The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-02
BANKS GET READY
Financial Age in It's Weekly Re.
view Says Financial Institu-
tions Are Well Fortified.
The Next Six Months Are Expected
to Put Their Resources to
the Test.
Special to The Journal.

special 60 tho journal. n
New York, May 2.--The Financial Age says;
Altho monetary considerations have played an
untmportant part in shaping the course of the
stock market during the past few weeks they
are again assuming their old position Of dominant
factor In the future of the situation. Too much
stress cannot be laid on the fact that the next
SIN months will tax the resources of the banks
TO an unusual degree; the heavy disbursements
incident to the Panama payment and the dota-
t1on or various bond issues, the maintenance of
trust company reserves and the large crops, have
already been discussed in these columns. The
expenditures necessitated thereby may or may
not be exaggerated, but the fact remains that the
resources Of financial institutions are being forth
ned 70 greater extent than is usual at this
season: Bankers are unit against general
extension of credits during the coming summer
months, and stock market speculation cannot
therefore, assume the proportions that it did last
August, when, despite the entrance OF the crop
moving period, 1t was permitted to pass beyond
the control of those who fostered the movement.
bankers and spectators alike have learned a
Lesson less from the resultant depression Of the fall
sentative interests will again be compelled to
mete out the severe punishment that was in
hicted upon the leaders of the ill-timed bull
campaign which ended so disastrously.
Gold Shipments.
Considerable interest centered in the ship
ment last Tuesday of $500, 600 in gold for the
account Of Philadelphia bank which it was
transactions by gold shipment. The recent
rise In the foreign exchange rate has led to
considerable discussion as to the probability of
further shipments within the next few weeks
Foreign exchange brokers are inclined to the
bellef that a further advance will be followed
by heavy drawings of finance bills and sterling
loans, which will serve thru the offering Of
bills to prevent shipments of the yellow metal.
The rise in London's ratio Of bank reserve to
liability to the highest figure reached at this
period IN several years will be likely to prevent
IT affords assurance of the ability of English
banks to assist us during the ensuing months,
when our own surplus funds must be carefully
The Franchise Decision.
The decision of the New York court Of APP
peals In declaring valid the special franchise
law had but passing effect on the stock market,
being but temporarily depressed. This decision
sustains the constitutionality Of the law as a
whole The decision not altogether unex-
pected, and. altho it will mean a loss of more
than $5,o0o,oo0 annually to New York city cor
porations alone, preparations had been made to
meet the necessary outlay. 1t is unlikely that
the payment Of the back taxes will cause the
several arrangements any embarrassment.
The Railroad Outlook -
The railroad outlook is very encouraging heavy
traffic being reported all lines, and monthly
earnings showing general increases in net and
gross earnings The excellent crop conditions,
and the activity in manufacturing are primarily
responsible for these favorable reports, which
have led to the circulation of rumors of in
creased dividends. It is probable, however, that
the increasing surplus accounts will be used for
betterments rather than dividend purposes, the
extensive Improvements planned by most of the
big systems and the numerous bond issues foated
within the past year making necessary the main
tenance OF large cash assets. Among the i'm
portant railway earnings reported during the
week were the following Minneapolis & st.
Louis gross decreased $62, 800, and net decreased
$33, s37; big Four gross increased 1924 $40
and net increased 1876; Lehigh Valley. gross
Increased 81, O22 1914 and net increased $685. 81
Peoria Eastern, gross increased $56310, and
net increased $6079; Southern Railway, gross
increased $56s, Ais. and net increased, $143, 1874
81 .2S3, PSI.
The labor outlook has improved considerably
strikes that have disturbed the harmony Of the
industrial situation having been declared off and
a truce arranged in others. Powerful influences
cable relations between capital and labor, and II
is to be hoped that their efforts will be rewarded
with success. y