The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-16
WALL ST. ANTID0TE
Why J. J. Hills Pessimistic Inter
view Did Not Cause Greater =
Generalization.
VALE Street Prophets Had Already
Caught Glimpse of Bet.
ter Things. .....

The sensational Hill interview of Fri
day last in which the Great Northern S
president was represented as very pessi-
mistic, has met a rough reception in
Wall street. If Mr. Hill really said what
was printed as coming from him, his talk.
it is conceded, must have been spontan-
eOus and thrown out without regard to
the possible effect upon the value of Sc
curities held in large blocks by his asso-
ciates. The local financial world is ut
terly at a loss to account for the seeming
inconsistency between the attitude of Mr..
Hill and that of his associates. It is
not often safe to assume what may: be
the position of a big operator by the talk
he puts out. But it is .conundrum to
western men as to why Mr.. Hill, at a
time when the big financial interests of
the street are combining to sustain
Stocks should come west and give out
views that would tend to cause demorali-
cation.
1T seems incomprehensible also to the
Wall street financial writer's that while
Mr.. Morgan, Mr.. Stillman of the National
City bank and Mr.. Baker Of the National
Bank Of Commerce of New York were in
conference for the purpose of devising
stock prices, Mr.. HILL their associate. was
giving out views and opinions in Chicago
that under ordinary conditions would have
caused great disturbance. Mr.. Hill has
in part repudiated the interview, but the
denial came later and the interview was
accepted as authentic at the time it was
received. Why, then, was there not worse
effect in stocks? Probably. the stock
market followers say, because the inter-
views effects were counteracted by the
effect of articles in the New York papers
that day that were more favorable than
any. that had appeared for a long time. All
the New York financial writer's who gather
mi, in, tIn vote 81
Morgan's office and whose views are often
thought to reflect the opinions of the Nor
gan-Stillnan interests, were looking for
a turn for the better. The very day that
the Hill interview was wired from Chi
cago the Wall Street Journal printed the
most hopeful article Of weeks as to the
money situation. It was the feature of
the paper that day, and a help to favor
able sentiment The article follows:
1T is simply matter of patient wait
ing until the turn Of the year. when the
January disbursements have been made
and the money thus released is seeking
employment. r. - ,-.r. 49,.
Currency has never failed to come to
New York by millions every week from
the interior during January, February
and March in every one Of the last thirty
years. as the clearing house bank state
ments show and there is no reason to be-
lieve that the winter of 1923 will be first
II
1.-THE early freezing weather has
checked the demand for currency in the
west and south. When outdoor farm
work is no longer possible the need of
currency ceases. e5-.S+ Fac So II s.
Currency cannot be(locked UP in land
specula ton nor in any other Speculation.
It may be boarded, but not while bust
ness is active. Bank credits may be ex-
hausted and the ownership of money may
be transferred, but the volume of cur
rency available for bank reserve is not
changed thereby. This currency flows as
certainly into banks after the crops have
been harvested and the holidays are over,
as it flows outward to the interior at seed
time and harvest. The surplus reserve
of the country banks comes to New York
then, partly in payment Of debts8to New
York merchants, manufacturers and
bankers, partly for safety. and to some
extent to earn interest while it is not
needed at home. ~
The existing phenomenon in the money
market occurs every December when the
country is blessed with prosperity and
business is active. In 1893 money on call
loaned all through, December at L to u
per cent and in the last week of the
month went begging at per cent"