The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-11
MARKET is STRONG
PROGRESS OF NORTHERN PACIFIC
DEAL HAS BENEFICIAL
INFLUENCE
SITUATION IS FAVORABLE
Good Business Conditions Reported
From All Sections of the Coun-
try-Bank CIearings Phe-
nOmenalIy Heavy.

In his weekly report of the condition in
Wall Street Henry Clews says:
The stock market has shown much
strength during the past week, the adj
vance being well distributed and well sus-
tanned. The chief stimulant was power
full manipulation, based upon progress in
the Northern Pacific deal Such compli-
Gated and wide reaching arrangements
as this particular one cannot be carried
to completion without friction and delay;
but if all reports are true, very substan-s
tial progress has been made, and the
negotiations may be announced as COM
peteG at any time. The interests inVolv-
ed in this transaction are so vast and
JnterWoven that ever since the hitch
which developed last spring there has
been a firm belief in the public mind that
the rival interests whatever their ambi-
tions and disposition could not afford to
permit an open rupture which would
have proved ruinouS to both sides and
created general decentralization. Hence
| the Street" has firmly believed in an
| eventual settlement of differences after
| both sides had consumed enough time for
| skir1nishing and reflection. OF course the
| Intervening period of doubt was unfavor-
| able to a bull market, and now that this
| element of disturbance is likely to dis
| appear the speculative situation will be
cerreSpOndlngly cleared and improved.
While conditions are less favorable than
| year ago, and there are weak points
| that will bear watching, yet the s1tSatlon
| at the moment seems more favorable to
| an upward than a downward movement.
| Stocks are still concentrated IN strong
| hands, and holders are not willing sellers
| at present level. No doubt the strongest
| Incentive to operations for higher prices
| is the prev alence of general prosperity
From nearly all sections of the country
come reports of continued good business
| conditions Even in the drouth stricken
| districts business is better than expected,
| owing to other offsets, and no complaints
are forthcoming. Bank clearings are
| phenomenally heavy, having for several
J weeks exceeded last years heagy totals
| by Is ITO 20 per cent and over. Railroads
are often overburdened With traffic. and
earnings continue to show gains of 10Ql5
per cent over the handsome gains OF last
year. On almost every side there are
the most positive evidences of great In
dustrial activity, and as yet there are no
important signs of cessation. Good judges
expect the boom in iron to continue for
T from present high and profitable prices
Would simply bring in new lot of or
ders that would keep both new and old
capacity fully employed.
ly what is called prosperous, is IN petter
condition today than for long PERIOD,
and so the list could be extended In
few cases there are indications OF pro-
duction overtaking consumption, but
these are exceptional. Prices in general
are very high, and as in the case of iron,
Slight rGC0SSlOnS Will QuIChly IGNlNc oily
abatement in demand. Duns Index figure
is now at 977, which Is about the nigh
est of the last ten years. 1t IS remark
able but true that this high level OF prices
is entirely due to the failure OF pro-
duction to keep pace with the conSunlp-
ton. Speculation has had very little to
do. thus far, with advancing prices, and
it is questionable If we have ever Witness
ed such a wide and continuous upward
M ovement in values relatively free OF
speculation as mas been experienced dur
ing the past five or SIX years. me Dues
ton is, will the present wave of prosper
ity eliminate in speculative outbreak,
or will it recede in a quiet and orderly
fashion? The latter course is to be de-
sired; but it will be against all pre-
vious experience if we escape dangerous
speculative excuses.
At the moment the most unfavorable
feature in the market is the foreign sit
uation The European markets are IN
an exceedingly sensitive state owing to
well understood causes, and with another
British loan in prospect American stocks
are quite likely to be sold for shipment
to the United States in an advancing
market This of course would not be IA
forable to the foreign exchanges. Fhe
backward for a period, and increased
exports for this staple would tend TO
discourage gold shipments. The local
money market is not entirely free OF
danger. bank reserves being low and the
return of currency from the South being
tardy, owing to the backward movement
of the cotton crop. Some relief VIII be
afforded by Secretary. Cages offer to
buy bonds and by the increase OF money
in circulation, but the treasury is still
disturbing feature, locking up funds
collected by excessive taxation: Congress
seems to do little during the coming
session; it could at least earn the good
will of all parties by cutting off super
| fluous taxes.
The market has had good chance
and is exposed to setbacks unless firmly
supported by its present leaders. On all
good rallies we advise profit-taking. The
insiders have stocks to sell and the long
pull is not as safe as a year ago. There
will, however, be plenty of money to in
vest after January 1, and if a bull cam
paign is on the market may be well sup
nnrfed until that period, If not later.