The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-09-30
ARE MAKING MONEY
PROSPERITY OF THE RAILROADS
SHOWS NO SIGN OF ABATE-
MENT
MONEY MARKET IS BETTER
Secretary Cages Efforts to MateriaI-
ize Treasury ASSUMPTIONS At
fOrds Considerable
Relief.

In his weekly review of the condition in
Wall street, Henry Clews says:
The stock market seems to be under
the influence of variety of conflicting
conditions. The prosperity of the rail-
roads still continues and shows no signs
OF abatement. In ordinary times this
of Itself would have afforded the mar
ket ample support without the assistance
OF the big operators who as matter
OF necessity have been obliged to prevent
any organized bear campaign. But mon
etary and crop conditions have forced
gradual liquidation, which has now
been in progress for several months
wall street generally anticipates con-
sequences, and will soon be occupied dis
counting the probabilities of 1902. Were
Ii not for the industrial division of the
stock market and financial conditions in
Europe, many of the best railroad shares
might be considered good purchases on
further concessions; but recent events
nave drawn attention to developments
In these two quarters, and their outcome
VIII certainly have to be taken into con-
sideration
While the boom was in progress the
industrials were comparatively neglected
and the public fortunately took limited
interest in their gyrations. When pros
perity was at its height their destiny was
left to the future, and the day of reckon
ing which everyone expected ceased to
have any terrors; the penalties of ex-
ceSsive capitalization, the problems of
management and other perils incidental
to an industrial revolution involving bill
lions of capital were almost forgotten.
Familiarity with danger dulled apprehen-
sions and the risks to these unweldy
combinations from new competition were
easily overlooked Yet the very prosper
ity which facilitated their birth also
created set of new, vigorous, well equip
ped, low capitalized rivals, free of heavy
obligations, whose operations were like
ly to be felt with increasing force as
time progressed. 1t was inevitable, there
fore, that the industrials would be the
first to feel the effects of any trade re-
action; particularly in view of the great
1y increased capacity for production.
Within a short period we have had I'M
satisfactory annual reports from several
of the prominent combinations, the re-
suits of which are anything but encour-
aging to stockholders. Rumors affecting
the management of some of these con-
Germs have added to the disturbance Of
confidence and prompted bearish attacks.
The decline in Amalgamated Copper,
which had its foundation in a lessened
demand for the product, was particu-
larly disturbing factor; partly because it
cause it seemed to explain the indif-
ference of the important interests
towards a bull market at this time.
Whether the Standard Oil party are adj
verse to an upward movement or not,
it is evident that the industrials are
weak element in the market just now.
Apart from their inherent defects arising
from bad financing they are more eX-
posed to sharp fluctuations from trade
vicissitudes and speculative management
than was ever possible with the railroads.
The latter are now reasonably capital
lied honestly managed, and the intelli-
gent investor has no difficulty in ascer-
tanning the essential facts as to their
intrinsic value. This much cannot be
said of the industrials. Secrecy is still
one of the Objectionable features in their
management, and public opinion is vast
~ more hostile to them than the rail-
roads in spite of the great powers of the
latter and their tremendous combinations.
What the next congress will do with the
trusts is an important question that will
soon confront us. Some action seems
very likely to be taken, and President
Roosevelt, conservative as he now may
be has never shown any particular
friendliness for these combinations: Pub
licity of some sort will probably be in
sisted upon, and this is Just what is most
needed though least desired by specula-
tive managers.
The money market has undergone some
change for the better. Considerable re-
lief has been afforded by Secretary Cages
efforts to neutralize treasury absorptions;
and this removes the most important
source of apprehension. The crop de-
mands, however are not yet satisfied,
business requirements are large; and, as
bank reserves are likely to experience
further depletion before the return move
ment of currency begins, money will
probably not be easy enough or plentiful
enough for any bull campaign. Relief
from gold imports is still a very un-
certain quantity. If absolutely necessary
we will unquestionably be able to draw
gold from Europe, but it will come reluc-
family AS intimated in our previous adj
vices, Paris, though abundantly able to
spare considerable gold would resist its
movement this way. The financial ten
sion in Germany is considerable because
OF trade reaction; London is cautious
and the probable placing of Russian and
other government loans is not likely to
aid the movement of gold in this direc-
ton, Notwithstanding our continued IA
voTable trade balances. Very soon we
ought to have a better supply of grain
Ind cotton bills, and it remains to be
seen what effect these will have on the
sterling exchange market. In my opinion
gold imports this fall will be strictly
moderate.
The outlook for the market, therefore,
remains unsettled. Railroad shares are
in relatively good condition, recent de-
clines, good earnings and concentration
of ownership placing them in fairly IA
vorable position to resist attacks from
bear raids; but no genuine bun campaign
can be expected until easier money is as
sured. and until the big men cooperate
to that end, which apparently just at
present they are not disposed to do. The
movements of the industrials will also
play an important part in the market
for next several months at least, and 1
fear to the detriment of the general mar
ket. For the present I continue to rec
Ommend buying only on the breaks for
quick returns, which hereafter can be
oft repeated to advantage.