The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-02-16
MONEY EASY AND
FREIGHT TRAFFIC
HEAVY
Causing an Undercurrent of
improvement in the New
York Stock Market
Boerses in London and
Berlin Without Notable
Incident During the Week.
Special to The Globe.


NEW YORK, Feb. 14.-The stock
market showed during the week an un-
dercurrent of improvement, excepting
just at the end of it; the favorable fac
tors being easier monetary conditions
and the tremendous pressure of traffic
upon the railroads, demonstrating con-
tinued business activity. There were
also signs of powerful inside support
on the part of those who have impor-
tant deals awaiting contamination.
The setback which came on Friday
was due to the fear of gold exports and
unfavorable criticism of the Erie bond
scheme. Just now there is very sat
isfactory state of inertia among the
more reckless speculative cliques who
endeavored to push operations to dan
gerous limits last summer. Whether
this is due on their part to a less con-
fident spirit or vivid recollection of
the disasters of last fall is not yet
made known, but it is very evident
that the market is under powerful
control and that those at the helm be-
lieve in a conservative policy. The
market big leaders are evidently in
terested in the direction of better
prices, so that it seems likely that
values will be made to have an ad-
Vancing tendency in order to inspire
public confidence and thereby admit of
widening the distribution of securi-
ties. The prospects, therefore, for a
spring rise seem to be fair; in any
event. the market should grow more
active, and favorable developments
would undoubtedly stimulate buying.
1t must not be overlooked that a num-
Der of important deals are in progress
whose elimination is simply awaiting
favorable opportunity. Such oppor-
tuntty generally offers when money is
easy and in ample supply at this CEN
ter. These events will probably be i'm
portant If not dominant factors in the
situation; unless, of course, unfore-
seen events of an unfavorabIe nature
occur.
Some Uncertainties.
The outlook, however, is not with
out its uncertainties and drawbacks.
Money market conditions are better,
but not entirely satisfactory. Bank
reserves are about at the same level as
last year, but April settlements will
soon have to be anticipated, and after
that the new plan of creating 10 per
cent trust company reserves must be
cash out of the market, diminishing
credit, of course, several times that
amount, and while it is to be done
gradually-5 per cent by June and
another per cent a year later-wit4
the least possible effect upon the mon
ey market, still it will inevitably tend
TO restrain very easy rates if it does
not distinctly harden them. Obliging
the trust companies, particularly the
new ones, to carry a moderate reserve
themselves is a wise policy and in the
interest of the whole community. The
strongest concerns already conform to
the recognized uSages of prudent bank
ing IN this respect, and if it's enforce
ment causes any temporary inconyen-
1ence, which is not at all certain, it
should be accepted as a guarantee of
increased safety. There is no other
disturbing element in the monetary
outlook until next fall, except gold ex-
ports or an undue locking up of funds
IN the treasury. AS to gold shipments.
there Is no reason for any uneasiness
IN this respect while exports of mer-
chandise continue so heavy and in
view of our diminishing obligations in
Europe, where conditions of ease now
prevail. Still, our merchandise i'm
portations continue exceedingly heavy.
ana the consequent increase of Gus
toms threatens to renew the accumu-
Iatlon of funds in the treasury.
Unfortunately, there is no prospect
or scientific or thorough legislation on
the currency bill this session of con-
gress. The Aldrich bill, which NAV
pass, is purely temporary measure
Tor an emergency, offering some relief
IN case of repetition next fall of last
seasons stringency but in no sense
providing a permanent, sound or elias
TIC currency system. Instead of talk
ing the treasury out of the banking
business 1t leaves the market again
under the uncertain control Of a single
government official at a critical period
instead of regulation by natural in
Huences which all can measure
Spring Promises Fair.
Spring trade promises to open I'M
der favorable auspices. CONSUMPTION
continues on an unprecedented scale.
factories have an abundance of orders,
and the railroad system is almost
broken down under the pressure of
traffic. Labor is actively EMPLOYED at
the highest wages on record, and the
only element of warning in the indus
trial world is the large increase in
costs of production. This is a, factor
that sooner or later must arrest de-
Velopment and bring us into closer
competition with foreign producers
where cost of labor and materials is
much cheaper. Such a reaction is NOT
yet In sight, but it is not far distant,
ana may come sooner than expected if