The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-06
CLEWS LOOKS FOR
WIDE FLUCTUATIONS
Optimistic Undertone Indicates
elimination of Long
Rise
Sneciai to The Glnha

Special to The Globe
NEW YORK, March 5.-Unless all in
dications fail we are approaching period
when the stock market will show rapid
and wide fluctuations. A very optimistic
undertone prevails because Of generally
satisfactory business conditions and the
abundance OF easy money. This situation
of course stimulates buying for the rise
among the trading classes and the adj
vance would, no doubt, be carried much
higher We're ii not for the fact that prices
are already exceedingly high, and the
large interests in the market having d.
unfinished their holdings are known not
10 be very aggressive bulls. We are now
probably near the elimination of this pro-
higher level under special influences, but
technically the market is growing less and
less strong for stocks are steadily passing
from strong into weaker hands and all
the good conditions now observable have
been pretty thoroughly discounted To-
day there is a wider division of opinion
regarding values than there has been for
many months; the conservatives who are
growing in number standing aloof await
ing lower and safer level before invest
ing, while the optimists, who are also
numerous, point to the many favorable
factors as sufficient to prevent any ma
terial or permanent reaction. Traders
consequently find conditions much TO their
hiking; hence our opinion that wide fiuc-
profit taking are unusual and likely to
lead to sharp and unexpected reactions.
Iron Trade on a Boom
The iron trade is now on a boom" sur
passing all previous records. The pro-
duction of pig iron is running at the rate
OF about 22O00.000 tons year, all OF
which is going into rapid consumption.
Eight months ago production was run
ming at the rate of only l.. 600 900 tons per
annum. Our furnaces and steel mills are
taxed to their fullest capacity, and the
purchases of pig iron for the protection
OF consumers are still going on upon an
nV~rafara
are largely for railroad purposes and pub
Tic works, many of which were suspended
a year or two ago. The certainty that
IRON VIII not go lower. and the abatement
of labor troubles, coupled with the gem
eral business recovery OF course explain
the phenomenal activity in iron A great
oeai OF construction work had been held
BACK In the hope OF reduced costs, the
result being that there is often an insult
hcient supply OF business and dwelling
structures, and rents are high in conse-
quence' All classes of builders should
find plenty TO do this spring. Recent re-
ports OF the big industrial concerns show
t .ilsu tney are having good business year,
in March s0@gaPe PsyoosS O S1vidsn6s
pared with s21, 500 900 last year and 49,
500, 600 the year before. Bank clearings
In the third week of February We're about
% per cent ahead Of last year, and in the
fourth week they were nearly so per cent
larger than in the same week a year ago.
me heaviest gain was. of course In New
YORK: where speculation explains much OF
the increase. but cities like Pittsburg
Boston, Baltimore and Philadelphia also
report big increases. showing that the re-
x y, Is most pronounced in the east
though rapidly spreading throughout the
west. Railroad traffic has suffered some
what from severe weather. but reports Of
earnings are generally satisfactory.
Congress has closed its activities for
the season. and the market will now be
free at least until October from disturb
a az In this quarter. During the interval
~ is probable that public opinion will be
SO enlightened regarding the dangers of a
OIL! liking railroad rates as to effectually
XIII that radical measure and bring I'm its
place legislation that will deal more ef-
1ectively and more justly with railroad
abuses. In the haste resulting from polit-
ical pandering to anti-capital ideas the
interests OF millions of persons who own
these securities either directly or through
their savings banks or life Insurance mol
icies. are too often overlooked Here is
class of people absolutely ignorant OF
me injury threatened TO themselves. and
OFTEN too inert to use their proper infiu-
.ence or too easily led by political bum
combe.
Monetary Outlook Satisfactory
The monetary outlook continues salts
factory. The period IS approachine-April
Il, the money market frequently
SHOWS some stringency and adversely af-
iects stock market operations. Funds.
however. are abundant, and no serious de-
rangement from interior demands is vet
oOiu CApOIlS nave ceased Tor
the present at least and Europe has been
taking considerable amounts of our secu-
Tlles Crop prospects must soon enter
into our calculations. and IL is cheering
TO note the winter wheat crop is in good
condition. the heavy seasons snowfall
having afforded ample protection. Within
a month farming operations will be under
ful swing, and from the south alrea ay
come reports of a considerably reduced
acreage OF cotton and more land devoted
ucts. -
In the foreign situation there Is little
change -Russia's situation at home and
on the field of battle only seems to grow
more desperate. The car. autocrat that
he is supposed to be. is entirely controlled
by bureaucracy, absolutely opposed to
all reforms In the direction Of public free
dom and not likely to be deposed except
by bloodshed and violence. Russia seems
TO be inevitably drifting towards revoIu-
ton, which defeat at the hands of japan
VIII only bring more surely and promptly.
The effect of all these disasters upon Rus
sian credit is still a problem which the
holders of Russian bonds must regard with
uneasiness. Henry C1ews