The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-15
Sworn Average
Daily Circulation
OF
THE JOURNAL
FOR
Month of October
556,2778
Amount of Advertising
carried by the Mime
apolis Papers for October
The Week in Business.

The Week in Business.
Not since the time when fear Of the
election Of Bryan and the triumph Of the
free silver doctrine hung over the coun-
try has there been such heavy and persis-
tent liquidation in the securities market
as has been witnessed recently. Wall
street has been shaken by severe declines
in all stocks. The shrinkage in values
has been enormous. Since the bear mar
ket began some three months ago. leading
stocks have lost ten, fifteen. twenty and
even thirty dollars a share in current mar
ket value.
The panic and bear market following tho
sensational Northern Pacific corner of
July 9, 1901. Is not a parallel for the pres
ent depression, since that decline came as
the sudden collapse following tremendous
imitation. It brought wreck and ruin in
one quick blow, and then passed away.
The bear market Of to-day began three
months ago with slow crumbling and
gradual wearing away Of prices. Rallies
were made at times and there were inter-
mittent periods of strength, but the ten
dency has been irreslstibly lower, and the
selling movement, gaining impetus from
day to day, burst with great force upon
the market this past week, bringing a
flood of liquidation. So heavy were the
declines that in at least two instances
large blocks Of stocks held by New York
banks as security for loans were thrown
upon the market for self protection prices
having declined to points where the cur
rent values no longer covered the loans
Almost any leading stock might, be
taken to illustrate the shrinkage in val
ues. A striking illustration is found In
the shares Of the giant steel corporation
IT one goes back to the spring of 1901 it
will be found that United States Steel
common stock sold at So and the pre-
ferred at 1918. Yesterday the common
sold as low as 35h and the preferred at
S2%, this representing shrinkage of
$500, 100000 Yet only two days ago the
company issued a statement remarkably
favorable in every way.
1T is not a case Of decline through fear
that the country is in any danger Pes~
sfmisn, to be sure, has been given play,
and we have. been told by English eco
non1io writer's, that the crest Of the Amer
loan prosperity wave has been passed.
Since the bears have had a long campafen
Of it in Wall street. and since a bear cam
~ pafgn necessitates the gathering of all
ninutiae of a nature unfavorable, and the
hurting of 1t IN concentrated form against
the favorable sentiment, we may fairly
conclude that we have heard about every
thing unfavorable that can be said about
the outlook for the future. Yet from all
that has been heard there is nothing to
cause any uneasiness.
There Is not enough money in the United
Suites to do the work, carry on the bust
ness, move the enormous crops, and still
permit OF surplus to carry on speculation
on the former large scale. The New
York banks have been conservative
throughout. and by refusing to ENCOURAGE
speculation have really helped along the
decline. Wherever values are highly in
hated 1t isthe part Of prudence to- look
for ultimate recession. The decline in
stocks has borne out the predictions made
when money first began to tighten I'm
less 1t runs into abnormal depression it
will be good thing for the country.
1T is a, case OF bountiful prosperity
against the fear of something less ia or.
able to come, coupled with inability on the
part Of interests heavily committed to the
long side of the market to carry their
holdings through q period Of tight money
and high interest rates.
It is interesting to note how little the
present actual earnings of corporations
enter into calculation when once a. decline
gets under way. The last statement of
the steel corporation showed a surplus
G.ruaI TO 1927 per cent on the common
stock, and with the common selling at s37
it represents present earning power equal
to 80 per cent. . Union Pacific selling
around par represents Is per cent. Atch-
ison earned Ok per cent last year, yet the
stock sold recently at&S2, representing -
per cent. Missouri Pacific at present quo
tations represents over 10 per cent These
are illustrations taken at random.
People who would buy stocks outright
are using their money to advantage in the
Inarts Of trade, and such money as is
seeking investment is timid and disposed
to await change of sentiment And
people who would buy for speculation find
that money conditions do not favor them
Eventually everything will work out all
right and a readjustment OF values will
besin order.3.,. I. ISL.
Here in thetWest there is no scarcity Of