The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-13
The Week in Business.


AS the days pass and the. year draws
toward the close, monetary conditions
show no tendency towards Improvement,
and the situation becomes more strained
from time to time. While business in the
regular channels of trade is active, COM
mercial houses report satisfactory re-
turns, jobbers and manufacturers find
demand seasonable and the holiday trade
is large and increasing, the money mar
kets remain unsettled. %2*+>Is z : &@z.;5<
The past week was marked by, increas-
ing tendency on the part Of the New
York banks to draw theHlines tighter and
curtail loans. This always strikes hard
in Wall street, and so we have had flood
of unfavorable news and an abundance of
pessimistic talk that always accompanies
q decline in stocks.
There is nothing unusual in the present
attitude of the banks, but on the con-
trary> it is their established policy to be
more conservative in the matter Of loans
during December, and be prepared for the
heavy disbursements of the first Of the
next year. This time it comes especially
hard for the double reason that there is
a tight money market anyway, and the
disbursements to be provided for are I'M
usually heavy. 1t is estimated that when
all the great corporations with financial
headquarters in New York shall have sent
out checks for interest charges, and divi-
| dends to stockholders to- Jan: l., the
| amount so disbursed will be the largest
ever known-possibly in excess of $780,
| 900, OOO
| The actual drain in cash will be small.
| Much of the money will Immediately seek
new deposit or reinvestment. Through
the clearing house system drains on one
bank will be- offset by gains from others,
and the process of adjusting the dtsburse-
ments will consist largely Of the trans
ferring of credits from bank to bank OF
from one account to another, yet no bank
can foresee to what extent it may be di-
rectly drawn upon, and preparations must
| be made to meet all demands. This
makes the chances of easier money for the
remainder Of the year very remote. r.,
| We have had a general turning aside
| this week from the old talk Of continued
prosperity and expansion. The country
has been expanding too rapidly, there
has been too great extension of credits
! everywhere. There is needed a period. o.
quietness that the country may catch UP
for we cannot go on spreading out for
ever And the possibilities suggested b,
the trouble in Venezuela have helped alon,
the tendncy towards conservatism. s
Seasonable weather has been help III
the retail trade lines. Minneapolis
shows, on the whole, however, smalle
total volume of business for the week a.
indicated by the comparison of bank clear
ings with last year, which is not peculiar
as nine of the twelve leading centers shov
material declines. ,ss 49,.
There was a remarkably strong whea
market this week in the face of man,
things that ordinarily would have worke
for depression. The Canadian govern
year was bearish, our own government
! report of the growing winter wheat ex
tremely bearish, and many other item
were of the same tenor. We exporte,
only s,761, 047 bushels last week.; agains
5,704,440 in the corresponding week las
year. Yet May wheat advanced owe
2k cents. ,.F
The legitimate grain trade cares little
however, for depressing news as to TIL
future while we are on an immediate ex
port basis at the seaboard, and are sell
ing wheat to Europe as on Tuesday
when over 100000 bushels were taken
The South American imbroglio has ais
been a consideration on the part of tn
more venturesome of the speculative ele
ment. While the probability of our coun
try becoming entangled in the Venezuela.
mix-up seems very remote, there can b
no doubt that the effect upon America
speculative markets would be very dis
: turbing should we become involved wit
the great powers.
I There doesn't seem to be any wild en-
thusiasm for q primary law in this stat,
: | Minnesota has tried it and doesn't like i
On the other hand the people are prett
well satisfied with the results as we fin
$ them in South Daketa.-S1oux Falls Al
: gus Leader.
i !, How, do you know Minnesota doesn
a like it? It doesn't suit some of the pol
i ticians and the law undoubtedly is nj
g perfect; it fails to do some things whic
f the friends of pure politics and good go,
eminent would like to see done. But
: it was expected to check ard does it q
q fectiyeiy. 'Fsat may be one rsasen WI