The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-05-22
TEST OF STRENGTH
WAS PRECIPITATED UPON WALL
STREET BY THE DEATH OF
ROSWELL p, FLOWER
RAILWAY LIST IN EVIDENCE

Attention for the Time Divided
From the New Industrial Special
Line OF Securities-NaturaI De-
crease in Trade BaIance-steady
Recovery I'm Tone During Week.
| NEW YORK, May N.-Henry Clews
weekly review of the New York stock
market says: During the past week, the
stock market has undergone another
sharp test of Its strength. 1t had scarce
ly ceased to feel the effect of an earlier
break in the Flower properties when the
same Identical interests sustained a sec.
ond blow from the sudden decease Of Mr.
| Flower himself. The event was the more
startling because, although not in strong
health, yet his decease had not been reck-
oned upon as among the probabilities OF
the near future. The occurrence was the
more calculated to excite apprehension
because the group OF stocks under the
control of this special interest was not
only very large in It's aggregate amount
but had been advanced to extraordinary
prices; and, though the properties were
presumed to be in a financially sound
! position, yet there were wide differences
of opinion as to whether their high quo
tations could be safely regarded as per-
manent. Under these circumstances the
market stood exposed to severe reaction
under this shock. The first effect of the
intelligence of Mr.. Flowers decease was
drop ranging from II to IS points upon
| the securities directly affected, due main
ly to heavy sales by alarmed and SHINY
protected holders. Within an hour, how
ever, these panicky first results subsidized.
1t became apparent that the specialties
were under the shield of some of the
strongest protectors in speculative cir
cies; and the outgiving that a backing of
500 600 was pledged to support the
Flower interests put a stop to selling, and
produced quick recovery of one-half of
the previous decline In sympathy with
the excitement, there was a decline of
l to points on the general list, which,
however, proved comparatively transient
Mondays market opened with more
settled feeling, and throughout the past
week there has been a steady recovery
of tone. There has been an abatement
Of attention to this special group of
stocks; but they are no longer a source
OF misgiving and uncertainty to the gen
eral list. The revelation that they are
understood to be under the protection of
men of virtually unlimited resource has
removed an element Of distruSt which
has been holding the market at large
in suspense for some time past and this
| assurance has infused healthier feel
ing into speculative operations and streng-
thened confidence among investors.
One effect of this episode has been to
partially divert attention from the in
duStrial stocks at large for the time be-
Ing and to increase the interest in the
railroad list. This diversion has also been
helped by the f1uctuating prospects of the
+ crops incidental to this season of the year.
Recently, the special excitement in the
| industrial fro ION ~ ho1
caused some neglect of the older stocks,
If not also some decline in price from
sheer inattention to them. The Granger
stocks have been neglected in consequence
of the uncertainty connected with the
prospects of the wheat crop; the latest
reports, however, are more definite and
/ reveal better outlook than has been
hoped for. This fact, together with the
abatement of disturbing misgivings re-
| specting the group of stocks above refer
red to, afford the basis for, a more con-
| fident feeling, which has shown steady
growth through the week.
The position of the money market is
also helping factor. The Spanish In
! demnity payment is now out of the. way,
and has left behind 1t an unexpected In
crease of 81, 100000 in the surplus reserves
of the city banks. There are no impend-
Ing important settlements connected with
railroad deals such as have caused an I'M
even movement in the loan market for the
| last three months; and consequently there
is now reasonable prospect Of continu-
Gus ease in money until the settling I'm
OF the crop movement three months
hence.
1t seems probable that, from this time
forward, one important bull element
will bec< he less conspicuous than 1t has
been for many months past. 1t was not
to be expected that the extraordinary ex-
ho
maintained Indefinitely. 1t has been due
to exceptional temporary conditions, both
domestic and foreign, which are begin
ming to gradually disappear. The extra
ordinary business prosperity we are now
experiencing has increased the demand
for both domestic and imported products:
we therefore find the April returns of
| foreign trade exhibiting decrease of Sill
ZOO In exports and an increase Of So
O,OOO in imports; the result being that
the balance for that month is 500 5000, 900
less in our favor than in the same month
OF 1888 The totals for the two months
March and April, better express the ex-
tent of this reaction For those two
months of last year, the excess of ex-
ports was 1914, 400, 900, while for March and
April, 1899, the excess was only $54, 800 900:
which shows a falling off in the creditor
balance of $39, 900 for the two months,
or at the rate of $3S, 000O 600 per year.
in view of the favorable crop prospects
In other countries, Europe may want less
grain from us than in either of the past
two years, and 1t now looks as though
we may have smaller surplus for ex-
port than them and If, under these
changed conditions, the price of cereals
should decline, a decrease in the value of
our grain exports must be expected It
also remains to be seen how far the cur
rent rise in the prices of manufacturers
and of iron and steel may effect our
exports of non-agricultural products At
the same time, for so long as trade con-
tinues as prosperous as 1t now Is we
must expect increased importations
LONDON STOCK REVIEW-London,
May 21.-Business on the stock exchange
last week was better than usual on the
eve Of the holidays All gilt-edged Sc
curities were decidedly strong and for
eigners were well supported from abroad
The feature of the latter was the rise of
points in Spanish As, to IS, on repur-
chases by Paris bears, prompted by the
decree that no more sealed bonds are to
be issued. Good buying sent Americans
upward. Central Pacific shares rose 81
per cent; New York Central, ~; Atchison
preferred III; Union Pacific, 15s; Erie pre-
ferred rs. Grand Trunks rose rapidly.
Grand Trunk guaranteed closed at SO;
Grand Trunk first preferred, 80A Grand
Trunk second preferred g. and Grand
Trunk third preferred at g. Money was
in good supply at from / to IL per cent