The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-03-12
DULL in WALL STREET
REASONS NOT HARD TO
FIND
UNCERTAIN MONEY MARKET
Speculation as to the Amount of the
Expansion OF the Currency
That VIII Result From
Currency Bill.

NEW YORK. March u.-Henry Clews,
I'm his weekly financial review. says:
Wall street has not been in very buoy
ant mood during the past week, the rea-
sons being not very difficult to discover.
Monetary conditions are untaVOrable to
the buying of stocks, and this factor,
coupled with unfavorable developments in
the industriais, has contributed more than
any other to heSitancy in the stock mar
l1et. The professional element Is gener-
ally bearish. and neither the big opera
tors (many of whom are visiting the
South for recreat1On) nor commission
houses representing the public are TAX
ing an active interest in the market
There is little prospect therefore, of
any change until the money market as
sumes a more satisfactory outlook. April
settlements are approaching, and that is
always a period Of temporary stringency.
AT the moment, however, the money mar
l0et Is chiefly under the influence of the
expected refunding operations, which will
inevitably cause temporary arrangement.
The recent unusual expansion in bank
loans is, no doubt, largely due to prep
arauons for this event. especially as in
terror banks which expect to increase
their currency output, have been larger
borrowers al this point 1t IS true there
has been considerable expansion of COM
mercial loans owing to business activity,
but TINS does not account for the large
Increase OF loans since Jan. !, and stock
exchange operations have been on a linn
tied scale. AS the preparations for re-
funding may continue for d further Pc
money market until these and the April
settlements are safely passed.
In a few days the currency bill will be-
come law. and the banks win complete
their preparations for
EXPANSION OF THE CURRENCY.
We are not among those who expect
any huge initiation out of this operation.
Some parties profess to see an addition
OF 5000, 600 100 or $500 900 or over TO the
currency. Such talk is highly injurious,
and can only harm those who believe 1t.
Any accurate forecast of the amount of
new currency is exceedingly difficult. 1t
Is possible that government bonds may
rise to a point where banks would pre-
fer to sell rather than take out circula-
ton. The privilege Of issuing notes equal
TO the par value Of bonds will permit an
Increase OF over $500 Geo. The effect of
the return of bonds pledged for public
deposits in the banks can hardly be es
titnated, but ii would be considerable. as
the banks now hold about Sll0,G00,G00 of
government funds. There are other OPP
eTations OF technical character which
will add to the circulation, making an
increase which a safe estimate would
place at about $l0OUOO,0O0. This Is a mod
crate expansion, not sufficient on which
to place any great speculative operations,
but quite sufficient to act as a preventive
of undue stringency and as moderate
stimulus S., to business activity and specH-
latlon. The passage of the currency bill
Is not likely TO have any pronounced eff
feet. II is simply formal establishment
of the peoples will; It insures the gold
STANDARD. but does not stop the endless
chain or give us a scientific banking cur
renoy, the struggle for which in congress
should be renewed with fresh energy.
CREDIT BAROMETER.
The new 2 per cent government bonds
should be christened United States con-
soils. especially as they make so favor
able a comparison with the English con-
soils, which bear 2% per cent interest and
are selling at lO05s, whereas the United
States consols are per cents and are
now selling at 107 before issued, and are
in considerable demand at that price
There can be no better barometer OF the
high credit of this nation than this show
ing. No other nation has ever before
been able to float per cent bond at
100 This Is certainly a proud achieve
ment for this country.
Aside from monetary influences and
weak spots in the industrials. the condi-
tons continue favorable and warrant
steady hopefuiness regarding the future
There is no abatement of trade activity
and the prospects are that no setbacks
of consequence need be expected for
months to come. OVertrading Is not vet
in sight and buyers are often more con-
cerned about deliveries than prices. The
presidential election is approaching and
will be a preteXt for delay among ti1nid
souls; but 1t is certain TO be a much less
disturbing factor than usual The iron
situation is eminently satisfactory, and
MT Sarnegie has taken the pains to
experience. Railroad affairs are also in
good form, despite occasional cutting on
-pOuHu gram rates. Ine roads
taxed TO their utmost with mixed freights
on which they are for once
SECURING PROFITABLE RATES
We cannot repeat too often that in orr
belief the railroad shares offer the ele-
mentS of safety and profit combined in
q larger degree than any other class OF
investment. OF course discrimination Ia
needed in buying, for not few are
much too high to be considered bargains:
but some OF the properties which have
recently become dividend-paying, as well
as those which promise to be, deserve in
VeStigation. Both Western and Southern
roads are doing remarkably we'll the lat
ter being assisted by better prices for
cotton and the rapid industrial deveIon-
ment of certain sections
The Transvaal war has ceased to be a
factor Of any consequence. now that an
prehensions of further disaster to Great
Britain are removed. When the war Is
over. regeneration ought to follow more
rapidly than is usual in such cases South
Africa is peopled by vigorous races and
there will be no lack of British canItaJ
ready for developing its resources as soon
as peace and order are established A
period of political friction NAV follow
but the United States will certainly be
called upon to supply larger Quantities Of
machinery and food products: and as
British methods of taxation are likely to
he less onerous than the Beers the min