The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-04-01
REVIEW OF WALL STREET
DENT SPECULATOR SHOULD
PREPARE FOR A TURN
BULL FORCES STILL CONTROL
Nearly Time for Stronger Influences
to Assert Observation-Disclosures
May, However, Go
Higher.

NEW YORK. March 81-(SpeciaI.)-
Henry Clews, in his weekly financial
review says: During the past week. the
stock market has shown a Wavering
tendency, both as to the course of prices
and the volume of transactions. The
movement still remains under the con-
troll OF the bull forces, and there seems
TO be feeling that the rising tendency
has not yet touched its maximum, but
some OF the leading speculative stocks
show evidences of cautious realizing
TO some extent this may be due to antic-
1pat1on of the usual April settlements.
put the stock market apparently is not
so sensitive to those transient fiurries in
money as formerly. It is time that
stronger influences asserted their force
We have now had five months of the
most extraordinary boom in the history
Of Wall street almost without reaction
1t Is true that it has benn backed by
very extraordinary conditions not only
enhancing the intrinsic value of railroad
investments but also bringing into the
market unprecedented amounts Of capital,
reinforced by the most potent banking
influences in furtherance of great in
dustrfal and railroad IDEALS" The great
upward pressure OF prices thus induced
has been uncomfortable, and no bear
movements have dared to challenge it.
Such forcible, persistent and one-sid-
ed movement could only run into great
excuses, and has done so to a very inn
rportant, not to say serious, extent; and,
as spectators sometimes know how to
be prudent as well as sanguine, the
more Initiated Of them are beginning to
aSk-f reactionary movement is not
now nearly due. The sustaining strength
now in the market is mainly contributed
by an impression that millionaire opera
tors have not yet completed their deals,
or that other schemes of amalgamation
are waiting to be introduced Much de-
Ponds on these contingencies; but there
is reasonable doubt whether the re-
suits will finally confirm the very san
guihe expectations. AS to the prospect of
further deals, it is to be kept in mind
that they would need the backing of
banking forces; and that kind of sup
port is apt to be regulated by increased
prudence. AS a rule the bankers and the
great banks are becoming cautious 1t is
safe to assume that this important class
are already under commitments as large
as they care to carry.
They do not need to be reminded that
1t is needful to maintain a reserve of
strength against the rebound of the spec
ulative boomerang that may possibly ap-
policy to affect liquidation on their
present advances than encourage new
ones; and, of course, it may be expected
that they will aim to get out while
cl1ques and outsiders are thinking it safe
to hold on. Another important force is
cooperating with the banking contin-
gent. The multi-millionaireS who have
been the chief principals in the great CO.
operative schemes understand that cur
rent prices are likely to be the highest
for a long time to come for the issues
in which they have become so largely in
tereSted; they find the market flooded
with largely overvalued stocks; the time
for them to realize is therefore while the
market is strong and active; and we'll
Informed men do not need to be told that
they are pursuing that policy as fast as
they can do so without breaking down
prices.
If these are the conditions and move
mentS now eXisting-and they are not
only natural to such situation but also
are already in process of eXecutiOn-it
seems prudent for the ordinary specula-
tive holder of stocks to begin to lessen his
obligations and prepare for turn in the
market. The market has Enthusiastically
some strong and sound factors in 1t, and
especially in the railroad list For the
year 1900 the earnings, both gross and
net, are far beyond all precedent. Not a
few roads are beginning to pay dividends
which have never paid them before; the
alliances between groups of competing
reads afford promise of large mitigation
of rate cutting; and 1t is not unlikely
that, after the subsistence of the existing
speculative excitement, there may be a
resumption Of those cooperative alli-
ances. All this warrants higher nor
nal level of stock prices than has here
tofore existed. But these intrinsic i'm
provementS have already been fairly dis
many stocks range above their dividend
paying value, current or prospective, and
readjuStment of their values will sooner
or later be in order.