The Saint Paul globe., 1900-05-14
REASONS FOR 4 REACTION
HENRY CLEWS DISCUSSES THE;
CONDITIONS OF THE STOCK
MARKET
STILL BLAMING STEEL WIRE
General Trade Showing Signs of
Less Activity - Future Admitted
to Be Prob1ematicaI-NO Bull
Movement in Sight.

NEW YORK, May 12.-(Special)-The
reactionary movement in the stock mar
ket developed further strength last week,
and the tendency has been much less
bullish than two weeks ago. Good rea-
sons exist for a strictly moderate reac-
ton. Values of good properties were Of
ten pretty high; and more or less iqui-
datiOn of speculative accounts was in
eVitable in the absence of fresh stimulus
to outside buying. Here and there Sc
curttes could be picked out which had
not received their full share of the rise;
but with a modification OF favorable con-
ditions in other quarters their upward
movement was made more difficult.
The most important setback originated
in the iron and steel stocks which de-
clined owing to unfavorable reports of
the iron trade This great branch of in
dustry, however, is not going to destruc-
tion; 1t is still enjoying prosperity, and
and possibly years to come. The worst
that can be said is that the abnormal
rush of orders the like of which was
never before experienced has subsided :
and the extreme prices which buyers
paid IN their panic-like anxiety are now
a thing of the past Demand is tempo
rarlly abatinS; production is increasing,
ana values must soon reach more nor
NAL basis; and this may not be accom-
pllshed without some injury to the poor
ly equipped and poorly organized con-
Germs winch ought never to have enter
cd the race of competition. This. condi-
ton IS no surprise to those engaged in
the IRON business; a reaction has long
been foreseen; and, as soon as prices
nave settled down to a lower and more
reasonable basis, it is more than prob
able that new set of orders will be re-
celVed; there being many enterprises
improvements and enlargements which
nave been postponed owing to the high
prices of iron. While the readJusting
process in the iron trade may injure
those unprepared, it will result in plac-
Ing that great industry on a STRONGER
~ i4xr
than Just now exists. The United States
with it's unlimited supplies of cheap ores,
us unrlValed means of transportation
and It's unequalled skill in the art Of
manufacturing on a large scale, will lead
the world in iron manufacturing; if in
deed it has not already reached the nosi-
tlon or leader. Already we are success
iuIIy placing our iron products, from pig
IRON TO locomotives to typeWriters and
hundreds of other articles, in the foreign
markets MAJ C hitherto controlled by England
anu al germany; Our success in these fields
Is an assured fact; the future is simply
matter of growth, or, to use a more
SUITABLE word, expansion. In the future
the IRON industry will no longer be sole
~ dependent upon the home market and
the periods of excessive Congestion wbicb
that meant will be fewer and far he
tween; for the foreign markets will Of
Ier an unlimited field if properly cuItfvat-
eo TO American enterprise for years To
come We are accustomed in this conn
Try 10 spells of violent depression after
every period of unusual activity, and If
VIII pc interesting to observe as to how
far these new outlets for our surnIns vii
save us from the effects of oversunniv
and reaction NpPiS
General trade shows some signs of Iese
acuVlty; but not more than could he rao
sonably expected after the rush of fba
past six months. In the textile trades
the pace has been little too fast in
some respects. and buyers finding. vaIuas
unsettled are holding off until their Iaroe
early purchases are disposed Of In son3e
illeS OF groceries there are signs of over
Duylng, and similar reports are heard
IlSIe ana there from other trades AS a
sound and promising. The apDroach of a
preSldentlal election acts as DETERRENT
III some quarters, much more than ~
really should, but there Is every pros
peel OF a renewed revival Of business
when the elections have been discountad
and values brought down TO a morn ,,17. ,,[1o
NAL level - a liiole nor
The Immediate future of the stock mar
ket Is somewhat problematicaI The IN
ouStnals have already dropped consider
apIy below top figures, while the rail
Toaus are making such excellent retIIrna
that no anxiety need be manffestnS 80
snouId they cease Overtopping the bie
gains Of 1893 On the other hand II woniS
De uncut to force any pronounced buII
movement under present conditions
@ @5oou MANY operators attach more imnor@
ld1ce 10 campaign oratOry and gold shin
ments than they deserve; hence fhnee
factors may affect prices adversary
AsdlH une summer season is annroocbino
atu I:L period of quiet and uncertainty isS
Ilkeiy TO prevail until the time When +bo
81 tiiop OUTLOOK and presidential uncertain-
ues are more settled than now Eor ~
present purchases should onlv ha I,,oI9
on good declines, and nrofits +a1,a Oe Ltdue
sharp rallies '"NeA OH all