The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-09-30
LOSSES LIGHT HERE
Squeeze in Money Did Not Catch
Local Followers Of the
Stock Market.
Experience Had Taught Them Les
son-Local Banks Easy-Shaws
Action Approved.

Very little northwestern money has been
lost in the recent heavy decline in Wall
street, although there have been some
tremendous losses elsewhere. The local
crowd which follows stocks has been
afraid of the market for a month, and
those who were not bold enough to take
the bear side have remained out altogeth-
er. Six years ago in October, 1896, when
1t was question of Bryan and free sill
yer or Mckinley and the gold standard,
call money in New York ran up one day
to 127 per cent. The head Of a Mime
apolis brokerage house with New York
stock exchange connections was carrying
a heavy line of stocks for customers on
very moderate margins. 1t is said that
when the day was over his customers had
been wiped out and his personal loss was
$50, OOO This did not break him, but it
tempered him, and in the panic Of the
fourth week of December, 1899, when call
money ranged from 2 0per cent up to
1876 per cent, he was not there, nor were
his clients. This house has been advis-
ing extreme caution for month, as have
other houses here, and the breaks Of to
10 points following the rise Of call money
to IS per cert yesterday, caught only the
more venturesOme traders who DELHI
erately disregarded the conservative ad-
vices
Locally there is nothing but praise for
Secretary Shaw, and his announcement
last night that he would loosen up the
bank reserves. meets with the approval of
many who, while declaring it unsound in
general principle, yet admit the neces-
sity for relief now. 1t is conceded that
conditions are worse this year than last
year, when Secretary Gage was in control.
and the new farmer secretary is admit
ted to have done very we'll so far.
Effect on 500 Stocks.
It is the gossip on change that large
holdings of 500 stock by the so-called
Toronto crowd have gone overheard on
the breaks. Much of the 500 remaining In
local hands is we'll protected and it will
require a heavy general decline to force
1t out
With all the pressure for money in Wall
street. there is much talk of the heavy
interests trying to cripple John w. Gates.
The advent of this western plunger in
Wall street marked the beginning of great
nervousness on the part of the old con-
sentative millionaire banking houses who
found their fields boldly invaded, as in the
case Of the Belmonts, when Gates made
has piratical entry into Louisville &
Nashville, and everything that comes out
Of Wall street analysing the general
situation carries something of reference
to this fight.
In the local banking field the effect of
the squeeze has been felt but little. It is
a typical New York money squeeze with
1t selects confined principally to Wall
street.
Word from the Street.
Whallon. Case & Co. had the following
this morning from New York:
"Secretary Shaw has at least stopped
the panic by his announcement last night
of his intention to release $50, 00O 900 re-
serve which will permit the banks to in
crea Sc the volume Of business enormously.
Money IS not yet 6 per cent and it
will not be for the present. The situation
last night was very acute and many trad
ers went home fearing a worse panic at
the opening this morning than marked the
close last night, but the action of the
secretary helped sentiment materially"
Charles E. Lewis had number of long
dispatches giving the situation at every
slight change. The best informed men in
the street hesitate to commit themselves
as to the immediate future.
Advices to Watson & Co. said the out
look was better and the general tone
frmer, due in great degree to the action
of Secretary Shaw, but that the best in
formed fnanciers are still advising eau
ton while present conditions last, al
though 1T is plain that conditions in the
country at large are splendid and the
effect will be felt ultimately, but not while