The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-07-02
WALL STREET VIEW POINT
TO THE WEATHER
Sin CLERK
NEED REIMBURSEMENT OF RAIN
With That Cotton and Wheat Will
Recede and Stocks Take an Up
Turn-The Market
Unsettled.

Unsettled.
NEW YORK, June 9O.-(Special.) 1.-THE
stock market wore an unsettled appear
ance last week. On Monday and Tues
day the bears made a successful demon
stration which forced considerable liquid
alton and a sharp decline in values. This
was followed by a good rally, chiefly the
result of short covering, after which the
market-setted down into state of COM
parative apathy pending future develop
ments
There are number of favorable factors
In the situation, such as easy money,
good railroad earnings, and unusually
large July disbursements; but for the
time being these are entirely overshad-
owed by the approach of the Kansas
City convention, unfaVorable crop re-
ports. the Chinese disturbances and the
diminished activity of business. Evi-
dences multiply that trade and industry
are reacting after the phenomenal rush
of 1889; that prices have weakened as a
result of supply overtaking demand, and
that buyers in consequence are holding
alOof until convinced that bedrock has
again been touched. The turn was first
observed in iron, and made conspicuous
by Mr. Gates somewhat unusual but
very correct statements about Overpro-
ductiOn, high prices, etc. Since then,
iron and steel prices have been steadily
shrinking; taking along with them the
securities of the iron and steel COM
panies, which will not be able to show
such handsome profits in the current year
as in the previous one. This process of
readjustment does not yet appear com
plete; for. while the lower range of
values is certain to bring in a batch Of
new orders which have been held back
for just such opportunities, still the iron
and steel managers find themselves in a
perplexing position, with high priced raw
materials and the advances in wages to
contend against Should the present
conditions continue very long, concessions
would have to be sought in these latter
directions to compensate for diminished
profits. The steel companies already
find it impossible to meet any further
demands from labor; and on July l
good many shut-doWns will occur partly to
overhaul plants, but very largely to
check overproduction. The cotton trade
is in a very similar position to iron.
Prices of finished goods are steadily de-
Ginning; print cloths in Fall River having
dropped from SIC to 27sc for standards,
with no buyers at the decline, and ru-
mors of a weeks shutdown. High
priced cotton and low-priced goods do
not conduce to happiness among cotton
manufacturers, and some time must
elapse before the readjustment process is
complete. Reports from the interior in
dicate that all kinds of goods are going
steadily into consumption, and that no
cessation of demand in that quarter is in
prospect But manufacturers and mer-
chants who have overestimated future
requirements under the stimulus of last
wears boom will have to contain them
selves in patience for a period, until the
normal balance of production and con-
sumption is restored. In few months
at the most, our markets ought to again
be in a healthy condition. Lower prices
will quietly check excessive output; ana
we may confidently look forward to
more moderate and more permanent pc
Rod Of prosperity than the intoxicating
experiences of 1899.
This is an age of gigantic combinations.
We have experienced 1t IN connection
with railroads and more recently on d
larger scale still in the formation OF IN
Fustrials the amount of which during the
mast wear has exceeded $1,000, 100000. All
other combinations, however, are Tar OUT
aistanced for VaStnesS ana unlqueheSs py
the combination just formed or all the
leading nations of the world against
China-the most populous nation on earth.
As an evidence of this, the following ng-
nres are convincing, showing the popula,
ton of the various countries now united
with this common object: United states,
BO.O0O. OOO: Germany 81, 000, goo; France, 49,
boo 600; England, 40,O00,OOO; Russia, S3,00,-
GOO; Japan, $4,000 GOO; total, 335, 100000,
versus 40O,000,000 Chinese. A successful
termination of this novel warfare it is
hoped will cause a lasting union of friend
ship between all the great powers and
thereby do away with any further appre-
hensOn of future claShing Of arms be-
tween them. This would indeed be the
millennium.
The crop situation is not wholly salts
70 &c
the northern sections of the spring wheat
section, while the southeastern part of the
country has suffered from excessive rains.
Still, outside of spring wheat no serious
damage has been done, and the outlook
IN lite of such damage is for amp,e croEs
in all the staples. 1t is altogether too
soon to take pessinlistic views Of the
harvest, which is weeks off, and just as
likely to be favored with good conditions
the remainder of the season as with bad
or Indifferent conditions. The next thing
to be readjusted is the weather. The
present cloud oVerhanging Wall street is
too much rain in the cotton country and
too little In the spring wheat belt, hence
cotton and wheat have had an immense
advance while stocks, as natural Sc
quence, have had a big turn the other
way. If the rains in the South will stop
and break out in the Northwest, the
situation will soon right itself-then
Wheat and cotton will recede and stocks
turn upward again. 1t is now, however,
all dependent upon the weather, which is
beyond the control of any of the Wall
street magnates- Providence alone con-
trolls. The thing to do, therefore, is for
operators to get in touch with the clerk
of the weather for a safe guide. Better
prices will probably compensate the farm
ers as whole for any loss in yield, and
the activity with which grain has re-
Gently been rushed to primary markets
proves that the farmers consider the pres
ent a favorable opportunity for selling.
Had they faith in short crop scares they
would not be parting with their product
so readily.
We continue to suggest caution regard
ing the market. Easy money, July dis
bursements and improvement in the
Chinese situation will be some support to
the market; but the bears. strengthened
by recent successes, are still aggressive;
and, with the Kansas City convention at
hand and other unsatisfactory conditions
referred to above still to be dealt with,
the immediate outlook is by no means
positively clear. In case of surprises
values may be subject to sharp attacks;
though on pronounced breaks good stocks
will probably be purchase.