The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-03-05

Conditions Continue Satisfactory.
The Third Avenue disclosures have
clouded the stock market for consid-
cradle period. So long as uncertainty
prevailed In this quarter and important
financial interests were diverted from
ordinary affairs, the market was effec-
lively prevented from responding to nat
ural influences. Now that the worst has
come out concerning Third Avenue and
been amply discounted, substantial con-
ditions are more likely TO assert them
selves again.
Apart from this unfortunate circum-
stance there have been developments of
favorable nature that must eventually
work out beneficially to values. First in
Importance Is the turn Of tide in favor Of
British arms in South Africa. Both Kim
berley and Ladysmith have been relieved
in surprisingly short space of time as
soon as the British army really fitted
itself for the task. This is the beginning
of the end; for while the Beers may be
expected to prolong their resistance,
nature being a powerful ally on their
side, still with waning resources and dis
pared with unlimited resources and sue
cess on the other, there is nothing but
sheer stubbcTnness on which the Beers
can continue the struggle If Dom Paul
exercises his usual shrewdness. he will
make an early peace to secure better
terms than are likely If he waits for the
fall of Pretoria.
The effect of British military success
on these markets will of course be indi-
rect. London has been relieved of
threatening money pressure, the cost of
the war necessarily being a depressing in
fiuence upon the security markets With
a diminution Of the prospective pressure
on the London money market, confidence
should revive and enlarged buying fol-
low. London is less likely to draw upon
New York for funds, and there is a cor
responding sense of relief here. 1t is not
at all improbable that If the war should
come to an early close, London would
become free buyer of American securi
ties.
BULLS NOT A UNIT.
An advance movement in this market
is held In check by the prospect of firm
money for the next three or four weeks,
and the indisposition of the big holders
to pull together on the long side. There
is no question whatever but that the
heavy operators are bulls for a long
pull; but for various reasons, such as the
troubles in the traction and gas stocks,
they are not a unit; hence the market
fails to respond to the many favorable
conditions which are cropping to the
surface almost daily. For the present the
new gold standard law has little effect,
because its enactment has been a fore
gone conclusion for months Later on,
possibly within a few months, it will
have still further effect owing to the
expansion Of the currency, which it will
facilitate. There is no need to fear un-
due imitation: By allowing the banks to
issue circulation up to the par value Of
the new 2 per cent bonds and reducing
the tax on circulation from l per cent
per annum to n of 1 per cent. 1t is con-
servatively estimated that the bank-note
circulation may be increased 100000, coo
and possibly more. This Is an important
addition and is likely to be much need
ed next autumn when the usual crop de-
mands set in. Another excellent feature
of the new bill IS the raising of the
treasury reserve from 100000, 900 to $160,-
000,0G0 gold together with additional
measures of protection for the same. Tie
treasury is still taking funds from the
banks, and in view of the large borrowing
demands for legitimate trade purposes,
an unfavorable statement is anticipated
at the end of the week. Since January l
there has been an expansion Of about
$50, 900 in the loans of the associated
banks.
TRADE CONDITIONS.
General trade conditions continue very
satisfactory. In the iron trade there are
no signs of abatement in the eXtraer-
binary activity which that Industry is
sharing. On the contrary, there are In
~, rl1OIth
1900, and many of the leading concerns
are making much larger profits, having
| finished old contracts on the low price
| basis and are now working on higher
| priced contracts. The cotton goods trade
| is also experiencing large and more
| profitable business. Buyers are taking
hold with unusual freedom, and are more
anxious about deliveries than prices, Raw
| cotton took a surprising leap, and the
better prices now obtained mean many
| additional millions to the South. The lat
| ter section of the country is to be con-
| graduated upon a degree of prosperity
| that has not been witnessed since the
1 war. Railroad earnings continue to dem
| onstrate in the most emphatic manner the
| business activity everywhere. According
| to the statements of the interstate COM
mission the increase in gross earnings of
! American railroads from 1896 to 1899 was
| over $685. 900, 600. OF this total $175, 600 coo
went in increased expenses, and only $780,
| 100000 to net earnings. Current earnings
| show remarkable gains, sixty-one roads
! reporting an increase of over per cent
| in the second week of February.
In the face of such facts it will be i'm
| possible to keep the stock market down
| indefinitely. Some time in the not very
distant future more activity in specula-
! tive operations is inevitable. For the
present, however, speculative opera
lions will have to be conducted
! with prudence, especially until the future
of the money market is more settled.
AN EVENTFUL WEEK.
/ March i, isOO-This week has certainly
/ been eventful The surrender. of Gen.
! Cronje to the British and relief of Lady
smith have been favorable influences to
! Wall street, as against the unfaYorabie
Influence of the Third Avenue railroad
/ going into the hands Of receiver. The
! stock market should now cut away. from
| the latter adverse factor, owing to the
! substantial backing of phenomenal rail-
| road earnings at the present time, as
evidenced by those of the Atchison road
! 1t is no wonder, therefore, that railroad
securities should occupy firm position
| In the worlds markets; otherwise such
| shocking disaster as has happened the
| Third Avenue railroad "a stock which
| was held by everybody who had it as a
| solid investment was this time last year
selling at 242, and has since deprecated
1877 per cent? would have been very likely
| to have caused a good-szed panic. The
| market can now be said to be selling ex-
| Third Avenue disaster, but is held in
| considerable check by the doubt as to
| what the next dividend is to be on Sugar
which is to be determined at the direct
| ors' meeting next Wednesday.
| III. In Oft on IN