The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-06
CLEWS' REVIEW OF FINANCIAL PROSPECT
Public Is Cautious as to Speculation but the
Future Holds Good Promise


NEW YORK, Jan. T. = Following is
Henry CIews' views of the financial mar
ket for the week, including present indi-
cations and future probabilities:
In spite Of holiday Interruptions and
Rpprehensions of tight money we have
had fairly active and advancing stock
market. Strong inside interests have taxi
en- hold of the market and under their
powerful support prices were bound to
advance. There was no unfavorable news
except what had been already discounted.
consequently there was little hindrance to
professional manipulation. The principal
stimulus to a bull movement was Of
course anticipation of the usual January
investment demand and the large dividend
disbursements at this period. While the
latter caused temporary arrangement of
hhe money market, they are generally
regarded as bull argument for the req
son that considerable portion find their
way back TO Wall street for investment
purposes.
This year January dividend payments
are larger than usual in spite of the de-
cline IN industrial dividends. Our rail-
roads are still enjoying a degree of pros
perity far beyond what was ever antici-
pated, and this fact alone is sufficient
70 tfotd values at their present high level
and give the professional trader a chance
Tor an upward turn.
Public Chary of Speculation.
So far however, the outside public
have shown little disposition to enter the
market. such of them as have not been
bitten by the collapse in copper in an
exceedingly cautious mood; thew recog-
nlze that values are already very high
ana that a bun market forced at this
lime would very likely be selling move
ment in disguise. 1t seems very improb-
eble' therefore, that the present attempt
70 interest the public will succeed, and
prudent commission houses are taking a
cauuonafy< attitude The excentiona1
strength of the coal stocks served 70
stimulate speculation, especially az there
was some justification for a rise in tbe
tNeadlng issues. The latter have Iong
been classed among the Iow-grade issues
LOT reasons that are now ancient history.
F. dnsil prices for coal and a large demand
Tor that product have, however, effected
an important change in the prospects of
oa.Sgs sscurltles' to say nothing of the
carry restoration of voting power to the
1Heaolng. Being among tie most back
"dru shafes on the list, the rise in these
ISSUES mas been more legitimate than 9th.
er movements in the market.
Buying Power May BE Checked
As for the outlook in 1902 it is certainly
SATISFACTORY and hopeful, but less so than
d year ago. Prices of both stocks and
commodities are very high; SO high 40
10 Tnater1allyecheck buying power and re-
move all basis for legitimate speculation
OF anticipation of future wants. The
BUSINESS situation is good, yet it is spottv
~ ~ ca with the beginning of 1901
HE iron trade is still ENJOYING a most av
trdofolnarE boom and promises to CON
lihue IN this course for soma +ina 70
come Its chief basis is the demand from
tie ralfoaos, which, as explained in pre-
NIous advices, are not only overtaxed
with the handling of freight, but are
Passing through a process of reconstruct
tlon involving heavy orders for rails,
pIldges, cars and locomotives that vvouId
be likely to continue even should the rush
Oh freight abate somewhat For some
uIne to come, the railroads will be ohio
ca TO spend large part Of their s11rnlua
earnings in this direction, rather than in
increased dividends; and it is rare good
fortune for railroad managers that these
imperative changes can be paid for out of
earnings rather than by isue Of new Sc
curities which would otherwise have
been the case.
Good Business in Sight.
Experts say that the end of the nras-
ent activity In freight traffic is not vet in
sight, that We are in for several months;
addluonaI good business. We trust this
VIII prove true, but we are now at the
time WHEN reduced corn movement will
De telt and the severe winter promises
TO cause more or les Interruption. Out
size Oh the iron trade there it no abnor.
mai activity, and values often show a
saggIng tendency. High prices have
simulated production and checked buv-
ing, so that some sort of natural read
9Ustment seems necessary. In this con-
nection it is important to watch tha
workings of the trust experiment. These
organizations exert a powerful control
over prices, which if used in the same
1ashlon as in copper will produce cor
responding results. Those who control
these trusts and have securities thev
would like to sell may easily be tempted
TO mold prices at artificial levels, to dam
up the natural sources OF supply and de-
mand until such schemes collapse from
inherent unsoundness. The trust svs-
TEN appears to have worked very
smoothly under prosperity, and it will he
interesting to watch its course when the
markets begin to move in a downwar I'd
direction, as they certainly will in due
season. There is a vast mass of these
securities in the market undigested. and
they will be the first to feel the effects
of reaction.
The immediate outlook for the market
- 100 Ao