The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-05-17
BUYERS ARE ExPEcTANT.
HOPEFUL SITUATION WHICH Is
CONFIRMED IN WALL STREET (.
DEALS 81
HENRY aEws' WEEKLY REVIEW.
Graeco-Turkish Situation More Fa-
vOrable-Furthert GOldf Ship
ments. r

A>AI w AOAl1Ap NA1y ~ La Ills Wcthly
review Of the financial situation Henry
Clews says:
Wall street still remains sluggish, though
with no abatement Of the general steadiness
of values. One Of the conspicuous features
of the stock market is its ready response to
favorable influences, and its comparative in
sensibility to such as are unfavorable. The
predominant underlying conviction appears to
be that the prevailing level of prices is not
only a safe one, but below, the real intrinsic
merits of securities considering existing
ditions and the prospects fairly deducible
from the general situation of affairs But as
this view counts more upon things antici-
pated than upon existing conditions, favor
able occurrences do not lead to any really
active and sustained upward movement. In
brief, it is largely an expectant market, and
in that sense not yet sufhc1entiy developed
to induce active operations.
This hopeful tone has been confirmed by
steady and really important Improvement In
the condition of the cereal crops during the
last week or ten days. The government week
ly crop report states tina, crop conditions in
the Upper Mississippi and Missouri valleys,
for the week ending May 10, have been the
best of the season and really excellent for
farming operations and the growth of crops.
Under the favorable weather conditions pre-
vailing in the principal corn states corn
planting has been pushed rapidly during the
week. Planting is now IN progress as far
and South Dakota, and will begin this week
in Minnesota. In the Middle Atlantic States
and to the southwark of the Ohio and Missouri
rivers, planting is generally nearly COM
pleted. Winter wheat continues promising In
the Middle Atlantic States and in Kentucky
and Tennessee, reports from the two last
named states being exceptionally favorable
Further improvement is also indicated from
Ohio and Indiana, and the crop is reported as
doing well in illinois, Missouri and portions OF
Kansas. In Oregon and Washington the out
look is very promising, but in California the
crop has been greatly injured by hot winds.
Spring wheat seeding is practically completed.
Minnesota and North Dakota having about
finished during the week. Over the central
and southern portions of the spring wheat
region the early soWn has a good start and
is growing we'll. Private reports OF later
date from some of the Western centers are
still more sanguine. These accounts suggest
the possibility of a better spring wheat har-
vest than has been hitherto expected, though
they do not suffice to offset the probabilities
of a short general crop, owing to 1rremed1a-
BILE injury to the winter wheat. All the in
formation from foreign markets points to the
probability of a short worlds crop OF wheat
European buyers are showing q, disposltion to
discount that prospect by making contracts
in our markets, but their bids nave thus
far been too low to admit of transactions.
The probability, however, seems to be that,
upon such surplus of cereals as we may nave
for export from the next harvest, we shall
realize relatively high prices.
London movements have favored this mar
ket during the week. That center has still
taken a hopeful view of the outcome of the
Graeco-Turkish war; and the reduction OF
the Rank of England rate Of discount to 2
per cent is construed as implying settled
conviction in the highest financial circles that,
upon one basis or another peace between
the belligerents is sure to be reached. The
London situation has thus favored specua-
tive operations and New York sales of stocks
to that market have reached about 10000
shares for the week. These transactions have
supplied from s., 100000 tof$1, 800 900 of sex-
change, which is to be presumed has so iar
limited the amount Of gold which. otherwise
would have been exported. At the hour OF
writing the gold shipments OF the ~ week eea are
expected to aggregate about 3,UUoUOo. Al
the current rates OF exchange gold can s ne
shipped to the continent at a moderate profit,
and as the supply OF produce bills is not large
there Is no visible prospect OF an lmmeolate
cessation of the outflow. In estimating the
Importance of this movement, however, IL is
to be kept in mind that the current remit
tances are due. chiefly, If not entirely, to
quick payments for the extraordinary lmpor-
tations being made in anticipation OF an ad-
vance in tariff duties; the effect of which will
be to correspondingly diminish remittances
which, in the ordinary course, would nave oc-
CURED some months later.
Another significant transaction has Deen
ccnsummated indicating the tendency towards
permanent reduction in the rate OF interest
| upon investments. The Illinois Central Rail
read company has negotiated an issue OF $30, :
100000 Of 81 per cent first mortgage bonds
to take up issues of the former Chesapeake
& Ohio Southwestern and the St Louis g
Terre Haute railroads, now incorporated IN
bonds having borne interest ranging pr1n-
| cipally from to 8 per cent This, added to
| the many times larger conversions recently
arranged for by other railroads shows the
willingness of capital to invest in large
amounts at 3@3h per cent. AT the same
| time, it leaves no doubt of the possibility OF
| other roads In good credit largely reducing
their mortgage charges, with CONSEQUENT az al
vantage to the stock-holding interest. The
effect is to place dvidend-paying shares IN a
much better position as to value, especially
in the case Of companies which nave eitecteo
these reductions of interest; for decIne IN
| the rate of interest means relative rise IN
! the market value of principal. One OF the
| first effects of these conversions has been TO
turn the attention of investors to municipal
! securities, which appear to be esteemed as
next in security and des.rableness 70 tne
railroad mortgage. large amount OF that
class of issues is forthcoming, but there is
| limit to the supply, and when that is reached,
railroad shares will have their turn.
| The new phase of affairs in Eastern Europe
| is encouraging to the hope OF an cary re-
moval of that source Of disturbance from lot
| eign politics 1t is not impossible that the
(, settlement between Turkey and Greece may
temporarily hang fire. For, while greece
| is ready enough to accept almost any terms
! that will save her army from annlniIatlon,
Turkey may be expected to seize all the ad-
| vantages she can procure from ner Victory,
! and hence may arise some anxious imagining
between her and the powers. With 1mpa-
| thence of restraint among the Turkish army
! on the one side, and a danger OF revolution
among the Greeks on the other side. this
sort of suspense cannot be long endured.
and the result is likely to be. that the powers
| will feel themselves constrained to grant con
| cessions to Turkey from which the world
public opinion Will loudly dissent II Turkey
! is willing to suspend actual operations 80 as
| to allow an opportunity for pacific negotla-
tons, the occurrence Of the Feast OF Bairam,
which lasts from the 18th to the 10th of May,
will come IN very opportuney. In any event,
the settlement is only question OF terms, and
| with one side submissive and the other un-
seems in the last degree improbable that
| there should be failure to reach an early
peace The only disturbing factor in signt
under discussion in the United States senate.
This is calculated to cause some selling OF
long stocks and a lower range OF prices IN
consequence. II