The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-02-07
BULLS OWN THE STREET
UPWARD MOVEMENT CONTINUES IN
NEARLY ALL STOCKS
Healthier and Safer Conditions In
the Speculative Market-RaiI-
ways Reaping the Renefit of the
Natural Expansion of Trade
Henry CIews' Financial Review.

Natural Expansion Of Trade
Henry CIews' Financial Review.
Special to The st. Paul Globe.
NEW YORK, Feb. EN- his weekly
review of the financial situation Henry
Clews says:
In Wall street, affairs will remain under
the control of ''bull'' influences. The move
ment is steady and the tone confident, but
there is no over-sanguine enthusiasm nor
any attempt to force extreme prices by art1-
fetal manipulations Transactions seem to
be well distributed between the larger pro-
fessional operators and an intelligent class
of outsiders, who pretty we'll understand
what they are doing and are not given to
visionary anticipationS. The multitude of
small operators who cut prominent figure
in the summer and early fall months and
by their indiscriminate buying helped to
force up prices to the high figures of Sep
TENDER were pretty we'll cleaned out by the
subsequent reaction, and their place is now
filed by people of larger means and more
moderate ideas; and hence there Is a gen
orally healthier and safer condition of the
speculative interest. One feature of the
weeks business has been some moderate
selling on foreign speculative account,
mainly to realize profits on the recent ad-
vance. Seine consequent yielding in prices,
however, brought out local buying, which
caused quick recovery in prices.
One notable phase of the speculative bust
industrials TO railroad stocks This is the
natural result of the great improvement in
railroad properties within the last half year.
This class of investments indeed are in the
beginnings of a general and permanent i'm
proVement in their status, which is calcu-
lated to give them not only a higher but
also more stable value. The railroads are
reaping the benefit of the great expansion
of trade that is naturally succeeding the
four years of prostration of business. Those
years have brought them economies in man
agement, and have introduced lower range
of prices in all their expenditures, except
for wages. The check upon competition
by the comparative cessation of construc-
ton OF new road, has tended to put a re-
krdint upon the cutting of rates; and he
amalgamatlon of a number of competing
lines into large systems has had the same
effect, whilst II has materially helped to
economist the expenses OF management. The
several notable examples, within the last
twelve months. of railroads exchanging
their outstanding bonds for new CONSOLE
dated issues bearing 31a to per cent in
terest have set up precedent which is
likely to be very generally followed by all
companies In fair credit; and 1t is to be
noted that the general fall in the rate of
interest has made these operations the more
easy and at the same time gives an in
creased value to dividend-payng stocks. All
this has been foreSeen by shrewd observers
but it only now is becoming apparent to
the common eye; and its effect is to create
q higher appreciation of this class of Sc
CuTlIleS- HOW mucn higher these tendencies
may be expected to carry prices, / do not
pretend to say; but it is very safe to predict
that, from this time forward railroad stocks
will have higher standing among investors
and that their future market value VIII
stand higher than the standard of past
years. This view is one of the causes con-
tr1butlng to the present upward tendency
OF prices, and its effect is far from having
yet been exhausted.
1t is healthy symptom that intrinsic
considerations like the above are now the
main factors affecting the market Cuban
aha1rs are not mentioned. The Chinese
situation, though very sentitive one with
certain countries holding our securities oc-
cupfes no attention. The position of the
money question in congress is ignored; and
the Teller resolution has been viewed more
as matter of politics than of finance; all
OF which shows the deep interest now taken
In affairs connected with the railroads.
Among the railroad stocks that are now
attracting special attention and strengthen
ing the tone of the market are Chicago &
Rock Island, st. Paul, New York Central,
Union Pacific and Great Northern preferred
each of which is developing strong "bull''
features In Rock Island, interest is re-
Vived by the expectation that its January
net earnings will show as large a reIa-
tive increase as its gross. New York Cen
tral is stronger on the assumption that its
absorption of the Lake Shore road has now
become virtual certainty. and that the
contemplated deal with Michigan Central
IS sure OF accomplishment 1t is understood
that the Vanderbilt interest have recently
taken up about 65, 000 shares. In Union Pa
clhc, there has been free selling of the pre-
ferred shares, by those who have received
them in the conversion of the money re-
ceipts under the syndicate arrangements;