The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-07-23
UELk IN WALL STREET
STRONG UNDERGONE TO THE MAR
KET BASED ON EXPECTATION
OF TRADE REVIVAL
MUCH DEPENDS ON THE MONEY
The Flow Could Be Turned to the
United States by an Increase
In the Rate of In
terest.

aIut III the absence or authenticated
reports to the contrary, the fate Of the
American and European colony at PeIxin
Beems to be sealed. The great powers are
still working harmoniously together, but
there seems to have been a woeful under
estimation Of the discipline and mill
tary equipment of the Chinese. Our gov
ernluent is very wisely refraining from
q declaration Of war. We have nothing
TO gain and a great deal to lose com
mercially by the recognition of a state
Of war on the part of ourselves or the
otheT powers through the abrogation OF
existing treaties or any modification Of
the open door agreement so ably con-
Eummated by Secretary Hay.
Affairs at Tien Tsin are in a more
hopeful condition. but the quelling of
the rebellion promises to be a laborious
and costly task. 1t is to be hoped that
this may be brought about even though
slowly, without a formal state of war,
which would entail strained conditions
all over the world.
The London money market has been in
an unsettled state ever since the begin
ming of the Transvaal war. Germany
and Russia have lately been passing
through the throes of an "industrial'
panic, France alone of the continental
powers exhibiting at present any fnan-
cial strength. But comparatively high
discount rates at all European centers
Paris included, would act unfavorably
Upon the placing of any necessary war
loans there. The United States alone
seems, through extraordinarily pros
porous conditions, in position to furnish
a portion Of the needed funds in case Of
emergency
While the loss of the ENJOYS and others
in China is to be very deeply deplored,
the common cause Of rescue and retribu-
ton IS serving to emphasize the fact that
the very highest self-interest OF each and
all Of the interested nations lies In mutual
good faith and cooperation. Caucasian
civilization must unite as a matter of
self-preserYation. Petty differences and
5ealousies are being eliminated, and a GER
tain brotherhood which In the end can
not fail to be Of benefit, is being establish
ed among the Western nations. One fact
seems Ito be clearly demonstrated and
that IS the extreme hazard Of any hold
ing by foreigners of interior towns Or
districts in China. Any further acquisi-
tons will no doubt be confined to points
on the coast where the superiority Of
european naval power may be Joined in
defense against Monaghan uprising. Anv
Interior settlement among this vast az
gregation Of 4O0.OOO,O00 people is simply at
their mercy through mere force of num-
bers and might be wiped out over night.
4he time seems ripe for a division of
China into a number of municipalities
with distinct governments. The continu-
alton of this vast nation under one cen
tral government is a standing menace
to the rest of the world. Although the
prejudice against Western civilization
may never be overcome, still a division
pr the Chinese government as suggested
would provide a greater measure of safe
" tor other peoples as internecine strife
would serve to keep the Chinese pretty
wen occupied with their own affairs, with
ponsequently less time for foreign aggres-
Flons This situation suggests an aneo
Pote OF the great Louis XIV, who when
Rsked II he were aware that his stable
hne horses was much given to the kick
ing OF each other, replied that he was.
And that he should do nothing to correct
the habit, as the horses were thus less
likely to kick the eoaehman As I have
indicated above, the partition of China
into European holdings appears far from
uesiraole, and indeed more remote than
heretofore. The problem Of settlement
requires the ablest statesmanshin and a
rar look into the future.
The iron and steel trade present. q
more encouraging aspect this week Sew
erdI good Western orders have been Mao.
ed and while large consumers in pen.
eral are still hesitatlng, being as vet a
niue IN DOUBT as to whether the market
pas reached bottom, indications of re-
lover level OF prices has brought MANY
enquiries from abroad covering a range
OF material from pig iron to the most
AlghIy finished steel products pointing
20 an early increase in an already flatter-
ing foreign trade. The advance in the
pdnk OF England's discount rate to per
cent ana the drop IN consols under SO are
que to the more acute state of affairs In
Chlha' as well as to the prolongation of
the South African struggle. One effect
may not unlikely be to induce European
selling Of our stocks Cor at least TO defer
buying for the present. which, In con-
junction with the more serious view Of
the situation taken here, is likely to
bring about hesitation, If not a lower
range of prices.
The stock market, while relatively dull.
showed unexpected strength. Strong in
side support and dividend rumors were
the chief explanations, Union Pacific.
Baltimore & Ohio, illinois Central, Mis-
souri, Pacific and Sugar being the chief
features in this connection There is also
strong undertone to the market, based
apparently upon the expectation of a
trade revival in the coming fall and a
satisfactory result of the elections. AS
yet, however, few are bold enough TO
buy stocks on a large scale, on the PROS
pect of another victory for the sound
money cause; the Yieissitudes Of a cam
uation until the worst that may happen
is almost positively known. Surprises are
always possible in a presidential cam
paign, and the coming one IS not likely
to prove an exception. The Chinese
difficulties eKerted little effect, because
1t IS we'll understood that the sending of
whatever American soldiers to China
may be necessary will not be serious
expenditure to this government The
present rate Of surplus revenue would
permit our carrying on military opera
tons of considerable magnitude without
any embarrassment whatever to our
finances. China, on the other hand, is
not in any position to conduct a prolong-
ed war; having but very limited military
or financial resources.
She may keep up a long sustained re-
bellion; but that would be less costly to
Others than long and savagely con-
Quoted war. There is the possibility of
the other powers getting into difficulties,
and what the effect would then be upon
the European money markets 1t is impos-
sible to say. The United States, however,
is in the strongest condition financially,
and would be best able and least called
upon to meet such contingencies. Eu-
rope is already a large holder of Amer
lean funds, and while we are now actual
y shipping gold abroad we have the
power to recall these sums when wanted
by the simple advance of interest rates
Money is easy now, but higher rates are
in prospect as soon as the regular crop
and trade requirements assert them
uClF re uxyffl IL lit,