacrifice the mass OF smaller
holders whose cooperation they may be glad
to have in a subsequent bull movement.
steady and covert movement of this KIND to-
wards the return of stocks into strong hands
appears to be in process; but the buying is
conducted quietly, SO as to avoid the effect
Of prematurely starting up prices. Just now
affecting stock exchange business; and it is
of small value as means of holding the
market against react.onary influences.
Tho extraordinary interest taken in the
nlayoralty canvass acts as a disturbing infiu-
ence. Investors are naturally sensitive TO any
seeming Feasibility that either the Tammany
or the George ticket should succeed; and,
with so much confusion and uncertainty as
exists as between the chances of the four
contestants in the field, the temper of the
market oscil;ates with every change in the
political Kaleidoscope. The attitude OF the
bear contingent is significant Considering
the weakening effects of the past reaction,
they are much more cautious than might be
expected, avoiding large lines of shorts and
generally adopting mild tactics-barring their
enterprising canards, which are far from
mid
While Wall street is taking resignedly this
interruption in its adjustment of the value of
securities to the changes in the conditions
that control their earnings, we find no change
in that great revival of our industries and
trade which has started this movement. Step
by step the great recovery progresses, and has
new reached every branch of trade. In some
industries manufacturers are taken by sur
prise at the expanded prospects that are open
ing before them. 1t is something more than
had been hoped for that within six months,
our Whole range of home markets should have
risen from comparative prostration to a state
OF healthy prosperity. But added to this, we
have plain evidences that our growing grasp
upon the export trada-which had been re-
garded as only an incident of the exceptionally
low prices connected with the depression-is
natural result of our nat;ona, development,
which hes come to stay and to give US a new
and profitable expansion of our trade. This
new drift has become especially conspicuous
in the iron trade, in which our manufacturers
ara easily tak.ng large orders over the heads
of the British and German competitors, and
also in the electric industry, in which
equally successful against foreign manufac-
turers.
The best expression of the extent of the re-
vival of trade is afforded by the condition Of
the transportation interest. A true measure
of the recovery in railroad traffic is afforded
by tine following statement of the gross earn
ngs of twenty-one railroads for the fourth
week of September, just reported, compared
with those of the same week of 1896: