The Saint Paul globe., 1900-04-30
STEEL IND WIRE SHOCK
STOCK MARKET VERY SLOW TO
RECOVER FROM ITS
EFFECT
PUBLIC STILL HOLDING OFF
Railroad Earnings Continue to
Show Encouraging Gains because
They Are Well Up With Those
of Last Year.

NEW YORK, April 2S-(Special. y
Henry Clews in his weekly financial re-
view says:
The stock market has been slow in re-
covering from the shock impaired by last
weeks developments in Steel and Wire.
The losses then incurred have naturally
exerted a deterrent effect upon Specula-
tion, giving professional operators an op-
portuntty of forcing liQuidatlon that they
We're not slow in Seizlng. All the steel
stocks suffered in sympathy, and the de-
cline was assisted by exaggerated reports
OF declines in the iron and steel trades.
Many of these stories were utterly un-
true; but they had the desired effect
upon values on the stock exchange; and
weak or timid holders OF these securities
We're frightened into parting with their
holdings at considerable losses. This is
one OF the experiences that may be eX-
pected in the industrialS. They are vastly
more exposed to the manipulations of
bold speculative managers than were the
railroads in even the early days of rate
cutting; and the best security against a
repetition of such practices is the en-
pioyment only Of officials whose integrity
and character are beyond suspicion. AS
Tor the iron trade, it is still in eXcep-
t1onalIy satisfactory condition. Prices
have often been abnormally high owing
to the extraordinary conditions of supply
and demand. Some moderate recessions
IN values are highly desirable; because
they would Immediately attract a large
Dody OF orders, not justified at present
lgureS. Such action would really place
the iron trade upon more normal and
more stable conditions than at present
But no important changes are yet in
sight. Pig iron Of high grade quality has
not declined, the only shading being on
southern pig and a few off grade makes
Inc large producers Of pig iron are fully
employed and have their output sold up
10 the lst Of August. Later on it is quite
likely that some concessions will be made
in both raw and finished products; and
as prices at present are abnormally high
such reduction will be a wholesome
stimulus to industry, and not cause for
apprehension, as certain stock Specula-
tors would have the public suppose.
Speculation in railroad shares has been
on very limited scale. The public have
refrained from buying since the break In,
Steel and Wire; and the short Interest
once heaVy, has been largely covered
w nile the large holders are not selling
stoGks, they are not at present making
hence the market has been left mainly
70 the professional element. General out
side conditions have undergone little
ctnange and these seem as favorable as
two or three weeks ago. Money is easy.
ana ana promises to so continue for some
ume to come. The prospect of moderate
exports Of gold excites little concern;
LIS LIS pelng the season when an eff1ux Of
gold usually sets in. Money rates are
nlgh In London; and as gold generally
goes where 1t is most needed In spite OF
trace balances. 1t is not unlikely that
re
are generally favorable; especially in the
west, where the feeling is even more
IloPeful than in the East No surprise
need be shown should trade assume a
IluIetef phaSe in some departments after
me heaVy business done during the last
slS months. Distributors are often carry
ing ample supplies of merchandise,
pought at lower than current prices. and
tlIllll "a these are disposed of they are likely
- somewhat restrict their purchases.
o,Ia G,oalectlons, however, are good, and mer-
IGIid51ts from all parts of the interior are.
looking forward to a continuance of large
eea feeniAno. 1n crop reports are very favorable
Tor this time of year and tha SoHth Is
benefiting greatly by the higher nrices for -,
.Cotlon ana the wonderful deVel0pnent in
cotton mill building. Railroad earnings
conIiIlue 10 show most encouraging. gains:
Uitb 4kas Lketslng because they now compare
MIN " me remarkable gains of a year ago.
~ ~ would be no cause for alarm shoiIld
eaHey occasionally fail to reach last vear's
ngures; but that they still continue to
fI1tl fpt paas tnern IS the most striking CON
!y t:y, that could be desired. The presiden-
tlaI campaign is not likely to bngin in
Earnest until August next This is 1iSualIv
fin1e peiloa OF more or less uncertainty; a
Luz, silae When speculative commitments
S!louio De undertaken with caution In
uIcatlons are that the coming camnsion
WI, ~mIie nhely TO be an earnest one, will be
isemas paraelVely af 4y free from the threatening
IesI. free silver may be injected into fha
campaign oratory, but it will fail fo be
lnnuential and with it any attack Tnon
SL,e+a1o SIe inoesrIty OF our present sound money
n nyslSu. Condlt1ons are favorable to tha
!i p!uirchase of good railroad securities ,1nnn non
an FeactlonS; it would probably he ,oi1ob
eaSler 70 manipulate a rise of several
Peti'is pet Is a onan similar fall; but the mar
l hel IS open to surprises, and sneculatiI1o
operations will have to be Conducted 1,itk
d Close eye upon immediate events i