The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-10
NEW YEAR INVESTMENTS NEVER
EXCEEDED EXCEPT IN ONE
YEAR,
YET THE MARKET was DULL.
HEAVY BUYING IN DECEMBER DIS
COUNTS THE EFFECT OF JAN
UARY PURCHASES.
RAILROAD BUSINESS INCREASES
Business Men Generally Much More
Conndent-Henry CIews' Weekly
Review.
Special to the Globe.


NEW YORK, Jan. SIN his weekly
review of the financial situation Henry
CleWs says:
Ordinarily the opening of the year is at
tended with buoyancy in the stock market.
owing to the reinvestment of interest and
dividends then distributed. or to their employ-
ment in speculative purchases. This year
the amount Of those disbursements in January
is estimated to be $79, 200, COO which is the
highest sum ever reached excent in 1909
When the total was about 81 600 600 higher
Yet the usual rise in prices has not been
prompt In appearing, and during the first half
Oh the week the market was dull and prices
somewhat unsettled. This lack of response
10 the general expectation seems to have risen
from the tact that the buying during the
last half OF December was largely in antici-
patton OF the expected January rise and that
consequently there has been some tirnid sell
ing because this buying was DELAYED An
other EXPLANATION may be found in the fact
tnat the investment demand has SO far run
almost entirely upon bonds, with a conse-
quent large advance in their market value
IL ls TO be kept in mind, however. that the
erect OF these disbursements has not vet heen
FULLY felt, DIS the payments are usually as
trlDuted over the whole month and the rise
IN the prices OF bonds is likely judging from
common experience, to promote a suhseonant
advance In stocks in order to eouaIize va1une
between the two. The condition of the Lani1
reserves has also had some influence in BRO
etnnI ene temporarily depressed tone of the
etock market The surplus on Friday last
was only $50, 500, 600, which is the lowest figure
since s6n 1893 the sum for the frst week of
1897 having been $33 200 00O: of 1905 s1o eoo "
of 1898. IS, 100000 '0'''''' anu
inns comparatively low condition of the re-
Seo s. Ior inns season of the year. is largely
que TO the settlements connected with Tho
Union racine debt and may be expected to
gTaouaily disappear within COMPARATIVELY
snort period. The last payment of the COM
Illttee on these settlements, amounting in
round figures to IS coo GOO was mo5
uesuay last. and the amount of government
money held oy the New York banks on This
account is estimated to be from S16 On0 non 70
OOO, which involves a reduction in ~
Surplus Plus reserves to the extent of % per cent
ol tnat Item. There are also some other i'm.
Porldtnt unusual clements in the hanlin,
situation which tend to stiffen tba r,nIiis
maket. 1t is estimated that the amomnt ~
iiorelgn exchange held back for temporarv
The amount now of f feacnes about $50 100000
- vi On open accounts but allowed to resi-
II, IN LONDON and Berlin is supposed bv those
$$iV,VOo coo' and besides this the bankers and
pahhs OF this city are under advances ~
Europe, against bond collaterals to suno
tcSa HdS mol not less than slO,otoOOO Putting
SNIAstheT these three items they show thai
ese ~oo d n Is now virtually lending some
@4V,VCO,OvO to the European money Conn.,
r maicn' out Tor these deferments of settle,
ments, would have brought us an ecne1
amount of gold. So long as these aooe equaI
IN Imam outstanding 1t is not to be exnected
in "t NV we , snail soon witness any notable ease
or the loan market is, however stra psitioi i
n ne,,n1y one, Tor these advances to foreian
be tra ins represent resource which can
W transferred Tor home use at tbe con
venienc OF our local demand For Az 1on
t te'hei however this situation has tendenn,,
~ ~ noia IN check large operations in snecnl.
Al, nevertheless, during the last two do,, =,
Tue week; there was a distinct improve yn 0t
iateiyy eG bsant Transactions. Some q the
b iy apseit larger operators became actiuo
buyers, and the Increased orders to tb6 doSye
thtisSIon houses showed that outs:d re Wara
66e esd TO employ their interest and Giyio
I ITa Iecelpts in purchases for higher nrioo.
hoW far these operations NAV RIM - iGes'
th haths 10 De seen. 1t is certain bowever
e euar the general situation is virtualIy in
values for stocks. -enei range Oh
dime Inc railroads keep up their late extraor-
gross ea ,a,e OF increase in business The
S aoss earnings or eighty-four roads for The
ooiUhu week OF December show an average
gs1n over We last year of IL per cent EST
indicate an ne movement Of the wheat crop
n r'hio OF farmers ON the list of January
WI Wnich remains as a future con :ributicn +,
probahiiitv ess go OF the roads. There is every
p,0pduilty tnat, when the spring trade SITS
~ mere VIII be an unprecedented amount
Oh o., merchandise freight going to the interior
mus II seems reasonable to assume that ~
great increase of earnings during the 1asI
In I bnsinss Will be continued through 1873
much more confident than # has baane 80
any time since the recovery of last yea CT
In. we have had several m nths' exnerience
o. thls recuperation and are therefore in a
IaT position to judge Of it's duality and fur
tner development; and the opinion seems tn
NC un!loIh that 1t rests upon a sound and
peIihanent OASIS and may Ibe expected tn
eApaho into an era Of great national mos
PeIny IN mercantile circles, the feeline is
conservative, but full of confidence Credit
70 III wholesome condition, as is evident
from from the remarkable fact that the tess af.
loruea by the settlements made at the close
OF Ihe year has not developed one faj;ure
at TINS center of Importance enough to at.
tfact attention, circumstance which l.
Almost without precedent.
inese and other important factors which
Mgnt De cited are plenty in favor of the
investment markets. On the other hand ~
Is scarcely possible to specify any no ew. rthy
1 LIS or influences of an opposite t-ndency
Inc pear operators have about exhausted
t 1I STOCK or pretenses fer selling, and are
nhely 10 cooperate in es ablislDg a higher
sac oI prices upon which they may play
tneIr game with greater safety The arrival
IN LONDON OF prominent New York fran-
cler, whose potency in the securities market
their snort commitments on a strictly
conservative scale; as any day announce
ments may arrive which would give new
stimulus tc the market Striking a balance
between the two sides OF the market 7 cam
not put regard the preponderance as largely
In favor of the "bull'' interest That nav
not mean any immediate extraordinary ac-
tlVlty or great early advance In prices: but
70 my view. 1t may be safely regarded as
1oTeshadcWing steady howard tendency OF
prices from this time forward for the next