The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-13
PRESIDENTS POLICY EMINENTLY
SATISFACTORY TO sPECULA-
TORS IN WALL STREET.
SUBSTANTIAL ADVANCE MADE
PRICES REACHING A POINT WHERE
MORE REALIZING WILL
FOLLOW.
ATTITUDE OF THE CONGRESS
Gives Assurance of Conservative
Legislation During the
Session.

Special to the Globe.
NEW YORK, Dec. 12.-In his weekly
review of the financial situation Henry
Clews says:
A substantial advance has taken place In
the stock market during the past week, and
prices are now approaching level that Will
induce realizations unless fresh stimulus to
the rise is obtained. This advance has been
entirely due to the improvement in political
and business affairs and was thoroughly
justified by conditions.
President McKinley's message made an ex-
cellent impression. His position on Cuban
affairs, which have long been a serious
source of disQuiet, was eminently satisfac-
tory to men Of responsibility and thought
On the currency question he takes the side
Of progressive reform, and his whole mes
sage, If open to criticism at certain points,
breathes the spirit Of peace and Cancellation.
What is equally important, congress is in
a less irritable mood than formerly; and-is
likely to give more attention to pressing
home questions than to disquieting interna-
tional affairs. The presidential election is
behind us. and the tariff question has been
settled; so there is, happily, less occasion
for bombastic speeches and resolutions for
political effect than a year ago. Currency,
bankruptcy and railroad legislation are like
ly to occupy more effective attention than
Cuba or Hawaii; for which, if results are
accomplished the nation will devoutly return
thanks. This promised freedom from dis
turbing political agitation Is destined to
of business prosperity; for nothing has so
completely fettered enterprise in the last
three or four years as the state Of chronic
fear largely developed by political disturb
anceS.
Nor Is the improvement confined to polit-
ical affairs. These have very close con-
nection with business conditions; but the
latter show recovery Of their own. The
great foreign demand for our wheat at high
prices has impaired a wonderful stimulus to
business In the West, which is not likely to
subside when that cause is spent. The whole
interior is apparently about to start on a
new era of development. Kansas cares lit
tie about free silver now that It's citizens
are getting out of debt and becoming pros
porous. The iron trade is confidently look
ing forward to a very large business in 1898.
The South is fairly prosperous in spite of
low priced cotton and the check on traffic
by the yellow fever scare. Here and there
the finger can be placed upon sore spots;
some Of our industries are still suffering
from overproduction; and at the big Eastern
centers. where the brunt Of hard times had
to be borne. the recovery is naturally slow
er than in younger and smaller centers.
The general trend, however, is certainly
towards expansion; and the strong under
tone of confidence which now prevails will
within a few weeks express itself in action.
This, however, is not the season for bust
ness activity, and great improvement need
not be expected before the spring.
Railroads are now having their full share
OF the new prosperity. Earnings both net
gains. The uniformity and steadiness of
these gains is something very unusual. For
the last three months the seventy-five to
eighty roads regularly reporting their earn
ings each week have shown gains of from
10 to 20 per cent. Very few roads reported
declines, and these were unimportant. AS a
result a few dividends have been increased,
and others are certain to follow II the roads
only refrain from rate-cutting. The pre-
ferred stocks of reorganized companies have
of course been strong. because under these
conditions they would be first to benefit.
Some properties have also benefited by fund
ing their debt at lower rates of interest;
a process which is likely to find favor with
stockholders. The darkest side of the rail-
road situation is the pooling question. Rail-
road managers are not in the brightest
frame of mind in this respect They are
united in their demand for congress legal
izing the pooling method; but they are very
properly not prepared to accept the terms
upon which congress seems willing to act
that of surrendering the rate making power.
Stockholders should make themselves felt
in this matter. Thus far they have left the
whole burden Of influencing legislation to
their managers. This is not very proHis-
ing means of success.