The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-14
IN OPTIMISTIC MOOD
REPORT OF PROGRESS IN RAIL-
ROAD CONVERSATIONS HAVE
STIMULATING EFFECT
IMPROVEMENT IN SITUATION
Money Rates Are Relatively Easy
and LoanabIe funds Seem Ample
for Presentt Requirements
Gold Imports Not Lively.

In his weekly review of the financial
conditions in Wan street Henry Clews
says:
Wall street was suddenly lifted out of
It's peSsimistlc mood by renewed reports
of progress in the vast railroad combi-
nations which were calculated to have
stimulating influence upon values and
speculation. These plans were inter-
rupted last spring and summer by a Sc
ries of familiar drawbacks. as wei as
by the fact that prices were then too
high to permit of any further success
1ul upward manipulation. The large in
terests then III control accepted the sit
uation; they stood together in prevent
ing any rapid decline. and finally awaited
themselves as far as practicable of the
advantages of lower prices. Stocks are
now more highly concentrated than in
any previous period of our financial his
tory, the big men having accumulated
them for the sole purpose of carrying
out their vast schemes of combination
which seem TO be an irresistible outcome
of modern tendencies. 1t is folIv to UNI
derrate the Importance of such tranSac-
tons They will Enthusiastically add to
the stability and profitabieness of rail-
road Investments, and they may be used
TO infuse fresh life into the speculative
situation, but outsiders must accept the
various reports with caution. and expec-
tations of a prolonged bull movemer
based on these developments do not
seem iustifable when such large
amounts of stocks are held awaiting buy
ers, as is now the case Whether it is
the plan or not of the market leaders
to inaugurate new upward movement
remains to be seen. Recent market OPP
erations suggested that scme parties
were endeaVoring TO accumulate stocks
as cheaply as possible, and if this means
the entry Of a new bull element into
the market We may expect increased
activity. Just now the situation is con-
siderably mixed Prices have declined
Is to 50 points since last May, and not
q few are of opinion that the effects
of the corn crop loss and fears of tight
money have been about discounted that
railroad earnings are likely to continue
at a high level, and that there is no good
reason for allowing pessimism to eat
away prices any longer. On the other
hand, there are a good many who cling
to the conservative position, pointing to
the poor earnings of many of the indus
trials and the possibility of a trade reac-
ton, to say nothing of their unwilling
ness to assist in carrying a burden of
high-priced stocks which the bearers are
anxious to distribute. Which of these
two sets of opinions would prevail if
the market were left to itself, it is diff
cult to say. At the moment it is of
more consequence TO watch the opera
tons of the market leaders. If these
are on the long sidestw may look for
more active market, in which we should
advise profit-taking on sharp advances
The monetary situation shows improve
ment in some respects Crop demands
have about reached the maximum, and
within three or four weeks the return
movement of currency should begin,
though one or two unfavorable bank
statements in the interim should cause
no surprise. Money rates are relatively
easy and loanable funds seem ample for
present requirements; three months of
liquidation in the stock market having
contributed materially towards ayerting
Stringency during the crop moving
period. 1t is we'll TO bear in mind how
ever, that little relief can be obtained
from gold imports in event of rates work
ing upwards here The financial crisis
in Germany is by no means over, and
the strain in monetary circles over there
is still intense. Germany is just now
passing through a period of retribution
for the reckless speculation in indus
trials, and the innlIInerable instances OF
rotten financing which have brought a
lot of German promoters under the ban
of the law and cast a blot upon German
integrity that will require some time to
effaee. London is also in a mood of de-
preston resulting from the Transvaal
war, and with new loan in prospect
is not going to permit any depletion Of
it's gold supply. Evel Paris, alarmed
at the decline in copper, which is 4 ia
vorite article of Speculation with the
French, is now unwilling to part with
gold. Other influences also are adverse
to gold imports just now, such as the
limited offerings of cotton bills, the re-
turn of American securities and the in
VeStment of American capital IN Europe,
of which the buying of an English to-
bacco company for several millions was
recently a most suggestive example. The
outlook for the local money market,
however, is more assuring than for the
past two months, and continued ease
may be expected unless speculation in
terferes. Quite possibly the new Great
Northern Northern Pacific arrangements
when completed will release large sums
which have been locked up in that
scheme for the last six months, and, If
SO, this will add materially to the ease
in money. This latter deal will I'M
doubtedly De a relief to the interests
who have been carrying these stocks for
so long a period, but for the present we
refrain from expressing any very posi-
tive opinion as to it's effect upon the
market. Manipulation may carry values
higher in onsequence of these plans, but
we fail to see any genuine bull argu-
ment in these developments The sentt-
ment of the street is now bullish, partly
as a result of this transaction and partly
as a reaction from the downward move
ment of the last few months. We reit-
crate the opinion, however, that this is
only good trading market. Buy when
very weak and sell when very strong.
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