The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-08-26
WALLSTREET REVIEW
STOCK MARKET Is UNDER CON-
TROL OF VERY CONFLICT
ING INTERESTS
STOCKS HELD BY FEW PERSONS
Certninty OF Another Good Year Of
Exports the Most Encouraging
Feature in the Whole
Situation.
In his weekly review of the conditions

In his weekly review of the conditions
in Wall street, Henry Clews says:
The stock market is under the control
OF very conflicting influences Owing to
developments, such as the strike and
corn crop failure, which were entirely
beyond human foresight the bull move
ment' received a setback from which
1t has not yet fairly recovered. Prices
scared to Sky-rOcket attitudes in May
and June, and the receSsiOns which have
since followed have not brought securi
ties down to near the bargain level, not
d few favorte stocks still being quoted
at very high figures from the invest
ment point of view. Values continue I'M
der the influence of the community of
interest idea, which in one or an
other IS expected to make railroad secur-
ties safer and more profitable invest
ments than heretofore. Unquestienably
the execution Of these ideas has had
most important bearing upon values.
No force equal TO Ii has been witnessed
in a decade. but it is time to call halt
to see If these expectations have not
been exaggerated 1t will al least be safe
Tor US to wait Tor period that We may
learn more as to the stability and work
ing Of these arrangements. Nothing will
be lost by allowing time for these vast
experiments to demonstrate their stay
ing powers. At present stocks are large
~ concentrated in a few hands whose
relations are SO close and interviewer
that harmonious actions are impera tive
however be fairly scattered and the
community Of interest plans Will be Sc
verely threatened by new forces anu
new riValrieS that are now necessarily
repressed. Much satisfaction is now OBJ
tained from the continued gains in rail,
road earnings. and the expectations of
increased dividends which such reports
naturally stimulate. II should not be
overlooked however. that these gains
are derived more from the increase in
rates than the increase in traffic. For
#saHr
plenty in sight; hence conditions are par
ticuiarly favorable for a maintenance Of
rates, and in event of lessened business
activity We VIII be much less exposed to
disastrous rate wars than formerly It
Is folly to underrate the value of the
community of interest idea. 1t marks
new era, and a new level in railroad
stocks; but that is no reason why we
should perpetuaily entertain exaggerated
ideas OF its value, and the sooner We
md its real and permanent worth the
better for all concerned. At present
nothing but pure expectancy is sustain
ing certain stocks at a 3d3l2 per cent
basis. When they come down to a 4G412
basis they viii be nearer their true level
The course of the money market from
now on viii be interesting. The surplus
reserve last Saturday stood at SIS, A., 800
compared with S2O,05l050 a year ago. The
demand for crop purposes will soon as
SeTt itself and we may look for a period
OF declining reserves until the end of Oc-
tOber. The reduction of the corn crop
WILL nave llLIlA erect upon the demand
for money. the higher prices for corn
and the abundance of wheat Offsetting
the leSSeuel Inquiries from that source
General business promises to be fairly
active; though 1t is quest enable if it will
exceed last years in volume. The loss
from corn damage and the strike will m
evItably cause some dimtnutlon of bust
ness in spots, even if the country as a
whole does not suffer from these draw
backs. Ea1ke s are generally anticipat-
ing good demand for money at firm
rates. Supplies, however. are not suf1-
Gent to permit any active stock Specula-
ton. A rapid bull market at this time
would soon meet an insurmountable OBJ
stacle in tight money. The treasury re-
ceipts continue larger than expenditures,
and this awkward movement Is likely to
continue until legislation provides some
further ell tailment of revenue, or Secre-
airy Gage buys more freely Gold is
coming IN with some freedom from the
KICndike. A favorable feature was the
weakening of foreign exchange, owing
10 lar sc grain exports and renewed for
eign buying. of American securities. If
these latter movements continue with
any freedom we shall soon be again i'm
porting Soda movement that will be
facilitated by the gradual resumption of
the South African mines. 1t is quite evil
dent that the Boer war which has had
such a depressing effect upon the London
market. is practically over, and the 3 it
ish army is now doing little more thans
police dLty. Alre ady London is getting
into d happier frame of mind, and a bet
ter feeling exists in South African Sc
curities. which may easily extend into
other spheres. There is an evident eviv-
al of interest in American securities in
London. and 1t will be interesting TO
watch its staying quail ties.
The most encouraging feature in the
whole situation is the certainty OF an
otner good year OF exports. Europe seems
to- have shortage of 100000, 600 bushels
of wheat and the United States a surplus
of about Sg90Oe.0o0 bushels. This insures
us a good price for our wheat and a
good haul for the railroads. 1t also
strengthens the probability of gold i'm
ports, for Europe is comparatively bare
of American stocks and cannot return
them in considerable quantities.
We are still in the midst of a traders
market. The big holders and large oper-
ators are absent and seem content with
keeping prices pegged at about the pres
ent level Public buying is conspicuous
FOR It's absence, and the outlook Is not
for any special buoyancy until the mon
etary situation is more favorable At
the moment We advise profit-taking on
all sharp rallies.
The marvellous industrial development
of the United States in recent years is
not thoroughly appreciated by the av-
eraSe American so well as by Europeans,
upon whom presses with irresistible
force the expansion of our foreign COM
merce, as evidenced by the European
press clamoring for protectin against the
invasion of even their home markets by
American manufactures and for combi-
nid ION tariff walls against US. Recent
he-ires published by the treasury depart
ment at Washington, giving our coal
production during the past fifteen years
are as surprising as they are crafty
mgi and coal is the very soul of indus
ulal life. The United States in 1856.
produced lt0.664, go tons of coal and in
1850 the production was 245, 422. 600 tons.
an increase of very nearly 1850 per cent
In hfteen years. while Great Britain in
creased her coal output during the same
period only about so per cent-frorn 157
9IS.Ov0 tons in 1856 to 225. Isl. ESQ tons in
1yJ The foregoing figures are their own
most eloquent heralds.