The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-28
MARKET is ERRATIC.
FLICT WITH NATURAL
CONDITIONS
gITUATIoN AN UNUSUAL ONE
leading Industries Continue to Be
Active, and establishments
Are Running to Full
Capacity.

In his weekly review of the conditions
On Wall street, Henry Clews says:
The stock market just now presents
the interesting though not unusual spec
tacle of moving in conflict with natural
conditions and being entirely under the
5 control of powerful and able manipulation.
The investor of ordinary prudence thinks
that prices are still at 4 high level; ana
that the slight reaction from the boom
of last spring, while it may not justify
Sny bear movement, is certainly not
5ull argument. 1t should be borne in
mind, however, that the present situa-
ton IS very unusual che and cannot
be measured by usual standards. There
has been reaction in certain sections and
in certain industries from causes too IA
miliar to cal for repetition; on the other
hand, there are sections of the country
and particular industries which are just
feeling the full effect Of the wave of
prosperity; so that while it may be re-
ceding at some points it is still progress
ing at others, causing confusion of re-
suits out. of which 1t is not easy to form
confident opinions.
The chief indications of recession have
been in the smaller profits of, the indus
trials the losses here and there in our
expert trade, and the damage to crops
from drouth. On the other hand, the
leading industries continue exceedingly
active and old and new establishments
are running to their full capacity. The
enormous consumptive demand for prod
ucts Of all kinds surpasses the expecta-
tiens of the most experienced merchants
and nanufacturers, and affords the most
striking testimony of~the soundnesS and
substantial character of the cOuntrys
growth. This is especially true of iron
and coal, the use of which is dependent
upon the activity of other lines of in
duStry. There are no signs of reaction
in these markets; and it is evident that
slight concessions in values would bring
out new lot of orders that are being
held back for just such contingency.
The agricultural situation is undoubtedly
the most unfavorable factor observable,
but the harm there is confined to spots,
anC has many offsets, so that the in
jury will be much less than anticipated
in July last. Farmers are generally
prosperous and out of debt and well able
TO meet their losses. Briefly stated then
the agricultural, industrial and CONNER
ciaI situation, while not so brilliant as a
year ago is sound and satisfactory; and
in these directions no very strong bear
arguments can be found.
There being nothing outside of the mar
ket to influence speculation, prices must
naturally be controlled by movements
more closely connected with Wall street.
market at present. Outside affairs have
been about discounted and railroad stocks
are still chiefly dominated by the prog
ress or delay in the community of in
terest plans The hitch which develop1d
out of the rivalry of two big interests
to secure Burlington & Quincy was chiefly
responsible for the abrupt termination of
the bull market last spring. 1t is quite
apparent now that the speculation DEM
onstrations in Northern Pacific last sum-
mer had probably more to do with re-
cent declines than the corn crop failure
President McKinley's DEATH or fears of
stringent money 1t follows then that
the market is still largely influenced by
this transaction, and that any solution
of the present tangle will afford very
decided relief and stimulate renewed
manipulation for higher prices. The in
dicatiOns are that as soon as this ques-
ton is settled the movement towards CEN
tralization of railroad management will
receive a fresh impetus, and the effect of
this upon it is too early to determine.
There is no gainsaying the advantages
of this movement so far; not merely to
the owners of securities but to shippers
and passengers alike who receive the
benefits of uniform rates and better and
quicker service So long as rates are
not pushed too high it seems likely that
the railroads will not meet with any Sc
solidation forces another, and the move
ment is not likely to cease until all the
large systems have control of the terri
tory they are best fitted to serve. While
negotiations of such vastness and intri-
cacy are under way we may expect all
sorts of rumors, favorable and unfavora-
BILE, and when completed these plans will
undoubtedly add to the stability and
value of good railroad properties; but in
the interim We may experience wide f1uc-
tuations and more or less friction as rival
interests play for position. This may
tend to increased activity in the mar
ket and renewed speculation. 1t is well
known that big men are carrying large
amounts of stocks which they are I'M
willing to part with at present prices and
their interests lie in the direction of high
er prices. The money market is almost
past the danger line, as in a few weeks
funds withdrawn for crop purposes will
begin to return. The situation abroad is
unfavorable and the prospect of gold i'm
ports is somewhat remote; but the United
States is in such a strong position finan-
cially and commercially as to be only
slightly influenced by foreign affairs at
the moment. While the present strong
undertone continues we expect to see a
good trading markt, but prudence sug-
gests the taking of profits on all good raj