The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-29
Business Prospects Good.

ouS1ASSS L AOSpSStS Oooos
Next week Is likely to witness the first
call Of the west upon the east, the be-
ginning Of the demand for currency to
move the crops. Soon the money stream
will be flowing in steadily increasing vol
unne from east to west. How heavy the
fall demand will be no one can foresee,
but there Is nothing in sight at the pres
ent time to indicate that the requirements
will tax the country beyond Its capacity.
Some time ago, when the stock market
showed price levels very much higher
than at present, the prediction was freely
made that q money panic would grip the
country In the fall, this prediction, IN
fact, first coming out as long ago as the
day following the defeat OF the Aldrich
financial bill at the last session Of CON
gress.
Since then, however. a change has come
over the situation. The great bear mar
ket In stocks carried down prices ire
mendously, but this was after all Its
lesser effect. Principally it put an end
to the craze for combination, consolida
ton, the exploitation of new schemes. and
the flotation Of new securities. Thru the
prolonged decline many older and better
established corporations have had
struggle to maintain themselves. and
some less stable individual companies
have been crippled. Combinations not
yet quite beyond the formative stage
were wrecked, a score Of half-natured
plans were abandoned and a host of COM
to-, In1
There is to-day no trade or profession
quite so dull as that of the promoter.
Syndicates and pools even are impossible
at this time. New companies are not
being born every hour as was once the
case, and even the oldest and soundest
railroads do not find it a good time for
new stock or bond issues. 1t is time Of
rest from the prolonged period Of over
doing, and 80 it is not surprising to note
that the sales Of stocks on the New York
exchange Thursday OF last week
were the smallest since August, 1900 This
dull period which is likely to continue for
a time yet, gives opportunity for read
justment, for the gathering up Of loose
ends and preparation for new start on
a. healthier and sounder basis. THE.
eastern financial institutions, meanwhile,
are in much better position to meet the
demand for money for legitimate business
purposes. E's
During the week the story became cur
rent, and met with half confirmation, that
Secretary Shaw has been setting aside
internal revenue receipts and has &C.
cumulated s40,000,00 In a separate fund,
to deposit with the nations this fall in
the event of financial stringency. One
thing that tends to promote stability is
the fact that the best element in Wall
street has confidence in the secretary and
in his ability to handle any emergency
that may arise. 1t has been the general
policy Of the office to keep the money
moving and prevent accumulation. The
national banks now hold about $145, 900, 900
OF government money for which the treas
ury is secured by deposits Of government
bonds to the extent Of s127, 900, and by
approved state and municipal bonds to
the amount of s1S,O00,0Oo. A surplus of
about $40, 000, 900 now lies in the treasury
which the secretary will undoubtedly put
out on any call serious enough. BY
shifting so much additional money into
the national banks (and accepting state
or municipal bonds for security the loan
ing capacity Of the national banks can be
increased almost s120, 900. There are
government bonds aggregating $4,000, 900
that will mature in February next and
the secretary has the power to anticipate
their retirement should 1t appear desir-
able, and there are other expedients open
to him. AS for new financial legislation,
1t is the belief in Wall street circles that
something in the nature of a mild uncon-
troversial bill will be introduced
Much money will be needed In the west
While the movement Of grain has been
much delayed, It will come in finally.
Early frosts alone can now prevent the
maturing Of a fair average corn crop.
Eight leading railroads, centering in
Chicago, report enough cars to handle
their fall business. Since last year these
roads have increased their car equipment
1887 per cent, motive power 115 per cent,
yard trackage 10 per cent and general
equipment &c per cent
The feature in the traffic field is the
volume OF general merchandise moving
into the west much Of which goes at once
into consunptiont The movement of
grain to the seaboard is light, which is
not surprising when 1t is considered that
the primary wheat movement is over
5000, 900 bushels behind last year. Against
this there Is a tonnage Of coal, iron and
steel heavier than ever before known In
August There are some signs Of less
ening Of internal trade, but many indica-
tions Of an increase in foreign trade.
The movement Of spring wheat will be
the determining price factor from now on
The weather this week has been very ba6
for threshing and the effect will be t.
delay shipments from the country. Casf
wheat In Minneapolis, meanwhile ha,
settled into middle ground and while 16.
under the high point recently touched, i.
i1Sc higher than a year ago at this time.
It is interesting to note that eminent
foreign financial authorities see goot
times in sight for America. 1t is not only
that London and other foreign market
have sent investment buying orders TO
American securities for this our owl
investors have done. Rather it is the fac
that the foreigners see continued activit.
for the stable American business lines. 4
Berlin authority, q director OF thu
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