The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-10-02

NEW YORK. Oct. Henry Clews'
weekly stock letter says: The closing
| Of the stock exchange and the general
suspension of business for the two last
! days of the week, incident to the Dewey
reception has entirely broken up the
natural course of business In the stock
market. The prospect of the Intervention
| of three days during which there would
| be no access to the market in the event
| of adverse contingencies has naturally
| caused considerable temporary realizing,
| and that circumstance has been an fnV1-
! tation to the bears" which they have
not failed to turn to account. With rel
atively few buyers and many sellers, the
| course of prices has naturally been down
| ward, and a basis has thus been laid
| which, in the absence of new adverse
| factors during the interim, may result in
| repurchases, covering of shorts and
consequent reactonary advance in prices
| at the beginning of this week.
| Apart, however, from these temporary
Interruptions, the position of the market,
in respect to certain adverse factors,
shows a tendency towards Improvement.
! The recovery of $250O,000 in the surplus
! reserves of the banks, in spite Of still free
! shipments of currency to the interior and
an excess of S., 1870, coo in receipts over pay
ments at the subtreasury for the week, is
| a hopeful symptom. 1t shows that the
| banks have got the situation under con-
! troll, and without any violence to their
| Wall street customers beyond a sharp
| discrimination against certain industrial
| cola terals. Also the tone Of the London
market is more settled, though there is
| no abatement in the chances for war with
| the Beers, which is an indication that the
warlike contingencies have been already
largely discounted there leaving so much
| less disturbance to arise on the actual
| outbreak of hostilities.
| London Paris and Berlin are keeping
| sharp eye on the maintenance of their
| stocks of gold, and may be expected to
! do all in their power to prevent ship
1nents to this country. And yet cur eX-
| ports are so large that the foreign banks
must calculate upon having to ship the
metal to New York III free vofume at
| no very distant day. With a steady in
! crease in the supply Of grain and cotton
| bills and the current great disparity IN
! money rates between New York and
! London. it is not impossible that a few
! days may bring the rate for sterling ex-
! change to figures thai will admit of our
importing gold. This need rot neces-
So rilv be an occasion of alarm to Lon
! don Within the last two years We have
! had abundant evidence that a large debt
! OF balance to the United States may be
! attended with an absence of imports of
! gold to this country 1t is not likely that
| our banks would care to be flooded with
! foreign supplies of the metal. Their
! chief immediate concern is to see the
| present stripgency relieved through the
! strengthening of their abnormally low re-
! serves. AS above shown, they are al
| ready gaining control over that element
| in their position; and. in view OF the
unusually large stocks CT money in the
| interior. it Wauld not be surprising If the
| rcfilx OF currency from the West set in
+ lA -onr han31IGP
the Western purchases of merchandise at
| the East have this season exceeded all
urecedent Under these circumstances,
it is not inconceivable that a moderate
| imDoration Of gold-say $1,000 000-might
| be regarded by the metropolitan banks
as better serving their interests than
| larger volume. With the return. say
| $40 coo 0O0 of currency from the interior
and the receipt of $4,000. 900 900 of gold
! from Europe the reserves would be re-
/ stored to a condition compatible with
| steady ease, aid their interests would be
| better served by advancing against for
! eign exchange and permitting gold to re-
! main among our European customers
than by encouraging The shipment OF
! the metal hither and forcing stringency
/ abroad at the cost Of Gripping purchases
of our products and forcing an unnatural
! return OF our securities.
These factors suggest probability that
| we are approaching the end OF acute
| stringency in the money market and
| show that the process of recovery is
| likely to prove a steady and sure one.
| How near relief from gold imports may
| he is inferabe from the fact that sterling
! sight bills are selling at within l cent
| Ct the rate al which floating gold cci'l
| LIE proftaoly bought in LonCtn for eS-
| port.
AS these drifts come to be I'M
| derstood and appreciated the DISPOSE
! ton to buy securities may. be expected
to gain strength. There is dormant
conviction that, in the absence Of I'M
! fcreseen unfavorable contingencies, W all
! street is destined to see vigorous actlVl-
/ tv in stocks during the next few months
| That conviction has such a strong basis
in the unusual prosperity OF business
| and in the rising industrial and CONNER
ciaI status of the country that, judging
! from experience, it would be strange If
| the speculative spirit did not sooner or
/ later run into considerable buoyancy
| The increase in the earnings of the rail-
| reads strengthens these probabilities. Inc
| July earnings Of 1N roads surpass al!
| records. The gross receipts snow an IN
crease over last year of $12,A50O0, or
IL 76 per cent, while III the net there is
gain CT So 245, 600, or at the rate OF 2o.SI
Ter cent There is no restraining the
! effect of such figures, alike on inVes ,meht
| and speculation. 1t seems reasonable To
anticipate that such conditions and pres
| meets may produce eager buying so soon
| as the market is free from the present
| monetary and political restraints. This
would encourage 100 much buying, which
l don't want to encourage with money
| now 20 per cent. Meanwhile quick IN
and-out turns in the market will prove
thf and most reinuneratlV6.