The Saint Paul globe., 1900-06-04
GOLD EXPECTED 70 FLON
WITH THE COLLAPSE OF THE
WAR RELIEF LOOKED FOR
IN LONDON
LOCAL SITUATION IS SOUND
Stock Market, Though Dull, Shows
Good Resisting POwers-MOney
Market Continues Unfa-
vOrabIe for q Rise.
NEW YORK. June 2-Henry Clews, in

NEW HOttk, June Z.-Henry CIeWS, IN
his weekly financial review, says:
The collapse of the Boer war, even more
! suddenly than generally anticipated, i'm
parted a stronger tone to the stock mar
| ket; especially in London where the
| strain was chiefly felt The relief there
must have important consequences, finan-
| cially as well as politically; for the stop
| page of gold supplies from Africa and the
| heavy drain Of the war upon the British
treasury naturally caused more or less
| financial arrangement, which became
| more burdensome as it progressed. The
! supply of gold from South Africa will
soon be resumed, possibly with greater
Freedom than before; thus lesSening the
! inducement for taking gold from the Unit
| ed States These additions Of gold, to-
! gether with what may be received from
the Alaskan gold fields during the coming
| summer months, will prove a decided
! tonic to the financial situation, and rem
| der less difficult some of the problems
| winch European hnancierS are obliged to
lace. AS one war closes the shadow of
| another looms up in the distance; the
present disturbances in China showing
! with what intense jealousy the several
! powers are watching events in that part
of the world. AS yet, however there is
| no prospect of serious international diff
cuIties; and it is worthy of note that wars
ana rumors Of wars have far less effect
upon tne securities markets than former
ly; our war with Spain and England s
war in South Africa having, it will be re-
membered, astOnishingly small influence
cause these wars were brief and carried
on IN parts of the world where in spite
OF the suffering caused, the disturbance
small
The local situation is sound; and. while
the boom must now be considered
matter OF history, there is nothing dis
couraging in the future The day of alb
normal profits is over, and was not eX-
pected to continue. Possibly some dull
ness may De experienced until trade set
Ties into more normal conditions but this
VIII be only temporary. Merchandise
values have already receded considerably
from high water mark, and they cannot
decllne much further without bringing in
a new set of orders which have been held
/ Dack for Just such an opportunity 1t is
! this 'held-b2ck' business upon which we
| can confidently predicate a continuance
Of business activity under more stable
conditions than existed six months ago,
Credit has not been unduly expanded;
oVeFproduction is not yet in sight; con-
llu9nce III the future prevails everywhere,
ana lhere IS no visible check to new enter
pflSes The trust mania is over and
speculation has not been pushed to the
Canger point An important factor in our
laVor Is the wonderful increase in the
foreign demand for American manufac-
lures, which is bound to continue and
pay an important part in our foreign
trade returns, as well as an IInIinoifed
outlet Tor American skill and enterprise
Ire stock market, though dull shows
unusually good resisting qualities Two
Hhportant failures have recently occurred.
causing, however, scarcely d ripple on the
STOCK exchange. The fact is so few stocks
are held IN weak hands that there is Ht-
fano2 fle opportunity for .Iiquidation either
Iofced or ia tural. Short selling only
seems to furnish fresh basis for the raj
lies seen from day to day; and, while the
market displays no pronounced tenden-
5oi, G5Ies' It IS quite plain that efforts for the
uecIlnc promise little success. Strong in
tefests which DO not intend to permit any
important reaction are still under the
Inarket even If they do not consider the
present an OppOrtune period for starti1or
a vigorous bull movement The latter
can hardly be expected at the present
. LlLne There is general disposition to
y NaIt e,o ufI6ll ad the presldential nominations
are naoe; nor is it likely that there will
De any bold buying of stocks until the
crop outlook is more certain The rail
Lodds are doing a large traffic and make
Spiei!ulu comparisons in gross earnings.
sput 1t must not be overlooked that ev
pehses have greatly increased ard nnt
earnings cannot be expected to show the
same ratio of increase as gross This ex
pense ratio is perplexine nrobIero for
FalIroad managers, and one that will have
returns. 80 W iuN'iu
The monev market continues in a copdi-
Ion favorable to operations for rise
bank reserves are increasing: there is
IgsS prospect of the treasury iniurioueIy
cpSorbng funcs; and The special demands
Tor accommodation which rasuTted frono
nnanci1g the big trusts and consolfda
tlohS last year will not be factor this
summer or the coming fall. The demands
rom commercial borrowers may show
some increase later on: but the nooetqrv
outlook IN general is for continued ease
especially since the close Of the African
war removes one Of the chief ineen fi,,ae
TOT gold exports. Balancing the various
CcI''utlonS TOR ard against the market
We ere inclined TO take n favorable view
o1 thA future. SGr1e stocks NAV show
occaE!nnal temporary wea knoss but good
securities viii prove a purchaee on ~
decided reactions. Two innortant dis
IurpanceS, the gas ard sugar wars are
out OF the way, and this will remove
N wnat nave been serious obstacles to a
better marke,
in my weekly letter under date Of Ian IL
and. as il has becn verified bv recert
events. 1t bears repetition:
Ire Bner victories are about at an end
II they have not been able to take adv
Shith and kimberlFy. with their advan-
,IIt raees at thelr zenith in the contest, i il
Ttetty sure fheV viii not do so heTea fter
because the British are very apt tn soon
lnfRe TO the rear of the Poers' f1r+5fra-
lions and move rapidly on Pretoria there
pE competing the Beers to give up their
present impTegnable fOrtifeations and
iuafch nome for the protection Of the can
IItI ana the archives of the eOVerun1o,14
The British certainly must have learned
me stupidity Of alta cking the Beers h.
nlnd forttHcatt ttOnS which they have ben,,
erecting for the last several wears and
as result Of their exDe~:nncn wise ani
SdFacieilS STRAIT tegE in conducting the war
- most like'Y tn be adOnted We roav
!neretcr@ eXnect anv moment IN hear +ha+
the Fr't'-h b have oircUmvArtad tho Roor
army and arc moving into the anoro1,..
country 9nd nreDn rino tn give ba+tIa +bo
t+SuII or winch IS plain - be seen so