The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-06-05
LACK OF LEADERSHIP
PROMINENT REASON FOR THE RE
GENT CHANGE IN WALL
sTREET SENTIMENTS
LITTLE CHECK 70 LIQUIDATION


elders Will Not Re Able to Unload
at q Big Proht-No Apprehension
Need BE Felt as to Railway
Shares, Says Henry CIewa.
NEW YORK, June 4-Henry Clews, In
his weekly stock letter. says: Liquida-
ton has met with little hindrance since
our last weekly advices Various reasons
can be adduced for the change in senti-
ment which has lately come over the
street, not the least among these being
the LOGS of leadership ON the bull side.
The public want a forcible and pronounc-
ed leader in whom they have confidence,
and lacking this they become timid and
inert In times of doubt. Bear attacks
are thus encouraged and values Iecede
with persistence that quickly chills pub
lie interest. 1t so happens that at the
present time the large interests in the
street seem willing for q slow decline;
whether for the purpose of repurchasing
stocks at lower figures Or to prevent the
market becoming too one-sided we can
not say. There Is unquestionably a much
more conservative feeling in banking cir
Giles than existed a month ago, and bank
ers, we are glad to say, now turn their
backs upon projects which would have
been gladly considered month ago. The
enormous transformation of Industrial
enterprises into big combinations.
amounting to $1,000, 000,00 in the month
OF May alone, staggered responsible men,
and they wisely called halt In the fu-
ture these combinations are likely to 20
along on much more conservative and
safer lines, while the seductive schemes
of clever promoters will be scrutinized
more severely.
At present the market Is undoubtedly
depressed by the large amounts of these
new securities which have been offered to
the public and 1t is quite likely that in
siders will not be able to unload as sue
cessfully as they once anticipated A few
or the new concerns are worthy Of pub
lie confidence, but many are not, and the
situation today is much the better for
the: refusal of the public TO take them
The trusts, we think, have come to stay
prosperity is upon US, and seems likely
to remain with us for some time to come;
80 the combines, good and bad, will prob
ably continue successful until the next
period OF overpro6uction and reaction be-
gins. Then the test must come
Meanwhile what of railroad securities
which have hitherto been the most popu-
lar form of investments? Our railroad
systems are we'll developed and well es-
tablished. The era of instability insepara
BILE from the constructive period has
passed away. In future railroad bonds
and stocks are destined tc rank high
among the safest investments In the coun-
try. AS the nation grows traffic must
Increase. Many of the roads are now
capitalized upon reasonable basis The
floating supply of their securities is lin
tied; and, while prices often seem high
according to old standards of value, still
in view of present conditions, such as
large earnings, easy money and a pros
pective continuance Of prosperity, the
conclusion seems inevitable that prices
will go to still higher level as soon as
speculative forces become more favor
able. This week these forces have been
arrayed on the bear side, assisted by ex-
aggerated fears of gold exports, yellow
fever, the Ford bill, etc. None of these
factors, in our opinion, is of any special
Importance. Just now 1t suits the inter
ests of some of the biggest holders to
permit decline. AS soon as these par
ties are satisfied, we shall see a renewal
of the upward movement; but whether
that will be deferred until affurther
shaking out of weak. holders has taken
place or not time only will determine.
Sharp raids are apt to occur at any time
in a market like the present one: but
so long as the present tide of prosperity
continues, no apprehensions need be In
dulged in about the future of the stock
market. +.-.>
There were two adverse factors which
Influenced the market in the, middle of
the week in a downward direction-one
was the case of yellow fever reported in
New Orleans and the other was the ad-
vance in wheat The scare which the
latter produced was on a false theory.
AS matter of fact, the advance in whea t
was not due 20 additional crop dam
age reports on this side, but to such re-
he
therefore, this should really have ha d
the reverse effect on the stock market.
AS for yellow fever, the effect of that
was much exaggerated AS a matter
of fact that disease is only attended with
the danger of spreading in the fall
months and not in the spring season.
The stocks that met with the greatest
disaster were the traction and gas prom
critics, due to exaggerated estimates of
the probable effect of the Ford franchise
Dill. The 1HduStrials also came in for
heavy break, due to the fact that there
has become very limited market now
for their distribution, consequently even
moderate liquidation in them makes In
roaqs In their quoted prices. Railroad
stocks, owing to their better backing and
cheap money. maintained themselves
remarkably well, thus showing that CON
ndence in such securities on the part OF
investors has not been materially weak
ened. The bears doubtless have had
In view recently-considering the close
approximation of sterling exchange 70
the gold shipping point-the sending of
some gold out of the country. even
though 1t was not attended with profit
thinking thereby its moral effect would
De an influence on their side of the mar
ket Yesterdays announcement that
3, O0O0O0 OF the precious metal was tn he
shipped failed to produce the effect az
pected, as the market went decidedly IN
contrary direction, thus showing that
gold exports are not regarded as q So
rious matter after all under present con-
dltions, especially as this country now
stands on the top of the list of nations
In It's gold holdings, the amount Of
winch Is now estimated at about a mn :
O0o0OO. This is the best showing that
this country has ever made and no otbar
has ever equaled It,. We can tharefora
well afford to ship a few millions N n,
rope without any injurious effect as +ba,
will not be missed AS a matter of fact
1t Will be beneficial in an indirect wav ~
this country, as it will In all nrohs hi
ity go to London and increase their cold
supply-which is comparatively small ~
the present time-and thereby incraose
the purchasing power in that quarter for
American securities as we'll az the dts-
position to carry over Americans at low
or rates of interest. The rate charged
there was ~ per cent at the last Set
ting day, which is certainly a prettv