The Saint Paul globe., 1903-05-04
WALL STREET is AT
UPWARD TURNING
POINT
Nothing But Easy Money Is
Required to Swing the
Pendulum" Says Henry
CleWs = Stocks Are in
Strong Hands and Pros
poets Favor Activity.
Special 10 The Globe.

Special 10 The Globe.
NEW YORK, May 3.-Wau street is
in a restfuI and generally hopeful
mood. 1t is not making any superfu1
Gus display Of energy just now, many
of its leading spirits being absent or
inactive at the moment, but it is calm
ly putting its furniture in order, cheer
fully accepting the inevitable and maxi
ing ready to adjust itself beforehand
TO the known favorable and unfavOr-
able situations which may have TO be
faced between now and the close Of the
year.
Chief Of all influences is the under
standing that next fall an active money
market may be encountered. With such
a contingency prudent men are careful
about entering into distant financial
engagements; bankers are unwilling to
unduly lock up their resources, and all
through financial circles a spirit of
moderation prevails that promises. well
for the future and is the surest safe
guard against subsequent difficulties.
Behind this disposition to caution there
is a feeling of reasonable confidence,
inspired, Of course, by the numerous
tests values have successfully endured,
and by the probability Of another good
business season should the harvest
turn out satisfactory.
Reserves Are Rising.
Bank reserves are rising as usual at
this season, so that if speculative ex-
cesSes are prevented easy conditions
seem likely to prevail until crop de-
mands begin. The construction of trust
company reserves will necessarily
make some demands upon the money
market, but these have been so care
fully anticipated that no arrangement
should follow. Some slight uneasiness
has been exhibited over gold exports.
though these need occasion no alarm.
Gold usually goes abroad at this sea-
son; but, If the precious metal is re-
quired here, it will probably stay; for
our credit abroad is improving and we
can undoubtedly borrow in Paris or
elsewhere, if needed, without difficulty.
fortunately our exports continue
heavy, and the crop failures in Europe
coming when our own wheat crop
promises to be unusually large make
1t almost certain that We will enjoy an
other season Of large exports. There
IS, therefore, nothing adverse in our
international trade or financial rela-
tons to cause anxiety, and moderate
gold shipments would do no harm so
long as bank reserves continue to rise.
Stocks in Strong Hands.
The franchise tax decision of the
court Of appeals had little injurious
had been partly anticipated. while
other financial conditions Were gen
orally sound Following so close upon
the decision against the Northern Sc
curItIes company, this was emphatic
testimony Of the strength Of the GEN
erat market. That values have lately
met a whole series Of adverse events
without HInching can only be explained
by the facts that stocks are in strong
hands, that all bad conditions have
been amply discounted by the fall last
summer, and by the continued large
volume Of general business Nothing
but easy money is now required to al
low the pendulum to swing in the on
pos1te direction. Railroad earnings
snow gratifying increases, indicating
the growth and activity Of trade: la
Dor agitation, though still prevalent,
Is less rampant than formerly; the
masses are well employed at good
wages; immigration is surprising all
records; there is plenty Of work in
slght for all, and, should the harvest
prove satisfactory, one more season of
large business is almost certain. An
other good feature is the subsistence
OF the consolidation craze in the in
dustr1als- Schemes of this class now
ma no encouragement in Wall street.
unless financed on the soundest and
most conservative lines, and even then
bankers are more anxious to close out
existing deals than to enter upon fresh
ones. 1t IS quite likely that the wind
ing up OF some Of the older svndicates
will afford more relief to the money
market than any other source.
Prospects for Activity.
All things considered, the market Of
Iers safer and better trading oppor-
tunities than usual. For some weeks
TO come good stocks are likely to he a
purchase upon all sharp declines. or
equally good sales upon pronounced
advances. 1t is evidently the policy
or the big leaders to allow the mar
ket to harden itself by natural proc
esses and thus establish new basis
Of confidence. There are no indfca-
tions Of an extreme bull market in
sight, but good support is noticeable
against all bear attacks. The pros
poets, however. favor increased activ-
Ity and higher range of prices A
few individual stocks show exceptional
strength, the indications pointing III a
speciality market for the present at
IeaSt as the most feasible under pres
ent conditions.
The building and completion of the
new Stock Exchange has been coinci-
dent with the advance of New York
city to the foremost rank as a financial
center Of world wide influence and
power. The building itself, in beauty
and completeness Of construction. ia
further evidence Of the great strides
Of our whole country toward pros
perlty never before equaled in the
worlds history. American energy and
enterprise are large factors in this
great result, and the members Of the
New York Stock Exchange may claim
no small share of praise for their part
in the progress The spaciousness and
NJ 81
the trade Of the world to a market that
seems destined soon to be the leader
Of the worlds finance.
Henry CIews