The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-31

There Is n Speculative FURRY
Henry CIews Sees No Reason for
AIarrr-The Present Outlook Is
for a Long Period of Commercial
Prosperity.
NEW YORK. July SO.-Henry CIews'
weekly stock letter says: The stock mar
ket is apparently taking it's usual sum
mer rest, and more of the prominent
leaders are absent on vacations than is
general, presumably enjoying the profits
of the last bull campaign and waiting
further developments before inaugurating
another What the future of the market
viii be during the next six weeks is not
easy to determine. Generally speaking,
the conditions are highly favorable to an
advance, but any forward movement is
likely to be held more or less in check by
approximations concerning the money
market Our bank reserves are low, and
an active demand for money is expected
very soon to meet crop and trade require
ments, so that borrowers generally seem
unable to forecast the future with real
confidence. A little timidity on this score
Will do no harm, for the creation of
bull movement at this time would prob
ably precipitate an undesirable twist in
the money market. Should speculation,
however, be kept within moderate bounds
We see no reason for alarm about the
money market. Firmer rates are both
probable and desirable, being a natural
sequence of prosperous times. A good de-
mand is likely for crop purposes, but it
should be remembered that every year
the West becomes less dependent upon
the East on this account. A brisk de-
mand for commercial paper seems proba-
bic, owing to trade activity, but here, too,
there are offsets from the facts that mer-
chants have better resources than ordi-
narily, and the big trusts which generally
carry heavy cash balances will supplant
large quantities of commercial paper that
formerly came upon the market. Added
to these offsets are the facts that very
considerable amounts of time loans will
mature in August and September, and
any sharp rise in money rates would
probably hasten gold imports from Eu-
rope. Nevertheless, the money market
will not be bull factor for some time to
come.
Indications point to a scarcity Of paper
currency during the autumn months AS
currency reform is still a question of the
future, il is imperative that the treasury
department take some steps for relief
One of the best and most practicable
methods would be the issue of gold GER
tftlcates. Secretary Gage cannot afford
to be prescriptions about the limits of
his authority. When Secretary Carlisle
doubted his right to issue gold certifi-
Gates the reserve was below the $1OO, OOO,-
COO limit Now the gold reserve is at
about its maximum, over $246 coo, 000 and
increasing daily; SO that what might
have been prudent in the one case be-
comes injurious tmidity in the other. Mr.
Gage, however, is a practical financier of
high reputation. and it is hardly likely
that he will permit minor technicaiities
to prevent his making our present fnan-
cial system work as well as possible
Some relief may be afforded by an in
crease of bank circulation, but this is
problematical while present restrictions
remain.
The general business situation is highly
promising. Nearly all the principal in
dustries are actively employed, and the
iron trade is experiencing boom beyond
all precedent. An extraordinary fact is
the comparative absence of speculation
Our mills are crowded with orders for
goods that are wanted for actual con-
sumption, and for once in history at least
the speculator has failed to anticipate
future wants. Another striking feature
is the uniform belief that we are to have
one or two years of prosperity like the
present, with little interruption The
world, and especially the United States.
Is recovering several years of retarded
growth with a rush. In about a wear
however, production will have partially
caught up with consumption, and we
may then expect some abatement of ac-
tivity. The numerous advances in wages
suffice to carry us along for a consider
able period. Crop prospects are not I'M
favorable. There is every likelihood of
our having an average amount of wheat
for home and foreign consumption with
prospects of a good demand on the latter
account Corn promises we'll. Railroad
earnings show very handsome gains The
grangers are carrying enormous quanti-
ties Of grain, and the great revival in in
dustrial and commercial activity mate
rally swells their revenue The politf-
cal future contains many perplexing
questions, but they are not of a sort that
will seriously affect business. The next
session of congress will be viewed with
much less concern than its predecessors;
not the least because both parties will
avoid giving offense previous to a presi-
Dental election
What activity there was in the market
during the week was principally in the
Southwestern properties, most Of which
scored considerable advance, due large
ly to the fact that the corn crop bids fair
to be the largest on record besides which
most Of these stocks have not had an
advance in keeping with the prominent
dividend payers. Other than this the
movement of the general market was
narrow and reactonary. The higher rates
for money and the absenteeism of most
of the prominent operators were the prin-
cipal reasons for the dullness prevailing.
The group of Industrial properties in most
instances was not only very weak but
many of them scored conspicuously lower
quotations Sugar and Tobacco. however.
took contrary course and were quite ac-