The Saint Paul globe., 1902-02-17
SITUATION IS SOUND
FINANCES OF THE COUNTRY ARE
In AN EXCELLENT con-
DITION
DISASTERS ARE SAFELY PASSED
In His weekly wall street Review,
Henry CIews Leaves Little
Reason for Pessi-
mfsm.

In his weekly review of me situation
in Wall street. Henry Clews says:
There is every evidence of strong in
side support being given the market and
prices have shown greater strength in
consequence. For weeks past it has been
an open secret that the big leaders were
committed to the bull side of the mar
ket, and were simply awaiting favorable
conditions for assuming the initiative.
Unquestionably the situation is more ia
vorable to their operations lnan at any
time since last summers advance Since
then the market has withstood all sorts
of hard knocks. The Northern Pacific
crisis, the failure of the corn crop, the
death of President Mckinley, ano other
untoward events have all had their ef-
feet in checking speculation on the stock
exchange. Such series of heavy diSas-
ters in ordinary times would have precip
itated panic of the sharpest character;
that they did not do so is emphatic proof
of the general soundness of the financial
situation. These difficulties have imposed
a test to the market that leaves it in a
much stronger position than would have
been the case had the rise gone on with
out interruption. was among those who
would have liked to have seen prices
touch a lower level in order to broaden
the market and invite fresh buying.
This, however, it persistently refused to
0O Il SOOU dCd1 OL QdlOI Has
taken place since last July, which has
been very painful to over enthusiastic
operators for the rise, but leaves the sit
uatien under stronger and better control.
Weak holders have been pretty thor
oughly eliminated and the stubborn re-
sistance to bear attacks has completely
suppressed all aggressiveness from that
quarter. The technical situation there
fore lends itself readily to upward ma
nipulation Let US see what the conditions
are outside of the stock exchange
A potent factor in the general busi-
ness and financial situation and one
which must enter into calculations for
the future, is the gradual recovery of
the European markets from prolonged
depression. Slight recessions from high
water mark are, as [ have before noted,
to be seen here and there, but the re-
covery of Europe means increased de-
mands for products, of which our mer-
chants will not be slow to take full ad-
vaF&Gge. Slackening of demand at home
promises to be we'll offset by increasing
orders from abroad. The figures promul-
gated by the bureau of statistics at
Washington placing the wealth Of the
country at over $50, 900 900, 900, with reIa-
tive public debt of only one and four
tenths per cent. are such as to well nigh
forbid pessimism. The United Kingdom
our nearest follower, appears with an ap-
proximate wealth of $50, 900 000, ,0C0 and a
relative public debt of per cent. Such
comparison is not one to discourage
the American people, and in our purview
OF the general situation we must not all
low the little clouds or miSts-often tenn
pCrary setbacks-to dim our vision of
such powerful and fundamental forces
Another element of encoura cement in
the general situation lies in the very ap-
preciable increases during the past few
months of gold production in South Af-
rlca. The return to anything near the
normal supply would strengthen the mar
kets of the world and even the present
| ratio Of Increase ought TO ease the de-
| mands for gold upon this country, espe-
cially as recent events strongly indi-
cate the likelihood of a final termination
of the Boer war within reasonable
| time.
Some attention has been given to the
remarkable expansion O. loans during the
| past few weeks AS these are out of all
proportion to ordinary mercantile de-
mandS the only conclusion is that these
| loans mean preparations for important
| financial operations of some kind. Just
| what these are it is impossible to say
| There are abundant rumors of important
| deals in contemplation, but nothing def
| mite has yet been made public No doubt
| much of the confidence with which stocks
| knowledge of what is going n. The out
| look, however, is for easy money until
| preparations are in order for the April
| settlements. Those who are financing
| these deals are not likely to permit any
serious disturbance in the none. mar
| ket which might interfere. The railroad
| situation remains satisfactory earnings
| continuing to exceed last years large
| figures in spite of corn crop damage and
| interruption to traffic from bad weather
/ The mercantile outlook is also satisfac-
| tory, the West still being exceptionally
| prosperous and the farming classes en-
| joying good credit From all accounts
| the prospects are for a good spring trade
| in due season. Improvement in the for
| eign situation is also likely to stimulate
| our export trade in manufactures At
| the moment therefore, there is little rea-
son for taking a pessirhistic view of the
situation. The market has had period
| for rest and recuperation; and those in
control may consider the period oppor-
| tune for completing some of the vast
| plans which have beeni under considera-
| ton. If they succeed in their endeavors
| and nothing interferes we shall probably
see a more active market during the next
| few weeks, and judieious operations to
| catch the fluctuations cannot fail to