The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-11-12
Special to The Journal.

Special to The Journal. .-- .a!
New York, Nov. 1.-THE sweeping republican
triumph at the polls on Tuesday had the power
full effect on speculative sentiment which nearly
everybody would have been willing to predict
who read the returns. Over the election holiday
there had been a sharp advance Ill the Amerl.
can department in London and under this lead
the market opened with rush on wednesday.
| Heavy profit taking checked the rise In numer-
GUS quarters but in the majority of the active
issues the eager rush of buying orders swept
everything before it. Trading continued on a
tremendous scale, and the characteristics of the
wild speculation which temporarily inter
rupted in the ten days before election were
reproduced with even more thrills
Several important events are pending IN the
stock market. That more gold will go out to
Cuba is conceded; whether shipments to Europe
will or will not be continued Is still an open
| question. 1t is yet be seen whether the
| treasurys coming call on the market for
$50, 900, 900 cash, to restore the government
working balance, will be offset by rapid re-
| turn of currency from the west. or whether the
| west will keep most of what 1t has, to provide
for the expanding autumn trade. The $780,
| OOO, 900 asked from this market for the Japan
| csc loan Is fact to be considered in the same
connection. Last spring, the demand for capital
| by Japan, Cuba, and New York city, had very
tangible influence on the markets available sup
plies The Japanese demand Is no more nkel!
now to stand alone among such inquiries than II
was in May.
Feature Of Stocks.
The action of the stock market showed that
| Wall street thought it. was all over except thu
shouting. There will be the usual activity tina
always follows presidential election. and theI
Wall street will again get down to business
The fact Of prime Importance is that industrial
conditions are improving, and that the outlool
| for the next year is all that could be desired
higher prices for securities. 1t Is impossible
for anyone to be anything but a bull on TIT
country. While railroad and industrial earn
ings will huctuate from year to year. accord
NJ ity tS
as anything be that over a series or year
both railroad and industrial earnings will in
crease. A study Of the stock market over
series of years shows that 1t moves in waves
Sometimes prices advance too rapidly, and the
there comes the inevitable reaction. After eac
reaction. however, a recovery always sets IN
which carries prices to still higher levels tina
had been established before the reaction.
| The question which each person has to de
eide for himself is whether prices have &C
vanced too rapidly during the last few month
and whether not the market has more tina
discounted the improvement which has occurre
in industrial conditions. AS compared with tn
range of prices last spring the market has nd
vanced average of about 20 points, Will
the appreciation in value Of the different secur
, ties traded in has been in excess of $1,00O,O0O
900. At first glance this looks as If the marke
has fully discounted the improvement which ha
: occurred. There is fact, however, whic
should be remembered. Turnout last year tn
stock market was in a most depressed state an
prices forced far below intrinsic value;
| "A COnSlueTHple pFOporliOH VI Tie auNahCe uuil
| the last few months, therefore, has been sinpl
a natural recovery.
The Railroads.
The railroad issues altho generally less activ
than the industrial specialties, reflected tf
strength of the latter. rather widely-circ'
lated point that speculation was likely
drift to the industrial shares seemed to attra'
the professional trading element to that qua
ter of the market The buying of United Stat
Steel stocks was apparently predicated upon tt
more hopeful tenor of trade advces and
financial opinions upon these advices. There
some complaint that specifications on new orde
for steel are not coming ahead fast cou
be desired, but the testimony to a larger buyir
of iron and steel Is general as to leave lit
. doubt that there has been q very material IL
| provement in that industry.