The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-07-08
DULLSTOCK MARKET
HOT WEATHER OF PAST WEEK
CHECKED ACTIVITY ON
CHANGE
BANK RESERVES ARE LOW
Railroads Are Enjoying the Most
Legitimate and Substantial Pros
Derity of Amy of the COun-
try's Interests.

NEW YORK, July Henry Clews. in
his weekly review of the stock market
says:
''Torrid heat, absenteeism, the holidays.
ana firm money all combined TO cbecJ,
activity on the stock exchange AS a
result there is little change in the situa-
tIoh from week ago. Probably tho
quarter in which caution is most needed
just now is in the money market. Loans
are greatly expanded and bank rasery4s
are low. The latter may rise for a pc
ROD after the July disbursements. but no
great relief can be expected in this di-
Iectlon' and the outlook for strengthening
the reserves through contraction of loans
IS not very promising. On the contrary,
there Is every prospect Cf prolonged
and active demand for money at hrmer
rates than have ruled in the past I'm
usual demands for funds to move the
crops are already a practical certainty;
and If business during the coming au-
tumn takes on the activity that IS now
expected, the banks will be fully taxed in
meeting legitimate requirements. Ordl-
narlly we can calculate upon gold inn
ports IN the rail- months; but this year
that source Is somewhat doubtful I'm view
OF the strained conditions in certain OF
the European financial centers Depres-
SION has set in with considerable force I'm
some parts Of the world. which must I'm
u degree be reflected In the New YORK
market. ANY important addition to the
regular worlds gold output whether
through the klOudike or from South Az
RIGA, viii Of course be beneficial; but this
IS altogether prOblematiCal The outlook,
therefore, is for q firm money market.
This, 1t should beFnoted, 10 not favorable
to bull campaign Of great dimensions.
The resources of the banks are already
so fully occupied that they cannot be en-
ployed with much greater freedom I'm
speculative operations Were prices not
so nigh, or had some compulsory Uqui-
dalton taken place the chances Of an
active bull market would be much better.
ION the other hand, general conditions
eXCeDtlOndllX /
high profits are still abnormal, and 1t
Is dividends or possible dividends that
make the values Of stocks. American
railroads are still enjoying most cEcep-
tlonal prosperity. They are not only
carrying IecOrd-breaking tonnage, but
rates have been established upon a
profitable basis, and Increased dividends
are being earned on some roads, while
others, which never dreamed Of dividends
III this generation, are at least coming
within sight of that desirable and COM
enjoying the most legitimate and sub
Stantial prosperity Of any interest In the
country, and if the quotations OF many
seem absurdly high they are really SELL
ing on their merits much more closely
than the majority of industrials. Tho
community Of interest" plan marks a
distinctly new era in the railroad world,
and it Is that which is adding so great
ly to the earning powers Of the railroads.
crop reports are generally Of q favorable
character, Notwithstanding the extraOr-
binary weather Of last week. The wheat
crop Is practically safe, and some esti-
mates run as high as 7OOOJO0OO bushels
While this seems an exaggerated figure,
there is little doubt that the crop will be
{ the largest on record. General business
conditions are certainly satisfactory, and
there IS every prospect that the last six
months Of 1901 will be as good as the same
time in 1900, II not better. Recent bank
failures have induced some caution in
banking circles which was emncntly de-
sirable. No general unsOundues5 can be
detected, but these are warnings OF
speculative excuses and weak spots that
should not be overlooked. Quite likely
we may have similar experiences later
on. these being times when undue risks
are taken. When credit contracts col
lapse follows, and hencefo,th the banks
! are likely to be more discriminating I'm
their collateral.
For the present we anticipate a trad
ers market. AS we have Just said,
conditions would be especially favorable
to bull market were 1t not for the
limited resources Of the banks. This Will
impede general activity, though 1t may
not hamper the operations of individual
cliques interested in the manipulation Of
their specialties. Strong efforts TO mantp-
ulate certain stocks may be expected
within the next few months. and when
activity is renewed the market will repay
close watching"