The Saint Paul globe., 1897-11-15
PARTIAL RECOVERY NOTED,
ACTERIZED AS LARGELY
EXPERIMENTAL.
HENRY cLEws' WEEKLY REVIEW.
1t Is Somewhat Pessimistic in Its
ODtimism-The Situation
Abroad.
Special to the Globe.


During the past week the stock exchange
market has continued unsettled but never
theless has exhibited an improved tone and
a partial recovery in prices. The Respondent
and semi-panicky feeling has disappeared, and
the downward pressure appears to have eX-
hauSted its force This improvement has
come in an entirely natural way. The re-
duced range of prices has been regarded as
low, compared with the condition of the cOun-
try, the large earnings Of the railroads and
the prospects Of future traffic. There has
been general feeling that at some later
stage, there must be a reaction which, with
an easy money market, may carry values ap
proximateiy near to the level Of those OF
September and this has brought buying or
ders into the market which have produced
rise of fully two points most of the active
stocks. The purchases have not been on a
large scale, but the fact that such an advance
has resulted from such moderate buying is
evidence OF the intrinsic strength Of the mar
ket.
The staying quality of the market however
remains TO be tested. It may be that buying
is based upon an expectation of q moderate
advance rather than in view Of any considera-
able immediate advance. We are disposed to
regard 1t as experimental rather than as
laying in of stocks in anticipation Of
straightforward and continuous rise never
theless we do not regard it as impossible that
it may develop into the latter. We are, how
ever, coming near to the assembling of con-
gress, and prudent operators are likely to
avoid accumulating large lines of stocks until
the administration and congress have shown
their disposition upon certain important and
sensitive questions. At present there is no
positive apprehension Of any disturbing ac-
ton being taken; and yet as 1t is possible that
jingoiStic and silverite orators may try 10
raise a breeze in the senate or even in the
house, there is a disposition to defer large
operations until the temper of congress has
fairly expressed itself. Considerations OF this
kind are likely to check the reviving "bull'
feeling from developing into reckless buying.
This, however, does not mean reaction from
the improvement that has been realized; 1t
means that while the recovery is likely TO
prove permanent yet the speculative spirit
may be expected to be held in a prudent re-
straint for the next few weeks.
Within the last few days there has been a
distinct abatement of the acuteness of the
market feeling on the Cuban situation, and
this has had much to do with the weeks
coyery. In part this has been due to the pa
cifc tone of Spain's complete reply to the rep
resentations made by our government through
Minister Woodford, and equally to the authen-
tic assurances that the administration is much
gratified at the temper and statements of that
document, and finds in it no reason for chang
ing its attitude towards Spain. This more as
sured feeling has also been encouraged by the
constant discovery that the disquieting rumors
that have found such free circulation have,
for the most part, turned out to be inventions
or eXaggerations intended for effect in infam-
ing public opinion or encouraging pessimissc
speculation. This sort Of scare has been much
overdone, and Wall street has had enough
experience In needless depressions for the
benefit of the bear" side to receive such
rumors with a wide margin of discount in the
future.
The people ought to be willing to leave
this entire matter to the administration for
settlement and have faith that the best will
be done for the interests of all concerned
The only course, therefore. is for the people
to pay as little attention as possible to float
ing rumors about what the administration
and the government of Spain are going to
do or not going to do. President Mckinley
can be trusted to do the right thing at the
right time, and if the matter be simply LEFT
to him and his cabinet associates all will
be well. 1t will be a great deal better to
have 1t take that course than to be left
for settlement to the press, politicians
Wall street. These three important repre-
sentative forces can only conjecture and agi-
tate, while the administration is vested with
fuiI power to make settlement of the ar
fair The situation calls for faith, hope and
charity on the part Of the American people.
London quotations for American securities
and the Paris quotations for Spanish gov
ernment 4s are now the best guides to en-
able our people to form an opinion as to the
relations existing between the American and
Spanish governments. During the recent
furry on Wall street vague reports, Span
ish 4 per cent bonds remained steady at
about 60 on the Paris bOurse, when they
might easily have fallen % per cent from
that price if there had been any foundation
whatever for the rumors circulated here. Lon
don's important buying of American secur-
tiles recently is also evidence that they have
not shared in the alarm that a conflict was
imminent between America and Spain The
great financierS of London are in closer
latl0n with the European governments ana
diplomats than are those of this country, and
therefore are not governed much by the
rumors floating in the cities. The reports
that Spain wants to pick a quarrel with this
country are absurd AS a matter of fact
Spans vital interest is to keep out of a war
with America. in relation to war Lord
Saisbury's remarks at the mayors banquet
in London were very significant. He showed
that England's interests not for war
conquests, but market conquests, and that is
equally applicable as applied to Germany and
France, as well as other civilized and go
ahead nations. These results can be achiey-
ed through peace alone, and not by nations
taking each other by the throat-a process
utterly destructive of business interests The
great nations of the world have reached a
point where wise and adrOit diplomacy Is
the best means Of preserving peace. Our
public men in this country have yet to realize
this fact What is needed more than any
thing else is specific education to qualify stu
dents for up-to-date craftsmanship. We have
felt the huTtful effects of rough methods
long enough The last clause of the Vene-
Zuelan message, which produced disaster to
business interests almost as great as war
would have done was an evidence OF this
In some other respects conditions Affecting
the securities market have improved. The
yellow fever has almost died out at all points
which will have the effect Of reviving busi-
ness in localities at which it has been sus-
pended for some weeks and of transferring
to the railroads large quantities of freight
which have been held in quarantine. The
roads connecting with the granger states
withstanding that the farmers are holding
back their grain in the hope of higher prices.
Advices from the West indicate the prospect
of an extraordinary trade next season with
the agricultural states as the farmers will
then be in receipt of the whole proceeds of
their crops. The fall in the price of anthra-
cite coal has been construed as an unfavor-
able factor Wall street and was the cause
of some selling. 1t does not mean, however,
that there has been any failure In the de-
mand for coal, but rather that the producers
have taken a too sanguine view of the pros
pective consumption, and run into AN ex-
cesstve OUTPUT Nor is 1t considered how
much benefit this reduction in the cost of
power brings to the industries and the rail-
roads. The country can never be hurt by
reasonably cheap coal London has been,
during the week, a free buyer of our stocks,
and also a seller; but its purchases are esti-
mated to have exceeded its sales by about 2O,-
COO shares
situation: The forces working for an I'M
provement in the financial situation are SUBJ
stantial. Those in the opposite direction are
mainly sentimental. The basis OF the recent
advance in railroad securities is still in ex-
istence of which the railroad earnings
are the evidence. I venture the prediction
that the coming spring business of this coun-
try will be the largest on record. better
understanding between this government and
that of Spain, which is very perceptible will
make war rumors of materially less impor-
tance hereafter. The decision of the supreme
court in the Alabama railroad case was not
only important as decision, but also IN
showing a more favorable attitude to rail-
roads: the recent decision of the appellate
court in this state. which weakened the Lex
ow attack under the trust law, on the an
thracite coal properties: the London change
of front in becoming more favorable to Amer
ican securities and the continuation of the
large exports especially OF wheat-all these
factors combined furnish strong backing
to the side of confidence. and take the sharp
edge off the bears weapons. which have
lately been irresponsible rumors. The mar
ket has already suffered a very heavy de-
cline, and will soon have fair advance as