The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-05

NEW YORK, July An his weekly
review of the financial situation Henry
Clews says:
The past week in the market for securities
has exhibited, the whole, reactionary
movement in prices. After steady upward
drift, extending over some six weeks and
showing a handsome range of profits, this is
no more than might be expected, and for
various reasons, it portends advantage Tor
the future course of the market.
Strong as the tone of values has been and
still is, yet the market has lacked breadth
and activity, the daily transactions having
averaged only about 25O00O shares. AS indi-
Gated in our advces Of last week, this is in
considerable measure due to a rush OF
'outsde" buying having run away with the
market and carried up prices, while the
class of large local operators have been left
in the lurch and have refused to come in at
the higher range of values In the same way
London, which is raising It's estimate of our
securities, has been left in the cold by the
late rise and hesitates to come in until pur-
chases can be made at some concession.
The houses who have it in their power to
largely regulate the course of business on
the exchange have not liked this situation.
A position which keeps out Of the market the
class Of operators who possess the spirit, the
means, the tactical skill and the alliances
with large capitalistic forces, is clearly not
one to make the best Of such recuperative
influences as are now coming into active
operation in Wall street. When these oper-
ators stand still, the market soon stagnates
without comforting any benefit.
The present position of this influential class
of operators appears to be about this: They
are fully awake to the fact that great re-
covery has come over the business of the
country and that all the influences affecting
the value of investments are conspiring to
produce very important revival Of bust
ness on the stock exchange They conStrue
the active investment demand for bonds and
dividendpayng stocks as the signs Of
coming boom, and they are therefore ready to
take their nart in the coming revival But
they have comparatively few stocks, and it
therefore suits their tactics at the moment to
discourage the rising tendency in prices and
leave the narrow outside market to the fate
that must overtake it in the absence of their
influential support. AS already intimated
London appears to- be in the same position
and disposed to follow a like waiting policy.
What concession in prices it may take to
satisfy these important would-be buyers it
is not easy to say. Probably some might be
willing to supply their wants at near cur
rent prices, but that might not be easily done
for important purchases would undoubtedly
start up prices again. Much must depend
upon the course of events. There is no say
ing what may be the effect of the completion
of the tariff in starting up industrial activity
in the many quarters in which production is
now being held in suspense. 1t is also to
be considered that the crops are In a position
which permits of fine weather giving them
an impetus beyond what is now calculated
upon. In any event, there is every prob
ability OF business prospects exhibiting a
u.
This situation may at least be expected to
keep the market strong for some time to
come-during which these intending buyers
may gradually get some stocks-but IL does
not seem likely that it will permit any ap-
preciable fall in prices; the great business
factors OF the hour are too decidedly bullish
to admit of that-except in the event of soma
unforeseen adverse circumstance; which is
about the only chance these belated buyers
have left to count upon.
Upon this series of uncertainties depends
course stock dnriD tho
summer months. really stagnant market
seems improbable. There are too MANY good
possibilities within sight for that to happen
All are reckoning upon it time for get
ting into the market. Few regard the rise
OF the past month being sufficient to dis
count the hopeful future that now faces the
country. Operators, therefore, are likely to
keep their accounts open with the commission
houses and stand ready to buy if circum-
stances should favar. That may not neces-
sarlly mean really active summer market
but 1t does mean at least steady and safe
one, and strongly sutg sts boom in the carly
fall.
The general business outlook grows increas-
ingly hopeful. Many manufacturers are al
ready sufficiently sat SIZED with the probable
details. of the new tariff to begin operations
upon extended scale. and in the larger in
dustries the resumption of full work is be-
coming comparatively genera. In city mer-
camille circles also a marked Improvement of
tone begins to appear. 1t comes too late 20
materially increase the volume of the sum.
mer business. but it is having wholesome
effect upon the confidence and expectat ons
of distributors in respec; to the fall trade.
The reports and orders sent by commercial
travellers show such an improvement that
they are receiving instructions to prolong
their stay in the interior; al of which goes
to strengthen mercantile expectations as TO
the volume of trade during the second half
of the year. Ginning with this improvement
comes the generally hopeful character of the
government crop reports, which are even eX-
ceeded by the sangune tenor Of the advices
from railroad officials and men Of business
on tours of inspection in the West and South
Men of business are turning their attention
from the still fretful agitation of politics. in
the conviction that two years remain to them
before there can be any absorption of public
attention by fractional agitators, and with the
hope that during that interval public opinion
will frown down violent issues and support
only safe and wholesome policies The re-
vival of business Will powerfully contribute
towards that tendency,
During the week there has been a marked
movement towards, in the foreign ex-
changes. The large remittances required for
cash settlements for anticipatory importations
of sugar wool, hides, etc, and for the pay
ment of July interest our securities he'd
abroad as well as on account Of travellers
credits, are now about over, and rates for
foreign bills have consequently fallen below
the gold expert point, so that no shipments
of the metal have been made during the week.
This has had an encouraging effect upon Wall
street; for although, with our present stocks
of god we could afford to part with more il
necessary, yet we are likely to need a good
stock of money in the banks, as the proba-
bilities point to important transfers. of cur
rency to the interior after this month in con-
nection with liberal crop movement at rel
atvely good prices In view of the prospective
Introduction Of measures of currency re-
form into congress, 1t may be of no small
Importance to their success that we should
have ample stocks Of gold in the banks and in
the treasury; thus whatever tends to augment