The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-26
POWERS NEARER IN TOUCH.
LESS DANGER of GENERAL WAR
THAN FOR MONTHS PAST, SAYS
HENRY GLEWS.
BEARS COMPELLED TO COVER.
Decided Recovery in Tone OF Specu-
IatiOn-Weelx's Markets Re-
viewed.
Special to the Globe.

W All SJT66L mas SHOWN a ueClueu recovery OF
tone during the past week. The bears
have exhibited considerable alacrity in COW
ering their sales. London, after selling Amer
leans last Saturday and Monday, has since
and abroad the speculative atmosphere has
cleared up, with the promise of brighter
financial weather and smoother sailing.
After some months of timid scanning of the
Eastern question, London, Paris and Berlin
and equally New York seem to have come
to simultaneous conclusion that while 1t
has some conceivably very grave possibilities,
yet the probabilities preponderate so largely
in favor of the war being localized to Turkey
and Greece that there is no sufficient rea-
son why the financial markets of the world
should be held in chronic restraint by these
conditions The powers have foreseen the
contingency which at last has happened.
They have prepared for the situation now
existing by mutual understandings, and when
the combatants have exhausted themselves
they will fall the potter's clay into stronger
hands to be easily nodded into such read
justments as the powers may think most
conducive to international peace. 1t thus
turns out that affairs have drifted into
course which clears the way for the easiest
settlement of these complicated and dangerous
arrangements. When that final adjustment
comes, it may bring some very valuable po-
litical advantages. Pending their discus
sion the powers have had to show their
hands to each other quite plainly. There has
been an indirect revelation of state policies,
and the different governments now under
which have long kept them jealous OF each
others policies and ambitions.
Out of all this will come Fsome considerable
establishment of mutual confidence between
the powers. Precedents have been established
for future guidance at the most sensitive
point in European politics, which will tend
to facilitate future action in this always IN
settled question. And-which is still more
important-the supposed defunct earlier con-
cert Of the powers has been invested with
new life and has shown itself capable OF
maintaining a harmonious cooperation for
the maintenance of the peace of Europe. Lord
Salisbury comprehended the practical impor-
lance Of this peace-protecting combination
when he called it "the federation of Europe,
for such it virtually is-a union for the pro
lection of a continent against wanton IN
trusions upon the public peace by small and
ill-regulated governments. y 1t does not seem
too much to hope that this achievement Will
henceforth tend to establish better relations
between the great powers and to diminish
that paralyzing apprehension OF Impending
war which, for years past, has returned Win
every spring. The mitigation OF that po-
Iitical distrust may easily have most impor-
tant effects in the restoration of financial
confidence. 1t is calculated to abate the
reservations maintained among the large
European bankers and thereby impart an
important stimulus to forms OF enterprise
which have long been held in suspension.
In this way the Graeco-Turksh imbrogllo
NAV at no very distant date. prove TO be
the indirect cause Of great revival OF IN
dustrial and commercial confidence
1t is probable that these foreshadowings
from current events are at the bottom OF the
recovery of steadineSs on the european
bourses The events ct, the war are now
having little effect on those markets, APP
parently because the conclusion has peen
reached that the powers have the whole
matter in control and that when they choose
to intervene the final settlement VIII De
made in the interest OF more SATISFACTORY
basis Of the future peace OF Europe: IN any
event that is about the conclusion Wall
street has reached; and it is therefore Cs-
posed to concentrate its attention upon IN
fluences nearer home and dismiss the Turks
and Greeks as factors of but second or th1rd.
rate importance in determining the course OF
investments.
There are plenty of home tendencies Just
now to occupy the hopeful attention OF the
stock exchange. The steady drift of invest
ments to a lower rate of interest is q mat
ter very directly affecting the future market
prices Of stocks and bonds. The recent ar
rangements of the Lake Shore and New YORK
Central companies for converting each $780,
0OO 600 of their mortgages into bonds bearing
80 per cent, is a striking evidence OF TINS de-
| cline in the rate of return upon long IN
yestments, and there are indications thdt
| much more of the same kind Of conversions
| are likely to be forthcoming so soon as imam
| ciaI affairs become more settled here and
| among foreign holders OF our securlLl l,s
| The amount of the bonded debt of our rail-
! roads bearing rates of interest over per
| cent was in 1895 follows: -,
From to per cent dad ~
| From to per cent .............. 5zS O00'O0(
| From to per cent ............ o4I 'ZoO'Vos
| From to 9 per cent .....t....... Za,V09'U0t
| From to 10 Per cent -.-....' 10 40 OO oOS
| From 10 per cent and above ll,oO0,00O
Total . IS, 1876 SOC. 90,
This shows that there is outstanding $685.,
| 600 OOO or so per cent Of our entire railroad
bonded debt, now bearing rates OF interest
| over 4 per cent. This indicates the large
field covered by bonds which stu remain
subject to the early relatively hlgn rates o.
| interest. and which may be brought under
/ this process of scaling interest charges. Inc
bearing of the process upon stockholders Is
two-fold; in the first place, 1t VIII leaVe
| larger portion of the net earnings available
! for the payment of dividends; and, next, II
tends to increase the price of the stocks
| lust in proportion as their earnings or trt
| prospects CT earnings are thus improved
| We have thus reached point in the develop
ment of railroad finances at which the stock
holder may expect to begin to realize his snare
in this great branch of investment
| The prospects of the general business o.
| the country are steadily improving. Tht
| tariff is not viewed with the dissatisfaction II
the commercial community that is expressed
in some other circles. The senate is showing
more desire to reach early conclusion upoI
it. and when the bill is enacted the last lmpor
| tant obstacle to trade will be removed ant
| business will revive in spite OF all theoreti'
| differences about rates Of duty
The export trade remains active, the snip
ments for March having exceeded those TO
! the same month of any year in the history o
! the country. Contracts have been made TO
shipping large amounts OF produce so sooI
as canal navigation opens; so that the actlv
ity of this branch of trade Is likely 70 o.
! continued The light stocks of wheat in Eu
rope and the expected failure of the French
| and Russian crops are factors in favor o
full prices for wheat; which would benen
this country, especially should the weathe
conduce to some recovery of our wheat crol
| prospects. Taken as a whole, the aspects 0
| the present outlook appear, to my view, yer.
| favorable to a steady Improvement in tn
| market for securities and we regard the pros
poets of buyers being more promising thai
! those of sellers.
WHEAT MARKET BULLIsH.
War Uncertainties Have Made Beal