The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-07-22
WEEK IN THE STREET
HEAVY LIQUIDATION SHIFTS
STOCKS FROM WEAK TO
STRONG HANDS
MONEY MARKET IS RELIEVED
Most Important Hindrance to In
ward Movement at Present
Is the Big Labor Con-
trOVerSy.

In his weekly review of the conditions
In Wall street Henry Clews says:
Inc situation in Wall street has shown
I4uch Improvement during the week
HeaVy liquidation shifted stocks from
weak into strong hands, and resulted I'm
an important contraction i'm loans and
consequent relief to the money marker
me corn crop damage. as we showed "a
week ago, was much exaggerated and it
Is generally acknowledged that the crou
SITUATION, as a whole, promises TO be sal
lsIactOry. Nevertheless damage rumors
are likely to affect the corn belt roads
at any time, and cause violent fuct,I9-
lions. Better prices will amply repay
any damage to corn, of which there viii
De no actual scarcity; and wheat, on
Which we have bumper crop, is sure
70 De exported largely for filling foreign
deficiencies The crop scare Therefore
Is thing to be expected though liz
would cause no surprise If much of the
damage We're repaired as the season
progresses The event of greatest i'm
pOrtance, however, was the settlement OF
the Northern Pacific dispute and tho
establishment Of harmony between con.
hicting railroad interests through the
efforts of Mr. Morgan. With easier
money, with passing of the drought and
with harmony restored between the bile
railroad magnates, the chief obstacle 90
bull market has been removed The
most important hindrance to the upward
movement Just now is the labor cOntrO-
VerSy, which, should il assume serious
proportions, mignt easily check the
present wave of business prosperity and
unsettle general confidence The hope.
however, is that wiser cOunsels will pre-
vail.
the recent break in the stock market
enabled many of the big men 10 get
back their stocks which had been sold
at higher prices. The semi-panic of
last week came through weak holders
being compelled to EQuidate and the
stocks thus sold went into strong hands
All the big cliques are now arraycd iu
nd II fFfa ton /.
bull side, so, for the coming week az
least, the manipulation will be in the
direction Of higher prices.
Among the larger local operators and
at the Interior cities large measure of
liquidation has been accomplished within
the last two weeks, and the most i'm
portant holders appear to be now the rail
road magnateS who have invested VeIy
largely in connection with cooperative
deals yet have been able to realize only
to limited extent. The interest of this
class lies very decidedly in the maiuteI-
ance OF prices, and their supporting abil-
ity is of course very important. whilst
those who have liquidated may be expect
ed to contribute their influence toward
lower prices. The current relations be-
tween the speculative interests are there
fore not unlikely TO develop a good d. al
of active campaigning between the Cd
pOsite sides.
Each side has strong factors in it's SUD-
port The bulls" have with them some
of the strongest and most courageous
railroad capitalists and bankers in the
country and can control any amount Of
money ~-ey may need They are backed
by the most influential financiers, and
hence possess the advantages Of pow r.
tul prestige. They are supported by a
railroad situation such as has never OK
listed before in the history Of the country.
The gross earnings Of 176 roads, for the
first half of 1901, show an increase Of
$61,5S023l. or of 1913 per cent, over the
like period of 1900; or, comparing the last
half year With the same months of 1897,
the increase is $3.50, 10000, or 81 per cent.
This immense increase in the intrinsic
value of railroad investments constitutes
a bulWark of strength for those securi-
ties. Furthermore the growing value Of
these stocks is the most conclusive evil
dence of the expanding trade and DrOSpeT-
ity of the nation. Another factor sup
porting the 'bulI' side of the market is
the remarkable increase in the volume OF
currency under the operation Of the new
currency law, the gain since March, 1909
having been S2I2,Ot00CO.
The other side Of the market however.
presents some uncertain aspects. -
crop prospects are somewhat below early
expectations, the corn and oat crops ha#-
ing already. suffered serious injury al
though it is not impossible, as said above
that the loss may be in some measure re-
paired. The unrest in the labor market
is having a disturbing effect upon public
confidence. 1t would seem that the
unions have, by concerted understand
Ing, resolved to make the great trust
movement the occasion for Strengthening
their position and subjecting capital to
demands which appear to the pubic as
somewhat unreasonable. The liberal ct
titude lately shown towards the operative
classes, as a means Of conciliating favor
towards the great consultations, has had
the effect of emboldenlng some of lha
labor leaders. and the question has come
to be whether the capitalistic combine
tons shall be subjected to vast consoIi-
dated labor monopoly. The strike against
the steel corporation ds the boldest chai-
lenge with which labor has ever con-
fronted capital; and it would seem that
the last thing that the trust can afford is
to show any timidity or evnce any dis
position towards concession to the present
arbitrary demand beyond the fair and
liberal spirit already shown. ANY spirit
Of Cancellation shown by capital under
present conditions can, from the very ma
ture OF things. have no other effect than
to stimulate aggression from labor, AMI
the recent large voluntary advances in
wages have undoubtedly had that result.
ComprOm Sc between the two sides rs i'm
possible; either one party or the other
must hold distinct ascs ndacy Of power:
and 1t would seem that we are Vergfns
upon the crisis which will determine
where the victory shall rest Whilst this
conflict rests IN the balance there can be-
no important bull stock market