The Saint Paul globe., 1901-02-04
REVIEW OF WALL STREET
ENIGMA, WITH NO REGARD
TO PRECEDENTS
WAVE OF OPTIMISM ROLLS ON
Market Dangerous One Now for
the Average Outsider - De-
pendent Entirely on
Manipulation.

NEW YORK, Feb. 2.-(SpeciaD.-Henr
Clews in his weekly financial review
says:
The stock market continues an enigma
to the average observer and shows an ut
ter disregard of all precedents. Activity
has been greatly diminished, and some
efforts were made to force declines, but
with very limited success At the mo-
ment the public shows no disposition to
enlarge its purchases. The average out
slider has made money during the last
few months, and has either taken his
profits and withdrawn until lower prices
or some other inducements tempt him to
re-enter, or he is so confident of the fu-
ture that he is content to wait and take
the chances of still larger profits. Since
railroad earnings are large and general
business active, and there are fewer
weak accounts open to attack than usual,
there sees to be nothing in sight TO
check the present wave of optimism, un-
til the latter has spent its force and be-
gun to recede. When that point will be
reached is, of course, beyond human Wis
dom to determine. Just now the outlook
for reaction is not very positive. Prices
seem very high and good securities
scarce Solid investments are rapidly set
ting down to a S13@4 per cent basis, and
so long as money continues abundant we
are not likely to see any important re-
cessions in the best securities. 1t IS the
difficulty OF nndlng safe and pronIaDle
employment for money that is really u1-
derneath the present strength OF the
market. ManipulationS and deals of va
riouS sorts are simply the levers by
which prices have been lifted. They could
never nave attained the present high
level but for the prolonged period OF
cheap money, and until this underlying
condition is changed we do not look for
stock
ket
In other respects the market has been
in very peculiar position, activity and
strength being in spots or conI1ned TO
certain securities. This is entirely due
to the various railroad deals in progress.
The consolidation of railroad systems
moves along almost irresistibly, the i'm
proVement of facilities and economies
of operation making such transa ctions i'm
perative. Legislation may prevent the
formal consolidation of many of these
projects, but it cannot prevent closer
working arrangements, nor is 1t desirable
that it should. Passengers or freight
between New York and San Francisco
can certainly be transported more Cheap
ly, more rapidly and more comfortably
through single system of railroad with
one ticket, one berth and one car. than
with a series of changes, detentions, risks
of connections, etc. 1t is quite sa fe To
say that the public, much as it hates
large railroad corporations, would never
go back to the methods of twenty OF
twenty-five years ago, when long jour
heyS meant much discomfort and depri-
Vation
This movement, however, towards con-
sohdatlon has its ups and downs. Actual
comDlnatlon and pooling often being I'M
possible, owing to legal obstructionS the
community of interest idea is being
tried. This involves such a distribution
OF ownership as can exercise control over
the rate-rnaking powers and prevent the
demoraltzing cut-rate struggles which
bankrupted so large a proportion of rail-
roads during the last decade This plan
is to be put into effect in the coaIers and
efforts are being made to carry if OUT
in some form in certain of the Wester
and southwestern lines. The ACCOMPLISH
ment of such plans means the transfer of
large amounts of stocks into Is hands of
those controlling the deals, and it is such
operations as these which have impaired
recent strength into the market. Some
negotiations have not been completed
and no mean are yet offered for judg-
ing their stability; but many of the mar
ket leaders have certainly been discour-
aging u vigorous advance for some little
time past, and this accounts for dimin-
iShed activity.
For the average outsider the market at
present is a somewhat dangerous one;
being particularly dependent upon ma
nlpuiationS of a few opulent men. whose
control of the market is more complete
than usual by reason of the deals they
prompt. The induStrialS are an element
of uncertainty, the speculation in this
quarter being less legitimate; and while
business continues large in volume. prices
are declining and the profits of 1900 are
not likely to be repeated in 1861. New
competition is steadily increasing in the
industrials, and the experiment of put
ting lot of scattered establishments into
huge single concerns has not by any
means proved permanent success
The money market continues easy and
seems likely to remain so, until the April
settlements become factor Funds are
plentiful, and shipments of gold to Eu-
rope have started on a liberal scale
without causing any concern. The situ
ation IN Europe will be strengthened by
this movement, and once more New Yoris
is showing its ability to lend assistance
to foreign money markets. Exports con-
t1nue on large scale, while imports re-
main comparatively stationary. and there
are few signs of Europe lessening her
debt in the United States