The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-10-27

it is difficult to determine. The materials
for an activei bull market are still want
ing Considerable Improvement has
taken place in the monetary situation,
and apprehensions of disastrous strin-s
gency have been removed by liquidation
in stocks, by contraction in loans and by
Secretary Shaw's energetic efforts to
funds. The stoppage of the coal strike
was also favorable feature, inaSmuch
as it paved the way for removal OF
very serious public irritant, which, had
it continued, would eventually have Gre
ated a more serious disturbance in Wall
street. Unauestionably. the coal stocks
have been supported with great skill ana
power, it being certain that five months
loss of product would have created a Sc
riousl shrinkage, in the value of these
securities had not some powerful sup
port been accorded. If that power. had
been crippled by untoward events it is not
easy to Imagine the consequences to the
coal stocks, which throughout the ordeal
displayed remarkable staying. powers.
Declining Profits a. Feature.
With anxiety concerning the strike and
of stimulating features ends. 1t is true.
that general business continues active
and large in volume. with no prospect of
immediate diminution. But a striking
lines is declining profits. AS already
shown in these advices, net profits for
both industrials and railroads are begin
ming to shrink owing to increased cost OF
raw materials and labor. The same is
true in many other lines of business whose
securities are not dealt in on the stock
exchange. Should this tendency continue
it means curtailnent lin the purchasing
powers of the wealthy classes, which in
turn will reduce the consumption of many
commodities, especially luxuries.
rary, and such it is hoped will be the case,
but there are only too many suggestions
strengthening the impression that a par
tial reaction from the high tide of pros
perity is now upon US. Not the least In
dication has been the unfavorable turn in
our foreign trade during the past year.
High prices here have greatly stimulated
imports and checked exports; the result
being to greatly diminish the favorable
balance of trade which existed two years
ago, and render possible the talk of gold
exports, which now tends to make Wall
street hesitate, not so much from the
actual as from the moral effect of our be-
ing compelled to ship gold when the banks
are endeavoring sto strengthen their re-
sources.
Prices Too High.
all impeded at present by the. fact that
American holders demand prices that Eu-
ropean buyers will not pay, and even ex-
traordinarys low outward freights are not
sufficient to move these products from
our Seaboard with desired freedom. Other
evidences of a reactionary tendency could
be cited, but enough have been presented
to warrant conservative attitude to-
wards the future'suntil some sort of re-
adjustment has taken place which will
encourage fresh forward movement.
Such a change is hardly likely to APP
pear for some weeks perhaps not until
the new year is close at hand or fairly
begun. Two months ago gold imports
were anticipated; now gold exports seem
equally probable The explanation of this
change IS of course partly due to the less
favorable balance of trade. but chiefly to
ers. AT both Paris and Berlin there has
been an unexpected financial strain; and
added to this there has also unqueStfon-
ably been a growing distrust of American
sooner become more marked except for
the confidence induced by our continued
material prosperity. Home necessities,
therefore, might easily force foreign
bankers to close some of their American
accounts; the effects of which would be
reflected in the foreign exchange market
and in an increased facility for shipping
gold. Eventually that metal will go
where it is most wanted where it will
command the. best rates, and any eff1ux
would soon be impeded by higher interest
here.
Nearer Gold Shipments.
The large amounts of money set free
through Secretary Shaw's efforts, amount
ing probably to nearly O0000,0 600, have
inevitably brought us nearer to gold ship
ments, through temporarily relieving the
| monetary pressure at this point 1t is
about time that these disbursements
made their appearance in more favor
able bank statement; though 1t. is to be
Remembered that a large portion of these
funds were released at interior points,
thus affording indirect relief here by an
| ticipating future demands. While the
grip of New York bankers upon the sit
uation has been somewhat weakened by
the sudden relief to the money market, 1T
is to be hoped they will steadfastly pre-
serve their present conservative attitude
towards undesirable speculative move
ments. In any event firm money is like
ly to last into the new year; political
campaign is on which. may easily develop
some unpleasant, surprises considering
the present state of. public unrest; and,
until the financial, political and business
prospects become more settled and more
| favorable, we cannot confidently look for
| a buoyant market. These conditions
may have. been very largely. discounted;
| still there is no discernibIe change in the
| conservative spirit of the big leaders who
| really dominate the situation.
Henry ClewS.