The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-08-16
REVIVAL OF ACTIVITY IN THE
STOCK MARKET SURPRISING
TO SPECTATORS.
EVERY ONE WANTS TO BUY.
THING KNOWN SINCE THE
EIGHTIES.
RAILROAD EARNINGS SHOW WELL.
They Tell the Story of increasing
PrOsperity-LOndOn Slow to
Respond.


review of the financial situation Henry
Clews says:
The readers of our weekly advices will not
mead to be reminded of our continuously re-
peated foreshadow.ngs Of a great up
ward movement in the market for
securities. We have the reali-
cations of our forecastings, and upon
scale surprising to even the most
sanguine observers. For the last two weeks
the transactions the exchange have ex-
ceeded in volume the most active operations
in the $685. and yet the movement Is clearly
only in its beginnings
The market appears to have come all at
once to solid conviction that the recovery
predicted in both trade and finance is posi-
tive reality and not the mere hope OF san
guine optimists; and with this conviction
somes in an entirely new state or things. in
which the marking up of all kinds OF securl-
ties becomes inevitable. One of the most
striking features of this new situation is the
breadth of the buying movement. Every
thing Is regarded as safe purchase, and the
consequence is that from 100 to 100 different
securities are now dealt in ON the exchange
in the same day-a fact certainly unparalleled
in the history of Wall street speculations.
This exhibition of breadth may perhaps be
attributed principally to the fact that since
1890. or chiefly during the great depression,
the stock exchange has added no less than
ST. 780 600 900 of new securities to its list lex
elusive of the reissues of old, which have
amounted to 81, S65, 900 000).
This very large increase in the variety and
deserving of attention. One obvious effect is
to afford increased attractions to both in
vestors and spectators. The amount OF in
vestments now represented on the New York
stock exchange probably far exceeds that
dealt in any bourse of the world, possibly
excepting that of London Now that it is
subject to great awakening Of interest and
to a large recovery in values this market
must make it's influence felt as it never has
before, and must appeal to foreign investors
with an effect hitherto unknown. To move
of however. makes
q correspondingly increased demand upon
floating capital, whether for the purposes OF
purchase or of margins on speculative &C
counts. 1t remains to be seen to what extent
such funds will be forthcoming. Upon that
condition much must depend as to the future
course of the market. Certainly there must
be some correspondence between the amount
of means available and the sum of securities
to be moved In the present situation that is
especially true. For the case is not one In
which some special or restricted set of Securi-
ties are tempting inducements for purchase;
it is a case in which nearly everything on
the exchange list may be regarded as an ex
ceptionally profitable purchase. 1t is in this
sense opportunity for investment and spec
ulative profits such as has never before &C.
Cured in the history of the % exchange ken
ply or the relative lowness Of prices. In pro-
portion as transactions are widely difused
over the list, there will be less Intensity of
activity and forcing Of prices on certain Sc
curities. That would tend to moderate the
upward movement, but at the same time to
prolong it, and the result would be that the
miximnm range of prices would be reached
at later stage do not venture any proph-
ecy on this point. Yet the way in which the
market Is now acting seems to indicate a
tendency in this direction. The recent fire.
quent realizings upon strong market mean
TSainly that holders are transferring their
holdings from stocks which have had a sat
isfactory rise to others which have had less;
which is sound method of operating, though
1t may not be conducive to excitements or
helpful to cliques of professional operators.
Tn, &c hac m
ests that this great mass of investments
should be lifted to the higher level to which
they are destined by gradual and sure pro-
cess rather than through series Of violent
spasms which disturb confidence rather than
confirm II.
The whole commercial and financial drift
of the country Is moving parallel with the
covery in the investment markets. The rail-
road earnings tell the whole story Of business
revival. The interior roads are showing in
creases of earnings ranging from to 20 per
cent; and yet the improvement is only in it's
beginnings Some doubt has come over the
corn crop in certain sections; but the wheat
yield may be safely calculated at 500, 600, 900
bushels. The movement of iron ore at the
West is unprecedented in quantity; which
shows what may be expected from the trade
that serves as the barometer for all other
trades. Interior commercial buyers, who are
hoching to this city in unprecedented num-
bers, report an encouraged feeling and
guine expectations for the fall trade in all
sections. City bankers report their country
correspondents as unusually confident about
the prospects of business and as DESTROYS of
making large arrangements for accommoda-
ton for the next six months. The foreign ex-
changes have turned in our favor with the
expectation, both in London and here, that a
season Of gold imports is about to set in
which may make an important addition to
our stock of the yellow metal. The Klondike
gold discoveries cast their shadow before
them in suggestions of further large additions
to the worlds stock of gold and the conse-
Quent displacement of the deprecated money
metal that has so shaken confidence during
recent years.
London's obstinacy in holding aloof from.
buying stocks will prove sorry thing for
them. The market will be held up on this
side until London becomes a buyer On a large
scale. London commenced to sell our stocks
at the time Of the Barring failure in 1890 on
the fear that we were going to drift to sill
yer basis. They have been harping upon the
need of currency reform ever since, and they
since in that direction. What is more i'm
portant than anything else in the situation
which they fail to recognize, is the return of
prosperity in this country, which will nut
money into everybody's pocket, and when that
occurs they will banker after the best money
and not the poorest; so that whenever called
upon to vote they will vote for gold money
and not silver money. What stands stronger
for currency reform than such an attitude of
the American people? With the changed con-
ditions that have taken place Of late our
money Is in no present danger. In the last
four years we have gone through pretty rigid
to realize by and by after our securities have
gone considerably higher, and accept the in