The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-20
No INITIATION IN IT
EVERY EVIDENCE THAT RECENT
GREAT INCREASE OF TRADE
is WARRANTED.
FIGURES TELL THE STORY.
LARGE GAINS IN BANK CLEARINGS
AND RAILROAD EARNINGS
REPORTED.
FINANcIERs ARE MORE HOPEFUL
Altogether the Situation Is Excep-
tiOnaIly Satisfactory, Says
Henry CIews.

Special to the Globe.
NEW YORK, Dec. 19.-In his week
ly review of the financial situation,
Henry Clews says:
The events Of the past week have
been favorable to the stock market There
have been no developments of a nature likely
to disturb the steady growth of confidence,
and affairs generally appear to be assuming
a more encouraging shape. Tariff, Cuba, sill
yer, and a lot of disturbing questions which
had kept the country on the edge Of upheaval
are fairly out of the way; and our legislators
are now wisely giving their attention to press
ing home affairs and such measures as will
promote the return of prosperity. Currency,
bankruptcy reciprocity and other distinctly
business or economic questions are forcing
themselves to the front. Currency very prop
erly leads them all; for this vitality affects
both our homes and foreign relations more
than any other issue. The outlook for any
thorough reform at this session is not par
ticularly bright at this moment, owing to
strong leadership; but partial success will at
least be gained and then the campaign OF
education can be pushed on until satisfactory
revision Is attained. OF one thing Wall street
may be assured-that is, that it has less to
fear from and more to hope from congress
than for several years past.
The business outlook is also another sub
stantial source Of encouragement. The large
gains in bank clearings and railroad earn
ings prove beyond dispute that trade is in
creasing There is little speculation and val
ues are low, SO that these gains cannot be at
tributed to imitation. This Is the dullest pc
rod of the year. and yet merchants, with few
exceptions, report business fairly active. In
the interior the recovery has been more pro-
nounced than at the seaboard; New York be-
ing a laggard in this respect, because the brunt
Of the late depression was felt here, and the
size and variety Of the citys business inter-
ests make 1t slower in responding to new
influences than smaller cities.
Railroad earnings tell remarkable story.
In the month of November 131 roads reported
aggregate increase of 20 cent. and in
December even this rate Of progress Is being
surpassed. In some cases our railroads are
beating the records for earnings; and, as the
gains are very fairly distributed over the en-
tire country, it follows that they must be due
to general increase of traffic and not to SIN
gle causes, although shipments of grain, cot
ton and provisions seem to- have been the
largest item Of growth. Altogether the rail-
road situation is exceptionally satisfactory.
The only dark spot is the remote probability
of any pooling law; yet the railroads are not
likely to cut rates with plenty of traffic In
sight as at present. Our railroads are down
to hard-pan. Consolidation and reorganiza-
ton have put them upon new and stronger
footing. AS rule they are now managed by
practical railroad men, not spectators, and
financial control has passed into more con-
servative hands; that there Is little like
lihood Of a repetition of the disgraceful man
agement which characterized American rail-
roads In the past. Increased earnings are en-
abling some to resume or increase dividends
and others will shortly follow, making them
desirable investments. These facts, as well as
the approach of January disbursements, ac-
count for the present undercurrent strength
of the stock market. The recent advance has
been encouraged by local operators, and their
efforts supported by the big holders OF stocks
who are always the first to see new opportuni-
ties A favorable feature was renewed foreign
buying Europe has long been so shy OF cur
investments, and we have been SO eompiee ely
thrown upon our own resources, that less at
tention has been paid to the London market
than usual. Some time ago this country de-
clared its financial independence, and a'ely
foreigners have been bears on this market
to our benefit and to their disadvantage.
Apparently, however, there has been change
Of front on the other side; and, should Europe
buy with any freedom, the effect upon
values would be important Increased activi-
ty in both call and time money, between now
and the opening of the new year, will be likely
to hold In check any further upward move
ment In the stock market AS matter OF
fact higher rates of interest will be sure to
produce moderate reaction from the recent
higher level of prices, in which event. it will
pave the way the better for another forward
movement early in January, and thereby give
the new year a good send-off. Meanwhile
advise quick in-and-out buying and selling
tor small profits only.