The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-12-11
PROBLEM OF FUNDS.
1T is STILL THE DOMINANT FACTOR
IN THE MONEY MAR
KET
RESTRAINT HAS ADVANTAGES
1t COOls the ArdOr of Over Enthusi-
astic Bulls, Says Henry Clews,
and Paves the Way for a More
Substantial Movement Later On
Market Leaders Are Still Commit
ted to the Bull Side.


NEW YORK, Dec. 10.-Henry Clews
weekly stock letter says:
Some disappointment is expressed at the
hardness which the stock market shows
in responding to the many existing favor
able conditions. With unusual prosperity
in all parts of the country it has been
reasonably and generally supposed that
higher prices would prevail during the
fall and early winter months. So far
these expectations have not been realized,
chiefly because of the high rates and linn
tied supply of money. For ordinary busi-
ness purposes there appears to be no
serious lack of funds at good yet not ex-
orbitant rates; while, the moment spec
ulative demands assert themselves with
any force, stringency Is at once prev
alent. This restraint has its advan-
tages, in that it cools the ardor of over
enthusiastic or indiscreet bulls, and paves
the way for a more substantial movement
later on. 1t is far better that the market
should have ample season in which to be-
come we'll established on the new level,
than to permit runaway speculation
which might easily invite severe reactions
and general destruction of confidence
There are indications that this view is
taken by some of the influential interests
in the Street." who, while committed to
bullish views in the long run, are not
at this time willing to lend their powerful
aid to any upward movement.
An even more important factor in the
situation than the disposition of big oper-
ators, one in fact which largely controls
them, is the money market. High rates
for money do not always prevent a bull
movement; but it is quite certain that
just now any such campaign would be
quickly brought to grief by. prohibitive
rates. The bank reserves are much be-
low the usual average Of the season.
Trade activity retards the return of funds
from the interior The treasury continues
to absorb money, and the offer to buy
bonds affords only partial relief, as hold
ers have other uses for them than the
interest they pay. In short, there is a
large and perfectly healthy demand for
money, which cannot freely be met be-
cause of a cumbersome and antiuuated
currency system which prevents expan-
sion or contraction according to the needs
OF the moment. January disbursements
will amount to probably $4,000 ,OOO prep
arations for which will keep money more
or less active meanwhile. Still another
factor of Importance must be reckoned
with, and that is foreign exchange. Ster-
ling has advanced owing to the high rates
in London, the Bank of England rate of
discount being at its highest point since
mic
this stringency is due to weakness or
rear, but rather to a prudent determina-
ton of the Bank Of England to protect its
gold reserve and prevent demands from
the Argentine or elsewhere. Trade activ-
1ty is almost worldwide, so the demand
for money on this account is not limited
to the United States; and with a partial
cessa ton of the gold supply through the
Transvaal war it is not surprising that
London should take means for self-pro-
tectlon. Gold exports from the United
states may happen, but do not seem prob
aole' Tor money rates would quickly har-
oeIi In response to any such movement
AS said above the local market is NOT
likely to get any relief through tho
medium OF foreign exchange for some
tllne 10 come. There are fair offerings of
Oi1s against rem1ttances and manufac-
'0i1ils exports, While the supply of grain
ana cotton bills is much below the aver
age. conditions are somewhat strained in
Berlin, and pinch there or in T,ondor
"0uIo or course be to some exter+ va
Elected here.
me PRESIDENTS message has won more
approval than usual. His clear utteranoo
LUZ the gold standard, his prudent va+
progressive attitude on foreign affairs
ana his advice to congress to give tho
monopohstc trusts careful attention -+bo
three most important topics +reo+ad
without partisan touch-au show +ba+
ne is fulIy entitled to the confidence If
'iio peopie' Inc present session of con-
sIess mas much important work before
It, Forelgn questions will occupy mnch
OF Its time, and domestic problems will,
require some serious thought AS die
turoer OF business this congress, however
promises to be less serious than 1Jsl1aI
~ me contrary, II is probable that one
" Us 1Irst acts VIII be to put the country
squarely on the gold standard and +ako
the nrst step towards securing a scien-
tlnc currency system. When this is ac-
compHshed, there will be renewed canse
1or conhcence regarding the future Tho
passage of such a bill will certainly he
favorable to all business interests = I'm
I'll easier rates for money are in sight
however, buying of securities should be
conducted with extra caution.
The presidents message is a velI-writ-
ten and conservative document. and
should be satisfactory to the great mass
OF the American people. All the ones
tons to which he refers are presented
IN full and comprehensive manner. Tho
most important of these is the one rela-
tive to the gold standard and upon which
ne declares himself in words so clear
and expressive as to leave, no room for
misunders landing.
Inc president has now fulfilled the cleo
tlon pledges and conformed to every rem
| dition of the policy to which he commit
ted himself when nominated for the 20
s1t1on Which he has thus far so hon
orably and faithfully filled One of his
most important implied promises in the
course of the policy which he prescribed
Tor himself, more expressively after his
election, was the prosperity of the coun-
try. This intention has been realized all
most beyond the dreams of avarice
when We consider the frightful depres
sion which brought the country almost
| to the verge OF bankruptcy during the
| two years preceding his advent to the
| presidential chair.
President Mckinley promised to main
tain the gold standard He has done so
| despite the most vigorous opposition:
ALSO to adjust the tariff to the require
ments of our industries and to ston the
outflow OF gold from the treasury bring
ing the receipts and expenditures of the
| government to counterbalance each 9TH
er. And he did all this despite the inter-
Venti0n of a war with a foreign power