The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-12
CISI0N HAS CREATa Il CONFU-
SION,
MUCH REALIZING RESULTING.
"A TEMPORARY CHECK TO THE
STEADY DRIFT OF PRICES
UPWARD.
STEADY INCREASE OF GOLD.
Treasury Conditions Very EncOur-
aginE-Henry CIeVvs' Weekly
Review.

NEW YORK April lin his week
ly review of the financial situation
Henry Clews says:
Affairs in Wall street are in a somewhat IN
certain and vacillating condition. The
preme court decision relating 10 the Trans
Missouri Freight association has, for the time
being at least, broken up the steady drift
towards higher prices which had previously
been in operation Much realizing has re-
suited, some breaking up Of cooperative
luL' arrangements, and a new and confused
situation Is me result At the moment eacn
operator Is going 'On his own hook; there
Is no fixed conviction 10 the future drift
OF operations; and consequently there is little
u attract outside operations and the market
is chiefly confined to professional operators
The pessimistic side have taken rope freely
ana the market is considerably oVersold,
which at The moment gives the bulls" an
advantage. Just now, London sees nothing
In The situation TO encourage either buying or
selling, and maintains simply an expectant
attitude IN word, the present condition is
simmering one, and for the most part oper-
a-1rs are waiting for indications OF the future
dr.tt.
me supreme courts deferment Of the hear
ing Of the Joint Traffic association case until
The first week in October has had a generally
wholesome effect. It wiIhdTaWs public atten-
ton from the case Tor six months, and thereby
allows the market to drift away from the
doubts the litigation has raised, and leaves
60 free 10 follow other and more normal inhu-
ences. What those influences are likely TO
be- thus becomes the question OF the moment
All least. il may be said, that there are no
disturbing factors cOnspicuously in sight On
the other hand, there is an abatement Of GER
tain obstructions that have helped TO unsettle
r0u1dence- Popular excitement on the CUBAN
question has greatly moderated. The admins
rra-iOn shows q disposition 10 avoid unnec-
essary entanglements in il, and Spain exhibits
e respect for the maintenance OF amicable
relations with US, which together encourage
the hope that peace between the two nations
may be preserved. Also, there is reason 10
hope that N the relations between the Euro-
pean powers and the Greeks and Cretans. the
danger point has been passed. The concert
0f the powers is cautious in its steps, on the
one hand seeking 10 avoid prOTocatiOn 10 the
Greeks and Cretans, and on the other holding
Turkey IN check and influencing her towards
a pacific attirude,-all Of which is favorable
towards cooling the violent ardor OF the would
be beligerents- There is, IN no quarter, any
symptom Of failure of unity Of purpose among
the great powers; and so long as that posi-
ton is maintained, there viii be little chance
OF the Greeks precipitaJing a GrecO-TuTkish
war. with its possible European complications.
The s-eadier tone in the European financial
markets is evidence that this view prevails
here. which is e factor of small impor-
lance. The reduction Of the Bank Of England
rate Of discount 10 212 per cent, also indicates
hopeful estimate Of the political future
There is therefore distinct gain Of conf
dence, 50 far as respects European compli-
cations. compared with the conditions existing
last month; which is distinctly in favor Of this
market.
An Indication in favor Of railroad securities
IS suggested by the fact that the railroads
SHOW no disposition 70 turn the regal CIdl-
lenge against their freight associations into
an occasion for cutting Of rates. AS rule,
their relations remain harmonious, with
prospect that they will continue so until at
least decision is reached in the supreme
court in the case Of the joint traffic associa-
ton The steady increase Of gold in the
treasury is also a highly encouraging cir
cumstance. The net stock held by the gov
eminent is now S152.50o, COO which is the
largest sum held since November, 1890. Nor
has this accumulation been made at the eX-
of the mnfr0DOlitau banks which last
week held SS6. go 600. With such supplies, We
may look with comparative Indifference upon
the possibility Of shipments of the metal at
later stage Of the season, which seems 10 be
10reshadOWed by the continuous hrmness IN
the rates Of foreign exchange. SO far, we
have felt no effects from the demand for gold
from Austria and Japan. There is a mod
crate drain to both those countries, which
has been met chiefly by the Bank Of Eng
land: but what Importance that institution
attaches to it Is shown by the fact that this
week the Bank has reduced its discount rate
20 2lz per cent The bank doubt Teckons
upon being able to get gold from this country
should this outside demand develop into larger
dimensions at e later stage; but il is doubt
full whether in either Austria or Japan there
will be any balance Of exports large enough
10 enable those countries 10 command much
foreign gold. For our part, we can we'll
enough meet any demand for the purposes Of
either country with our annual production or
fifty millions. Its outflow would be only
natural ana healthy movement.
In its general aspect, the condition Of trade
ment, there is a check TO operations arising
rom the uncertainty about the prices OF
wide ranges of goods. growing out OF the I'M
lending changes Of tariff. The extraordinary
hoods in the Mississippi valley have also an
-lrerrupting effect, not only from the direct
loss of property and its attendant suffering
but also from the suspension of transport
facilities over q large expanse Of country
Also, some misgivings are felt as to the pos
slbllty OF cotton planting being delayed IN
certain flooded sections. There is perhaps
some reason for the feeling; but. while the
delay would be unfortunate, it would have
the compensation Of an enrichment OF the
and from the deposit attending the food.
and would probably induce an increase Of
planting IN sections which have escaped the
overflow of the river It IS therefore prema-
rure 20 draw any conclusion as 10 the effect
Of the foods upon the cotton crop. Even,
however. should It have the effect Of dimin-
-shing the crop. there would be a cOupenSa-
ting advantage in the relatively higher price
for the staple that would result
In spite OF these drawbacks. the feeling in
trade circles is reasonably healthfuL all
upon a moderate scale, yet they are frequent
and the aggregate is not discOuraging, either
10 amount or profits. The quarterly re-
ports OF the commercial agencies show re-
markedly small amount of liabilities in the
three months failures. which is gratifying
indication Of the financial condition Of men
Of business and helps TO sIiffen confidence in
mercantile credits Upon the whole. the out
look appears 70 favor q steady recovery OF
tone and OF values in the Wal street mar
Eets. The reception OF the new Reading is
sues has had an encouraging effect in the
% The speculative list. I look. on the whole,
for an improving tendency in securities, per-
haps gradual. but reasonably certain.