The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-09-02
TRADING WAS GOOD
PRICES DISPLAY CONSIDERABLE
STRENGTH AND TO 10
FONTS HIGHER
OUTLOOK IS PERPLEXING
Lower level of Foreign Markets Is
Likely to Stimulate Shipments
to This Country and Re-
salt in Lower Prices.


in Wall street, Henlv ClewS says;
As irtinated in these advices we have
had a Cuod trading market. Prices have
displayed considerable strength ar periods
and are now to IL points higher than
when The disaster to the corn crop was
first kn5N},. The advance, however. has
not been Cue to any outside buying; it
was attributed Cc manipulation and nat
ural reaction. Developments connected
with the steel strike also tended to re-
store confidence; for it vas evident that
the managers of the steel company were
not going TO surrender control OF their
property 20 the unions; a point of vastly
greater Importance to the steel Industry
than the temporary losses from the shut
down that could be subsequently recov-
cred. The strike still drags along. al
though the mistake and failure of Shat
fer and his followers are foregone con-
cluSons
The outlook for the stock market is
somewhat peTpleXing. It rs certainly not
so favorable as a year ago. We are up
against crop situations which, If not
discouraging, is certainly less encOurag-
ing than last year. We are assured of
good wheat and hay crops. The former
is esDeotaiiy important; for owing to the
shortage in Europe, we are sure Of a good
export demand at satisfactory prices.
This means a high degree of prosperity
for the wheat-growing regions, good
hauls for the railroads and a favorable
effect upon our foreign trade balance
This is the best that can be said of the
crop situation Prolonged drought in
some sections and too much rain in 9TH
ers have been anything but beneficial to
crops in general. The injury to corn is
already familiar. Late corn has shown
great Improvement during the last three
weeks, and crop estimates are being
steadily raised; but it is altogether too
early yet to place any fixed reliance on
estimates of yield, late CON being espe-
cially liable TO frost damage Should
corn escape frost and the weather con-
tinue favorable the remainder of the sea-
son, we might easily harvest a crop of
$40 600 TO 600 bushels; but the
frost possibility makes a very important
. if Fortunately the partial loss of the
corn crop Will prove in no sense a ca
lamity; but in spite of favorable offsets
it viii enforce economy among large
numbers Of farmers, and OF necessity be
. 4 check upon business activity. It's eff
fects viii be felt among merchants, by
the railroads and in the provisions mar
Iets during the fall and winter months,
rather than now. Another important
crop is feeling adverse weather condi-
lions. and that is cotton. Zoo much rain
in some sections and too little in others.
Texas, which raises between one-quar-
ter and one-third of the cotton crop, is
suffering rom a severe drought, and will
certainly produce considerably less cotton
than last year. The loss in this state
CIeNaSl VIII be partially offset by in
creased yield in other states but the
cotton trade is fully reconciled to a small
CT crop than last year by several hun
dred thousand bales. The diminution of
TWO such important crops as corn and
of prosperity, even if higher prices large
~ compensate therefor The country is
likely to be prosperous In spots and back
wards elsewhere. A good deal of talk is
heard about our prospective large ex-
ports to Europe. This is likely to be true
as regards foodstuffs, which Europe will
be compelled 10 buy from US; but rs re-
CARDS our manufactured products, which
have become such an important factor in
our export trade, it should be remembered
that both England and Germany have
been gong through a period of depres-
SION and lower prices lessening their pur-
CHASING powers and placing them in a
better position for Underselling us in for
elgn markets. The lower level of the
foreign markets is also likely TO stirnu-
late the shipments Of merchandise to this
country; hence the natural tendency of
our foreign trade would be towards small
ef exports and larger imports. or a grad
ual reduction of the abnormal trade bal
ahce which has been such a feature of
our prosperity during the last three or
Tour years. Much, however. depends
cotton ''--"
General business continues in good CON
oltlon and merchants generally -anticfna+e
season equaling last year in volume.
II IS noticeable. however that very few
eAPtct TO exceed last year, and there is
wholesome feeling Of conservatism in
mercantile circles. Railroad prosperltv
seems to 80 on without interr1Infion
cross earnings show steady SANS In spite
OF the large increases of the three an6
lOuf previous years. This is chiefly the
result OF better rates and shows the value
or harmony to owners Of railroad securi
TIES. AS a matter of fact many OF the
ROADS are carrying a smaller tonnage
IMAM last year, but they are earning a
IaIr profit as result of reasonable and
stable rates.
We might have had a September boom
had It not been for the adverse effect
OF the strike and the corn damage Thaso
destroyed all bulhsh outside sentir,e-,+
ana left the market entirely dependent
upon inside support, which it has had
III unInSJakable fashion. There is some
talk that the big men intend to p11t the
market higher. With stocks so closely
held IN their control it would be foot
Ism to deny their ability 10 do so. Bat
natural conditions are hardly in favor
OF higher prices at this time In adds
ton to the reasons cited above the money
market IS likely to be a serious obstacle
TO any bull campaign. TIE reserve went
down last Saturday to SIS 100000 com
pared with coo year ago. AMI is
likely to be entirely exhausted before the
return movement begins in November.
W eStern banks have considerable depos-
ITS IN the reserve centers which they
VIII soon draw upon for crop purposes
This week statement Will probably show
further decline in reserves. Bankers
seem perfectly confident of their ability
to take care of ordinary crop and bust
ness requirements, but any active spec
uIatlon in stocks would rapidly produce
a strlngency that would AUTOMATICALLY
impede bun market. All discussion of
gold imports and bond purcra es lust now
IS problematicaI. These resources might
oe available and they might not High
prices would use UP the available sl1pnlv
OF FUNDS more rapidly than low prices
Iaklng all the facts into consideratf o,
natural conditions are not Just nov, in fa'
Vor of higher prices Forced manin,,la-
ton may raise the market to a highe,
level, but under such conditions onera-
tons should be conducted with llnYsna1
care, and We should advise selling on tha
rel