The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-01-02
EXTRAORDINARY RECOVERY IN
BUSINESS SHOWN IN PAST
TWELVE MONTHS.
LIGHT in 1.-THE FAR EAST.
EVENTS EoREsHADow THE OPEN
ING OF CHINA TO GENERAL
- rRADE.
RAILROAD EARNINGS INCREASE.
Increase In i Export Trade-Better
Outlook for 1895 Henry
lCIeNs' Review.

NEW YORK, Jan. I'm his general
review OF the financial situation for the
year. Henry Clews says:
The year that closes with this issue Of our
weekly letter has been. in some respects,
clal and financial intrests. 1t followed three
successive years Of almost unprecedented de-
preston and disturbance of confidence con-
sequent upon the imperilled position of our
monetary basis. The national election had
defeated the silver faction. but by a majority
winch did not suffice to immediately restore
confidence. With the presidents declarations
in favor of sound money wave of revived
commence swept over the whole country,
and. from midsummer to the end of the year.
there has been one continuous revival Of
business Providence. too has been pro-
p1tious to our welfare. At time when the
1allure OF the cereal crops was general
throughout Europe our harvest was abundant
and we have been able to export at high
prices unprecedented quantities of wheat and
corn. At the beginning of the revival, i'm
portant sources of2Gonsumption were blocked
by large accumulations of unmarketed prod
ucts, most OF which have since been disposed
Oh at some recovery in prices, thereby pre-
pairing the way for a profitable increase of
production during the coming year.
Simultaneously with this recovery in the
nome markets we have been favored with
an extraordinary increase in our export trade,
the shipments of merchandise for the first
eleven months of the year having amounted
70 S9I4 Co., 600, against $SS8, 600 900 in 1896,
$aS2 goo 900 in 1S? s74o 200 900 in 1894 and $7S2
port trade has been favorable to the foreign
81 movement, our net exports of the metal
during the eleven months having been but
S6NO,eCO These figures, however, imperfecGy
represent the actual course of the foreign
trade balance. for we have bought from other
countries certainly not less than $75, 600, 900
tmarket value) of our securities and have at
times been lenders to Europe to the extent
OF $50 ,OOO,G0 to $40 1000, COO. as a means of
preventing importations Of gold when we had
no use for it. and when London, Berlin and
operations became needful will appear from
the fact that. for the eleven months our
exports OF merchandise and silver bullion ex-
ceeded our imports by 1925, 900 900.
1t Is not to be inferred that the large in
crease In our exports is mainly the effect Of
the unusual shipments of breadstuffs There
has also been an extraordinary addition to our
exports OF manufactures. Under the pressure
OF recent hard times, our industries have been
enabled to SO far reduce the costs of produc-
tlon-Wlthout at the same time putting down
wages-that our ability to compete with other
countries has opened to us much increased
area of foreign markets. Indeed the signs of
the times have afforded clear indications that
at last We have attained an economy in pro-
duction which wifi open new markets to us
corresponding to the rapid increase in our
industrial plant and the rising ratio of the
population which much be dependent on man
ufactures. We may reasonably expect that
this expansion of the exports of manufactures
Will prove to be but in It's beginning. and
that this branch of trade will next year ex-
coed that of 1897. Just as the year closes
events nave happened In Eastern Asia which
foreshadow the early opening of the vast
Empire Of China to the marketing of manu-
featured products. To this country. impelled
towards manufacturing by new natural drift
OF its rapidly increasing population. this is a
most welcome foreshadowing of an expansion
of our trading relations .. with the worlds
greatest empire. It is .toH be hoped that our
goVernIn ent WHIP fexef6fse theHutfflost vigilance
in guarding iiAneffean interests pending the
Struggle AHleng the European powers to gain
control OF the bests positions for forwarding
their aggressive purposes. We desire for
eign territory; hut we cannot afford that mill
tary governments shall be permitted to In
wade our established treaty rights, or divide
up China at their. pleasure, or set up q selfish
kets of the empire. This is a matter upon
which the attitude of the United States should
be well understood and openly declared with
out delay.
The transportation of our large crops and
the increased movement in merchandise dur
brought large benefits to the railroad interest.
During the first eleven months of the year
124 roads show increase in gross earn
ing from S453 GOO 900 in 1896 to $4S1 600 600 the
past year, most of the gain having occurred
within the second half OF the latter period
The net earnings exhibit still better ratio
of improvement. For the ten months ending
$1S7 SEC, 0G0 compared with S16S, 100 coo in 1896,
showing an increase of Hip per cent. The
effect of this sudden recovery, together with
the conclusive evidence that the general trade
of the country was undergoing a thorough re-
cuperation became apparent In an active
speculation in securities the effect of which
upon prices is shownsfn the following compart-
son of the quotations for leading stocks on the
18TH of June with the highest figures reached
during the elimination of the rise: