The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-01-22

In Oriental Markets.
NEW YORK, Jan. H.-Henry Clews'
weekly stock letter says: The stock mar
ket has lately shown the Inertia usual
after such break as occurred In Decern-
ber A period of hesitancy naturally fol-
lows such unexpected shocks, and time
is required for recovery of the injured
and the readjustment of accounts before
a fresh onward start can be effected.
There are indications that this period of
rest has been beneficial, and that the
n arket is gradually getting into good
form for fresh bull movement when
circumstances favor. We lay particular
stress upon circumstances; for during
the present year prices, being at high
er level, are likely to be much more SEN
sitive to unfavorable events than In 1899
While the majority of influences are I'M
questionably on the side of a higher
range of values, they are not so uniform
ly SO as year ago; hence it would be
folly to calculate upon a repetition Of
the movements of 1899, no matter how
bright the future appears. AS already
said, the probabilities favor better prices
In the future, but the next advance will
be more discriminating than it's predeces-
SCR. Buyers will differentiate more
sharply between securities which have
been highly inflated on the basis of
large temporary earnings and securities
free of unreasonable imitation and pos
sessing more stable earning capacity.
Efforts to distribute the industrials
al eng the public will no doubt be re-
neWed; and, as some of these have I'M
questioned merit and good earning pow
ers, such may prove good investments.
Speculation, however, In the average in
dustriai will be conducted with much
risk; and at present no class of securi-
ties offer better inducements either to
investors or marginal operators than the
railroads. For these the outlook is ex-
ceptionally satisfactory. Nearly all the
important systems have passed through
the reorganization period; the water has
been thoroughly eliminated from their
stocks, and their capitalization, as rule,
Is now on a basis somewhat common
surate with their present cost; indeed.
instances could be cited where roads
with all their improved terminals, struc-
lures, roadbed rolling stock, etc, could
not be duplicated at anything approach
ing their capitalization. Again, railroads
have broader basis of revenue than any
Industrial depending upon single in
dTstry can possibly have. The railroads
never shut down: are not affected by
depression in a single industry, and by
reason of their many sources of revenue
their earnings are more certain and
regular than any other important class
Of investments For the next few years
railroad earnings are likely to continue
on an ascending scale; the days of spec
ulative building are over; competition Is
being regulated, not stif1ed by concentra-
t1cn of control, and the outlook is for
more stable rates which benefit both ship
per and stakeholder alike When the
high state of perfection to which Ameri-
can railroads have been developed is con-
sidered, and the extraordinarily low cost
at which freight can now be carried
in some cases as low as $40 of a cent
per ton per mile-the conviction is in
evitable that railroad securities must
eventually occupy higher position in
the estimation of shrewd investors than
they have ever yet done.
These are long distance views of the
market. AS already said, the outlook is
for gradual Improvement based Oh easier
money and stronger intrinsic conditions
in speculation. Much depends upon the
Transvaal war. British defeats
have caused prolonged hesitancy, because
any shock to the London market must
inevitably be reflected here The situa-
ton, however, in South Africa has now
sufficiently changed to warrant the eX-
pectation of series of British victories
Yet nothing is so uncertain as war, and
surprises are to be expected.
The granger roads continue to show
large earnings; likewise the trunk lines
and several roads running to the Allan
tic ports. The Pacific roads are also
making good returns. Some of the
Southern properties have not yet received
the attention they deserve. The South,
it should be remembered, is just now eX-
periencing an exceptional period of pros
perity. The cotton crop has afforded a
reasonable profit to growers, for the
reasons that prices have ruled higher
than last year, the cost Of raising is less
than formerly, and the utilization Of the
seed for oil and cake has added ma
terially to Southern resources. The most
striking feature Of the South, however.
is it's marvellous industrial growth; rot
only in iron, but especially in cotton
manufacturing. During 1889 plans were
| made for investing not less than $30,O0C.-
600 in cotton manufacturing; and already
it is stated good authority that the
Southern states contain 100000 spindles
| against 13,000,O00 in the New England
| states. AS yet there is no fear of over
production, for the South expects to
| largely produce the cheaper class of
| fabrics suitable for export. China will
| prove large buyer of these products.
and no section of the United States has
| a more vital interest in the open door
pO1icV than the South.