The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-08
CONDITIONS SEEM TO
BE ADVERSE IN
WALL STREET
Factors for the Week Which
Influenced Trade We're
Labor Troubles, Large
Shipments of Gold, Big
Rains and Fires-MOnetary
Situation Need Cause No
Alarm, Says Henry CleWs.
Special to The Globe. :

Special to The Globe.
NEW YORK, June Last week
seems TO have witnessed a perfect out
break of adverse factors against Wall
street Extensive labor troubles, a
big failure in Canada, Unexpectedly
large gold shipments and extraordinary
meteorological conditions all combined
TO exert a depressing influence upon
security values. The climax seems to
have been capped not alone by too
much rain in the West and too little
in the East, for the country seems to be
under the scourge of both fire and
water to an unusual degree, and heavy
losses have undoubtedly fallen upon
property and crops in various impOr-
tant sections.
As for the labor situation, that is no
worse, and in some respects it is better;
for strikes are fewer in number and
economic conditions are such that con-
cesSiOns are obtained with increasing
difficulty, and the inducements for ag-
gressiYe action by labor leaders thus
cOrrespondingIy diminished. Labor is
well employed throughout the coun-
try, except where voluntarily out, and
as yet there is no Industrial reaction
in sight. Many industrial establish
ments are running on smaller margins
of profit than year ago; but there is
no dearth of orders, and the laboring
classes as a rule are certainly enjoy
ing a higher degree of prosperity than
ever before.
The Canadian failure was not a COM
plete surprise. Canada has been en-
jOying for some time a most phenome-
nal boom, which was materially Stirnu-
lated by an influx Of American capital
and American emigration. AS a result
a good many questionable ventures
were recently started, some of which
L,
sequences to their supporters. Such
catastrophes are to be regretted, but
they clear the financial atmosphere
and create a feeling of prudence that
was conspicuOuSly wanting and is to be
warmly welcomed. Quite a number Of
the weak spots have been weeded out
in the United States during the last
twelve months, producing a liquida-
ton remarkable for its prOtraction and
severity, as we'll as freedom from
panic. Nobody would have believed it
possible during the bull fever which
prevailed about a year ago for prices
TO fall 80 per cent without a panic or
without a single failure Of conse-
Quence. If such a contingency had
then been predicted there would have
been no believers; yet the unexpected
in this particular has happened, and
the record is altogether remarkable
and unprecedented as a demOnStra ton
of financial strength. Unquestionably
our resources were greatly strained by
excessive promotions and the creation
of mass of unmarketable securities;
but the burden fell upon those best
able to bear it; hence our immunity
from serious difficulties. Today the
financial situation is vastly better than
in 1902, Notwithstanding the perpIexi-
ties still to be faced.
Crops Injured.
OF the crop situation it is much too
early for anything like final or reliable
conclusions The condition of wheat
has undoubtedly been injured by I'M
favorable weather; yet the outlook re-
mains for big crop. For corn the
prospect is less promising. This crop
is exceedingly late, increasing the
chance Of injury by frost, and foods
have done considerable damage. Cot
ton is also very late and exposed to
danger by frost, while condition is ex-
cepuonally low and acreage but slight
ly larger than last year in spite of high
prices. Nevertheless it is much too
early to form any reliable estimates
about the harvests, because reason
ably fair weather for the next three
months would give ample time for re-
coVery. The South seems assured Of
good prices for it's next crop of cotton,
and this viii add materially to the
pros perity of that section. Wheat and
corn are also likely to bring good prices
this year. Hay and fodder seem likely
to be scarce; so high prices for meats
and provisions are probable; so the
agricultural classes, like the Iaboring
classes, have a promising season be-
fore them. 1t is in financial quarters
where the greatest drawbacks exist.
and these have been largely if not am
ply discounted by the late declines.
Monetary Situation.
The monetary situation calls for some
attention. Since the beginning of May
we have exported over SIG, 000,0 gold
the bulk going to Paris and considera-
BILE to Argentina, the latter also for set
Element Of our European Indebtedness.
This movement, however, need cause
no alarm. We usually ship gold at this
season; besides we are large producers
of the precious metal, and the KIondike
is said to have accumulated $4,000. 900
of gold this winter, which will come
forward with the early removal of the
ice blockade. AS bearing upon money
supplies it should be borne in mind
that Secretary Shaw's refunding
scheme has been a brilliant success,
the evidence of which is that $1,000
600 old bonds have been converted into
per cents, which will admit of a cor
responding amount of bank bills being
issued by the banks. According to Of
fetal statements the banks have in
creased their circulation nearly $4,000
600 since June 1, 1902, which makes the
national bank issue now about S40O.
100000, the largest on record. The to-
tai supply of currency in the United
States on June 1, was $2,382, 0OO. 900
against 50, 254, 100000 the same date
last year, an increase of SIPS, 0OO, 900 in
twelve months. This should do much