The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-10
Stock MARKET RECI)VERS
OPERATORS AND OUTSIDERS ARE
AGAIN IN THE sPECULA-
TIVE ARENA
VALUES LIKELY no GO HIGHER
Good Crop Prospects and Prosperous
Conditions Are Important Fac
tors in the Present
Advance

NEW YORK, June 9.-In his weekly
letter on the New York stock market
| Henry Clews says:
! The speedy recovery in the stock mar
! ket since the panic is an exhibit that is
| unique. The upward impulse received
| the support of leading local operators,
| and outsiders are now again in the spec
| uiative arena. Orders from the interior
| centers have been on large scale, but
| not in proportion to the city operations
| In some of the more active stocks prices
! are approximating the highest figures
| touched before the ante-crisis stage OF
! the Doom; and the expectation has appar-
! entity taken hold of the market that val
ues are destined to a still higher level
Two main causes lie at the root of this
| extraordinary upward drift of prices
! the settlement of the Northern Pacific
! contest. and the indications that further
! plans are being Matched for alliances be-
| Tween competing systems of railroad
Ihere is yet wide range of railroads to
| winch these cooperative connections may
be advantageously applied; and the ia
Vorable reception extended to the new
method of abating railroad competition
by the investing public, is calculated to
develop deals of this character and cause
a prolongation of the boom The specuIa-
tive interest is not slow to appreciate the
bullish significance of this factor IT Is
suggestive of an important demand from
railroad capitalists, and of the temper
airy Withholding of a considerable guam
tlty of stocks from the market by the
promoters of the deals as well as by
those who are specializing on the neces-
sites Of that class of buyers. This as
pect of the situation is full of speculative
interest, and the interest runs wholly In
the direction of still higher prices For,
in the first place, the contemplated CO.
operative deals are intended to improve
the earnings of the railroads and appear
quite likely to have that effect In the
next place the initiation of those deals
VIII produce concurrence of urgent buy
ing and scarcity of certain stocks
And, in the next place, this movement
Will be backed by capitalists and bank
ers OF large resource. Indeed, it is not
easy to say what dimensions this new
method of regulating railroad manage
ment and changes may not reach. AS
an element in speculation, however, there
are certain possibilities which deserve to
be carefully considered.
1t lies IN the power o the speculative
contingent-Whch now includes men of
greater strength than ever before-to run
up prices to an excessive pitch against
those who are conducting ''harmOny
deals; and the question arises whether
III = at way. those deals may not w ar
rested and their execution postponed I'M
til there has been some important reac-
ton in prices. Undoubtedly the intrin-
slcally improved value of the securities
OF roads thus brought into cooperative
relations enables the promoters of the
deals to pay relatively high prices for
the stocks they need to buy; but there
is limit to what they would really
need to pay; and, when that point was
reached, some very exciting situations
might be developed and crises such as
we have lately witnessed might easily
enough occur as a result of an over
bought market by the public which
represents the strong holders selling out
to the weak ones Whilst, therefore, the
present position of affairs is again Sug-
geSttve of bull tendencies, yet it is beset
with possible complications and surprises
that counsel keeping sharp outlook and
ample margins. Controlling interest YER
sus intrinsic values may be stated as the
real cause that precipitated the great
break in the Wall street market on blue
Thursday" Which was almost as bad a
ono as that of Black Friday
1t is hardly necessary to note the hope
full conditions connected with the crop
prospects, the prosperous condition OF
home trade, the abundance of our ex-
ports and the closing of war conditions
in the Philippines. The present range of
prices much more than discounts any
thing warranted by conditions of that
character The all-cOntrolling factor Is
the extraordinary railroad situation and
especially the necessity arising there
from for the procurement of large
silent purpose. Therein lies the force
and direction of the market. It has Gre
ated.a set of momentary conditions ex-
traordinary conducive to speculation and
has already produced an elevation Of
prices far above the normal or what can
be expected to prove permanent. Yet. n s
matters now stand, it is quite possible
that values may rise still higher and
some moderate time to come. Three per
cent return upon common stocks of rail-
roads cannot be counted as satisfactory
for a permanency, and investors may be |
expected to turn their attention later on
to more remuneratiVe investments.
The present market affords great ia |
ciIlties for getting long on stocks, as
those who now hold them have them for
sale, but those who buy them at the |
present range of prices [ advise to get
out with great celebrity on the rallies"