The Saint Paul globe., 1900-05-07
LABOR AND GOLD EXPORTS
INFLUENCES THAT HAVE MODI-
FLED THE CONFIDENCE IN
THE STOCK MARKET
VALUES LIKELY TO GO LOWER
Satisfactory Reports of Railroad
Earnings Continue to Be Made,
But Buying Element Needs
Some Stimulus.

| NEW YORK, May 5.-Labor troubles
and gold exports have partially modified
the confidence shown in the stock market
! during the past few weeks.
1t is useless to deny that the threaten
| ing attitude of labor is viewed with con-
siderable concern by both Industrial and
railroad managers. Wages in the lower
| grades of labor, where business has been
exceptionally gooG. have IN many In
| stances been voluntarily advanced, and
the new industrial combinations have
often been enabled to snow exceptional
hDefality 10 their employees in the matter
of wages. 1t is not forgotten, however.
that these advances have been granted
because OF phenomenal conditionS-condi-
tlonS which cannot be expected To. con-
tlnue very much longer, and when they
cease wages must decllnes The cost of
manufacturing has already been so heay-
Hy enhanced in other directions that any
REDUCTION In the cost OF finished products,
which must surely come as soon as the
pressure OF demand abates, will compel
the manufacturer to resist any further
rise in wages, and may in fact oblige him
10 ma means of leSSening the labor cost
IL Is quite possible for the demands of
labor TO be pushed so far to injure it's
own interests most. American manufac-
turerS are rapidly increasing their product
Tor foreign markets, and about 70 per cent
OF our exports now consist of manufac-
| tured products. Let the cost of these be
! carried any higher, and we shall imme-
diately be shut out of many foreign mar
kets, the foothold we have gained shall
| be lost and surplus products now export
| ed VIII be thrown upon the home market
forcing either Shut-downS or reductions
instead of advances in prices and higher
wages. Labor is already sharing freely in
the general prosperity; the present large
gains OF capital are only temporary and
VIII barely compensate to the extent of
making respectable profit for the last
hVe years. 1t is Il comparatively small
period since many manufacturing con
Germs were on the edge of bankruptcy or
else only earning beggarly Dividends and
before many months they will be Obliged
earnings. The true friend of labor will
certainly advise moderation Labor has
peen generously and fairly dealt with by
the great corporations lately, and it will
simply cause injury to itself by enforcing
terms that restrict production and check
new enterprise If the labor unions would
only select men of character and ability
as leaders, instead of professional agita-
tors or would-be politicians their cause
would be better served and their progress
more sure When the spirit of fair nlay
prevails equally between EMPLOYER and
empioye, We shall have few labor disputes.
Gold exports have attracted more at
tentl0h than deserved. AT this period we
usually ship gold, and, as money is worth
!ql12 per cent more in London than in
New YORK 1t Is but natural for gold to
now IN that direction. While more will
probaDiy follow there are no indications
that the effiuX will be sufficient to cause
any inconvenience here Money rates are
easy; FUNDS are returning from the in
terror; trade requirements are relaxing:
oank reserves are rising; the treasury Is
taking less from the banks than usI1aI
and now holds over $4,000 900 of free gold
that could be taken before the sllrDIIIs
reserve. of $50 600, 600 could be reached
In the money situation therefore there is
no cause for concern; in fact New York
IS now practically lender of funds in
London, Paris and Berlin; than which
we could nave no better evidence Of finan-
clal strength. The trade situation shows
some abatement of the rush noticed dur
ing the past six months. Some manufac-
turers Will be occupied for two or three
months on high-priced contracts but new
orders are coming in more SLOWLY. Buy
erS have gotten over their excessive zeal
TO get goods, and in some departments
OF merchandising retailers are already
carrying large stocks and will probably
put in their duplicate orders with less
freedom until these are worked down to
normal proportions. For these reasons it
would cause no surprise if general busi-
ness slowed down somewhat at first
handS. II then some shading of values
should follow, new orders would proba-
bly, come In more freely. In the iron
trade most departments are fully en-
have yet been made. The present abnor-
NAL prices for these products cannot.
however, continue indefinitely. and as
there are many new projects deferred he
cause of the high cost of structural ma
terials a lower range of values would
place such industries on more stable
and natural basis.
In the railroad situation there is no
feature OF Importance except the contin-
ued satisfactory reports of earnings
These strengthen the preference which
we have persistently expressed In these
adviees for railroads over any other
large class of investments The stock
market at present is so completely in
the hands of the trading element that its
course is difficult to forecast Intrinsic
conditions are sound and encouraging; vet
there are 50 many questions ahead which
may affect speculative forces and which
cannot be foretold that the best advice
we can offer IS caution. There are num-
higher figures, but just now the buying
element seems to require fresh stimulus.
Stocks are generally in strong hands, and
concerted effort could easily lift the
market were the leaders SO disposed