The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-18
PACE is TOO FAST
HENRY CLEws SAYS IT CANNOT
LAST INDEFINITELY AND AD-
VISES CAUTION
LAST WEEKS DEVELOPMENTS
Adjustment OF the Rig Railroad Deal
Hailed With Satisfaction by
Wall Street In
terests.
In his weekly review of financial. condi-

In his weekly review of financial, condi-
tons, Henry Clews says:
Interesting developments occurred dur
ing the past week, some of which had
been long expected and did not exert the
effect anticipated. Chief of these in i'm
portance, of course, was the final an
nouncement of the settlement of the Nor
gan-H ill-Harriman controversy The
main points of that agreement We're
probably adjusted shortly after Mr.. Nor
CAMS return from the Pacific coast, and
as usual the market discounted it's effect
while the final details were in process of
settlement. Not a little disappointment
was displayed at the break in the market
when the plan was finally made public,
the impression having got abroad that
the clearing up of this dispute would be
the signal for fresh bull market AS
previously intinated in these advices,
however, the immediate effect of adjust
ment was discounted in advance, and
Thursday saw heavy realizations in
stocks bought for the advance. Other
circumstances contributed to the reac-
tion but this was the real factor. While
there are points of weakness in the new
plan and the railroads interested can
only earn the dividends expected by
narrow margin for some time to come,
yet the arrangement is a practical sou-
ton of a very difficult problem, and one
that affords the largest possible share of
justice and satisfaction to all concerned.
The Union Pacific interests secure pro-
lection from invasion of their territory.
while the Hill and Morgan party main
tain control of the properties in which
they are primarily interested. Thus ends
struggle between rival interests in
volving larger issues and vaster amounts
of capital than Wall street has ever be-
fore seen. An open rupture would have
been disastrous, not alone to the parties
most concerned, but to the whole mar
ket and might easily nave involved us
in serious panic. The removal of such a
threatening contingency is not only a re-
lief; it is positively reassuring; it marks
q great step forward in the community
of interest idea, which now that this diff
ficulty is out of the way will very proba-
bly, be pushed on in other quarters Wnen
conditions favor, until the whole country
is divided into territorial groups The
attitude of the public towards these gil
gantic combinations is problem Of the
future. Troublesome state legislation
seems very probable So long as rates
remain reasonable, steady and free from
discrimination and so long as service is
efficient, there is likely to be little serious
opposition; and railroad managers will be
wise if they do not oppose reasonable
regulation of their affairs by the govern
ment if the people demand it. There is
no safety in definance of sound public
opinion. Apart from the railroad deal,
the market seems to be under the influ-
ence of conflicting conditions. Though
there is a general feeling that we are on
the top wave of prosperity and that a re-
ceding movement must soon set ill., yet
on all sides we are confronted by evil
Of ,7ODraandaDfaH industrial f9atiV-
ity. Some branches Of the iron traue are
still 'tbooming' at an astonishing pace,
with no prospect of early cessation, and
railroad earnings. continue to show the
most fiattering increases over last years
record breaking returns.
Agricultural interests are also sharing
general prosperity, and there is little
complaint even from the districts where
cCrn and cotton Were most injured. The
truth is the United States, with its mag
nif;cert resources has burst into ire of
those periods of rand new DEVELOPMENT
such as have more than once astOnished
the world and no one can tell when the
climax has been reached. Certainly the
reaction in Germany, while it should be
taken as a warning, cannot be accepted
as parallel; for Germany is a fully de-
veloped country, and must react quickly
from excess, while the United States
through sheer strength, can continue
longer on the path of development I'M
hurt. The feeling of apprehension, or
more properly speaking, conservatism
which row exists is, however, one OF the
best safeguards against excess. 1t is
quite certain the present pace cannot last
Indefinitely, and the cautious spirit is to
be welcomed and encouraged General
business and credit are still sound. and
there Will have to be a very considera-
HE overstTaining of both before any
widespread reaction can take place in
Wall street. In the case of speculation
there is, however, particular reason for