The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-04
The Week in Business.

The Week in Business.
This week will long be remembered in
the economic history Of the country. From
it may date the beginning of changes or
importance almost incalculable, for in the
relationship of the federal government to
the world of finance and industry.
1t has witnessed the entry, as med1-
ator, of the President Of the United States
into bitter labor controversy in the hope
that through. the prestige Of his great
office he might be able to bring the war
ring elements to the point Of compromise,
where all previous efforts toward concilia-
ton had failed.
In the great financial center, the secre-
tary of the treasury, having exhausted
the nilder remedies, and moved by the
necessity for immediate relief to the
money stringency, made some very rad1-
cal changes. Having first announced that
the banks need no longer hold a reserve
of IS per cent against deposits OF gov;
eminent moneys he went farther and
declared that national banks having gov
eminent bonds on deposit in Washington
to secure circulation might increase their
circulation by depositing state bonds, or
other securities of the class usually re-
uuired for savings bank investments to
cover the additional circulation desired.
The best friends Of the secretary have
| not claimed this as the act of a conser-
| vative Indeed, the question has been
raised as to whether he had the legal
right to do this, and certainly there was
no good precedent for it. But Mr.. Shaw
| is part of an administrative force that
in general policy has not stood entirely
upon the closest Interpretation Of old law,
and he has not hesitated to make new
rulings when necessity has demanded.
His actions were prompted solely by de-
sire to stem the tide of liquidation and
ward off from the country the disastrous
effects of a money panic in New York,
| and whatever of minor criticism may
arise will probably be lost upon man
who has the courage to establish two pre-
cedentssin one day.
The country at large presents the view
of a land filled with prosperity yet bur-
dened with the same temporary adverse
conditions that have ruled for a time.
In the matter of the car scarcity the
center Of com plaint has shifted further
west, and the loudest cry comes from the
cattle shippers
AS the great expectations Of last year
are being realized, 80 there Is the promise
that predictions for the period to come
will be borne out In full The Northern
Pacific put out it's annual, showing gros.
earnings of s4o,0eS, 966 or s4,17S126 owe
the previous year, and with the presen
volume Of business along it's lines i.
4 heading to break this record in the mex
showing, and this is true of all north
western roads. The steel corporatio,
earnings foreshadow a showing of s142,
? 100000 for the annual figures, and in tn,
iron and steel trade demand is SO heav,
coal strike removed, it is doubtful
American mills could care for all the ney
business offered Hence it is no grea
wonder that foreign ironsis coming owe
here in Quantity, nor does the increasing
aggressiveness on the part of Germa1
and English manufacturers prove any
thing more than that they are quick t
take advantage of the existing conditions
y and sell their product in American mar
kets while they may.
In the wheat market there is now muo
talk of the competition of the Manitob
crop. 1t is probable this will be fel
- earlier on this crop year than last. Th
! Canadian roads had better facilities fo
: the prompt handling of Che crop, whic
!. makes it probable that the cotnpetitio
will be felt more keenly this fall than las
and not SO much perhaps in the sprins
The sooner this comes the better, sine
this Canadian wheat must be markete
= ultimately. So while this factor, tn
lack Of speculative interest. and dullnes
in foreign markets may operate in som
:, degree to hold down prices for a tim,
" there is no decided change Of sentimer
which in the northwest is favorable
wheat as long time proposition, base
y, ON the legitimate supply and demand ou4
=. look. .- .-r' 49,