The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-02-18
REVIEW Of WALL STREET
SITUATION CALCULATED TO EXCITE
THE OPTIMISTIC SPIRIT OF
SPECULATION
TURNING POINT SOME TIME
That Point Has Not Keen Reached
for the 'Bear', to VEN
ture on II Test of
Strength.

NEW YORK. Feb. 17-(special.)-
Henry Clews, in his weekly financial re-
view, says:
The general aspect of the stock mar
ket does not vary materially from the
conditions prevailing for the last three
months. Although prices range from
% to 80 points above the ante-eiection
average level and might, according to
usual experience, be expected to exhibit
now some decided reactionary tendency,
yet holders of large blocks of stocks show
no timidity about prices nor any haste
to realize profits. The market is almost
entirely speculative, and the influences
affecting speculation center almost Who'll
ly around the great industrial and rail-
road deals now in process, or contem-
plated or rumored. The deals" barom-
eter is the chief indicator of the market;
and when it falls there is enough reaIiZ-
ing to show how largely confidence is
dependent on these special conditions
Still, there are always plenty of san
guine buyers ready to take the securit es
thus parted with and each slump is fol-
lowed by a\recoVery.
1t is not to be denied that q situation
so calculated to excite the optimistic
spirit of speculation has never before
existed in Wall street; indeed, we may
not alone say Wall street. for a like flu
rOre has dominated London, in spite of
the many beariSh factors that are now
straiaing that center From the wholly
extraordinary state of affairs presented
by the new conditions in politics, trade,
industry and finance, we could expect
from speculation no other result than
that which now appears in a rise of one
third in the market value of nearly all
corporate investments. Nor can we be
sure that this great enhancement of
prices has yet reached it's elimination
Certain it is however, that the point has
not yet been reached at which the
bear" has even ventured on a tentative
test of the inherent' strength of the mar
ket. The pessimists are lying low until
a higher. state of tension in prices has
been reached, or are even lending their
help as buyers to precipitate the break
ing point; for it is against their interest
that the public should become educated
into familiarity with this new scale o.
values.
OF course, a turning point must sooner
or later arrive; when the structure of
speculative values must be subjected to
normal tests To an important extent,
this boom has taken for granted the opti-
mistic claims of the friends and promo
tiers of the great consolidation move
ment. However much NAV be fairly
conceded to the various forms of indus
trial or other combinations can it be
considered likely that oWan street will
give its final Endorsement to a scale of
values one-third above the former nor
NAL level? Is there any solid probability
that this class of securities will retain
a very much advanced range of prices in
the face of a duplication of the volume
of their paper issues without any in
crease in their true capital? 1t cannot
be denied that, for the most part, the
pending boom is a speculation based
upon an eXperiment-an experiment
which, among other dubious things. aims
to accomplish through water what hith-
erto has been procurable only through
gold
The money market is a point that will
bear watching. Financing the new
deals will require funds in considerable
quantities, and these are likely to be
Withdrawn from the markets at any time
Should such Withdrawals come at an in
convenient period, they might readily
form the basis of sharp bear attacks
There is little prospect, however, of any
put spasmodic stripgency until the April
settlements approach, when a firmer
money market may be expected. On all
sharp reactions the best class of railroad
shares will probably be a purchase for
quick turns The railroads are not only
doing an enormous traffic, but are obtain
Ing better rates and the community of
interest plan is sure to prevent cut-throat
competition for long rIme to come AS
a result, roads which under former condi-
items had no prospect of a, dividend are
now on the verge, if not already within
the ranks, Of dividendrpayers, and are
likely to permanently remain there. The
simple stoppage of rebates alone means
a respectable dividend on some railroads.
to say nothing of Increased traffic and
better rates. Values seem high for many
of our best stocks, but it should be re-
membered conditions have greatly chang
ed, and within a few years many of the
speculative favorites of the past decade
will have disappeared into strong boxes.