The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-05-29
WEEK OF YIELDING.
STOCK MARKET LOWER In PRICES,
TONE AND EXTENT OF
OPERATIONS
RESULTS NOT UNEXPECTED
Advanced, and I'm Such Cases,
Says Henry Clews, a Reaction Is
the Natural Reconsideration Has
Many Elements of Strength
Comparative Figures.

NEW YORK, May 2S.-Henry Clews'
weekly review of the stock market says:
The past weeks stock market has been
distinctly one of yielding-not only in
prices, but also in spirit, tone and the
attitude of the holders and the
volume of transactions. For some
time past 1t has not been diff
cult to detect evidences of an
undercurrent in that direction. Not 80
much that there has been an absence of
sound bull elements in the situation, nor
that the market has lacked good hackers.
as because the upward movement seems
TO nave run to state of tension too high
to be maintained indefinitely, and espe-
cially In the face of worrying uncertain
ties Plainly, prices had been carried to
climax which could not apparently de-
Velop further in the direction of advance:
and, usually when market reaches that
position, although there may be a good
Zeal of struggling to keep up appearances
and encourage confidence, yet in the long
run 1t Is found that the only possible
movement is towards reaction.
The great movement in securities that
set in at the opening of the year has
since been charged with burdens which
were not anticipated in it's earlier
stages. No sooner had an unprecedented
investing and speculative demand carried
UP prices to the highest level ever
known, than there unexpectedly appeared
movement in the reconstruction of cor
porate capital which has transformed a
very large part of our Industrial system
This financial whirlwind has thrown
speculative movements into confusion
and has overtaxed the financial re-
sources that are ordinarily available for
stock exchange operations Not only is
the market overloaded with such Sc
curities awaiting distribution, but the
new supply includes a large element of
issues whose quality is but partially I'M
derstood and which must pass through
a stage of trial before they can reach
their final resting place. The more this
situation comes to be appreciated, the
more disposition there is to watch and
hesitate; and such condition of things
always sooner or later develops a dis
position to realize in numerous instances
The foregoing factors appear to have
good deal to do with the reactionary
movement now apparent in the stock
market. AT the same time, the drift to-
wards departure from our late extra
ordinary creditor foreign balances begins
to attract more attention. There is no
expectation of anything like a reversal of
the late excess of exports over imports;
on the contrary, 1t appears likely that
we may maintain permanently a better
balance between our inward and out
ward trade than in former normal times;
but there can be no doubt that the ex-
traord1nary trade balance of the last. two
years has been very influential cause Of
the unprecedented rise in securities since
the opening of this year: and, in proper
ton as that cause loses its inf1uence-all
other things being equal-some yielding
In prices might be expected to ensue
A comparison of prices will show the
extent to which this process of decline
has already gone.
Selecting list of thirty-three active
railway and industrial shares 1T will be
seen that on Wednesday last each one
Of these stocks was below the highest
prices reached within the last twenty
week; the average rate of decline being
105 points. Extending the comparison
to the highest prices of 1898, it is found
that the highest figures of this year aver
age 1918 points above the highest of last
year; whilst the quotations of May "a
average 2.7 points above the top figures
of 1893. Taking the lowest prices of the
same stocks in 1898, we find they average
267 points below the, highest quotations
of Wednesday last These results may
be thus summarizes: ,qaefltaf fpe
Average highest price SO stocks since
., Average YER highest price SO stocks on May
sS2.2S 9,e->- -O''
Average lowest price SO stocks in 1898,
$3.50.
1t thus appears that prices have fallen
fraction over ten points from the high
est values of this year, but that they are
still 2.72 points above the highest figures
reached during the active speculation of
last year Whether Wall street will
conclude that the minimum prices of
1899 should exceed the maximum for
1893, am not prepared to predict; neith-
er am l prepared to recommend our
friends to act on such a doubtful as
sumption.
AT the moment, railroad stocks are I'M
favorably affected by the wheat pros
poets. Winter wheat has now to add
worms to the misfortunes, and careful
estfmators are ranging their estimates
around 260,000,000 to 27O,00O,00O for the sea-
sons output. So far there is no expec-
tation that the spring crop will exceed
that of 1898; opinion rather inclines to-
wards a decrease. From the present
outlook, we may calculate upon a proba-
BILE reduction of the wheat yield of ITO
to 12O millions of bushels, compared with
last year.