The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-07
VALUES ON DECLINE
SENTIMENT ON STOCK EXCHANGE
HAS LOST IT'S BULLISH
CHARACTER
CONSERVATISM SAFE COURSE
Unexpected Events Have Had De-
pressing Effect on Markets in
Wall Street-MOnetary
Outlook BETTER.

Henry Clews in his weekly letter
writes as follows concerning conditions
in Wall street:
Values on the stock exchange continue
to exhibit a declining tendency Senti-
ment has gradually lost its bullish char
acter, and the eXtraVagant expectations
of three months ago are giving way to
more rational opinions and actions. The
present course of the market is no doubt
very dlstaSteful to those whose over
sangulne dispositions have led them to
unWlSe commitments on the long side A
good many reasons can be presented for
TINS prolonged reaction, such as the con-
oIuoh OF the money market, the injury
TO the corn crop, labor agitations and
the shocks to confidence arising from
the Northern Pacific deal, President Nc
hlnIeys death, as well as other unex-
pected events. All of these have had
their share in checking the boom of 1901.
and everyone knows that the reaction
would have been more rapid and severe
nut Tor the resistance of big interests
which have used their tremendous com
blned powers to check anything APP
preaching panic. Natural forces how
ever, will in the end exert their sWav.
and back of the influences on prices
just referred to, it is plain that public
opinion regarding the market has been
very decidedly moulded by the fact that
prices were unreaSonably high from the
investment standpoint; also by a sus-
plclon that the top wave of prosperity
had been touched and that hereafter
trade and industry must be expected to
settle down to more normal conditions
Conservative men were Justly appra-
hensive that unless the pace was slack
ened, we should run into speculative and
business excuses that would produce
disastrous reactions. Deprived of the
support of the investment and conserva-
tive classes, the market lost its best
foundation and easily succumbed to tenn
porary influences and shocks This
turn in the condition of affairs happened
to come at a time when the large rail-
road interests were carrying on the
process of consolidation, which had been
practically completed in the industrial
world. These plans have, in the Ian
guage of the street, been ''held up
not so much that conditions really pre-
vent their final contamination as that
policy dictates their postponement until
more favorable opportunities are offered
the speculation incidental to sdch move
ments- When the stock market is found
to have touched bottom and the outlook
improves we may look for a resump-
ton Of these negotiations, and not be-
fore.
In many respects it is fortunate that
the market has been in control of strong
hands. Losses have been gradual and
more widely scattered than had the de-
cline been unreStTained and the market
left to the tender mercies of the bears
The extent of the decline is perhaps
greater than realized-from Is to so
points on many of the active stocks.
Compared with the highest prices made
last spring, the declines which have
taken place are as follows:
Atchison ...........15 do 1st pfd 16
Bait. & Ohio......H NJ, K. & T. pfd .16
B. r. 7. ............2S Mo. Pacific .3O
c., NJ. & ST. P....2S Nor. & Western. 4
c. q N.-W.........12 Pennsylvania 49,. II
G., r. I. & .....35 Reading . . 8
D. & II. ............2 30 So. Pacific ........ 7
y. L. & W.........24 Union Pacific -. 81
Erie ................. 81
In the face of such declines, and con-
sldering the concentration of holdings,
bear attacks upon railroad securities are
likely to be made with some caution. 1t
remains to be seen whether the railroad
section of the market has fully discount
ed the injury to corn and any possible
trade reaction or not. 1t is well to re-
member that Wall street is in the habit
of anticipating such movements, SO that
when the results appear the effects are
practically nil
One of the most important considera-
tons just now is the course of the in
dustrials. In August and September we
witnessed series of annual reports of
an unfaVorable nature. Reduced earn
1ngs have followed lower prices for prod
ucts, and it is very evident that the era
Of abnormal industrial profits is on the