The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-07-01
CHICK D STOCK MARKET
FAILURE OK SEVENTH NATIONAL
BANK EMPHASIZES THE DE-
STABILITY OF CAUTION
SPECULATIVE SPIRIT STRONG
General business Conditions Are So
Satisfactory That II ~ Hard
to Resist Tcmpta-
tiOn

Henry Clews weekly letter on the con-
ditions Of the stock market SAYS:
Inc STOCK market received a check this
week from unpleasant developments with
local bank that plainly emphasizes tho
deslrabllity Of caution I'm speculative
operations. 1t is just such weak Spots
as TINS which may at any tim bring on
dlsagreeable consequences. At the MOI
ment there are two other factors also
not altogether favorable to a bull cam
palgn, In spite Of the many other salts
factory conditions. These are the Ger
man financial crisis and the local mon.v
market The crop and fall trade demands
are only six weeks or so distant ana it
Is evident that unless the bank re-
serves are increased no very extensive
speculation in stocks can be carried On
without mourning a stringent money
market. As soon as July dlsbursc-
ments are made some relief viii DO
afforded, and there is no telling how far
the big holders Of securities may bs
able and willing TO ala the money
market. Large sums arc stu known
to be locked up ia syndicate operations.
and the release of these amounts would
be favorable to ease in July ami AuE.s-.
The second consideration tie crisis I'm
Germany. is entitled 90 mor1 weight than
it receives, Germany Is suffering acuteiy
from the consequences of Over-euruuIL-
ton in industrials daring The last two
or three years. Imitation was the order
OF the day and reaction followed Ia-
evltably. The German bank failures
show Il very unsatisfactory condition ~
affairs and it is by no mems certain
that the end Of these disasters has yet
been seen. In these days of close inter
dependence between nations depression
In one quarter is quickly felt in others
New York cannot escape the influence
Of trouble In Berlin in fact our very
strength makes us the first outside point
from which TO seek relief The ease Of
money. however. IN the European hnan-
cial centers L. somewhat rCassurng and
fortunately Europe has few o. our Sc
curtics 10 return.
As for the rcceu nj bank troubles n New
York they Go not show any general au-
soundness, but they DO trin2 90 the sur
face speculative eXcesses of the sort We
are specially exposed uo i'm these times.
Impudence and OverrOuiidouce are tie
greatest dangers at present General
business Is so satisfactory and prosper
ity so general That II is hard 10 resist
the unusual temptations. The specula-
tive spirit is thoroughly aroused and
needs restraint ana just such expert
ences as last weeks. unpleasant as they
may be, are needed 10 keep speculation
within bounds. For tho present we add
wise against indls u m nate buying TIE
money market is exposed to naulp'ajiyo
rates OF interest until after the July dis
bursements Added TO this. the coming
week will be broken by the holidays 90
the outlook is against any bIoyant acc
tivity.
Although the volume Of transactions
on the exchange has very largely de-
cined from the figures reached at tho
most active stage II the boom, yet tho
market has lost little OF it's intrinsic
strength 1t Is now more tempting for
the bears" to take the held md occa-
sionally they undertake ventures which
produce transient reactions. Gradually.
investors and temperate SPECTATORS real
lie more and more fully that the last
eight months rise IN the prices o. rail-
road stocks has been something more
than an artificial imitation. The follow
ing statement of the gross earuiug5 "
the first five months Of the last six years
reveals the true cause OF the rise In mar
ket value of this class Of investments:
Year. Miles. Gross Earn
1856 OBSERVATION-DISCLOSURES. .... Slsg7OAOOO