The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-18
And Its Absence Has Made Serious
Trouble in the Stock
Market.
Commercial and Banking Conditions
Never Were Better Yet
Stocks Go Down.
Many Prominent Issues Have Estab-
lished New Low Records in
Past Week.
New York Sun Special Service.

New York Sun Special Service.
Chicago July 1S.--Walter Wellman in a
New York special to the Record Herald
says: M
What is the matter with Wall street?
During the last week new record of low
prices has been established in many
stocks. In fact, 1t is an open question II
a considerable number of sterling securi-
ties are not already down to the bargain
level. This would surely be the case If
confidence were normal-if the minds OF
the spectators and investors were in
their usual condition But confidence Is
at low ebb. This Is to say, confidence In
stocks. Confidence in the general pros
perity Of the country continues undated.
This Is one of the anomalies of the situa-
tion. The country is conceded to be all
right. No one whose opinion is worth
anything fears an early diminution Of the
remarkable trade activity which has
marked the last two years. That it is
coming sooner or later everyone knows.
This is a mathematical proposition But
1t is not yet in sight, and when it does
come, be 1t soon or late the prevailing be-
lief Is that 1t will be in gradual letting
down rather than a sudden collapse.
Banking Conditions Good
The president of big trust company
told me that the general banking and com
mercial conditions turnout the country
were good I asked him if credits were
strained to such an extent that when the
reaction comes and everyone wants money,
and wants it badly, at the same time, we
were likely to have a repetition Of the
occurrences of 1898, when one weak and
shaky house toppled against its neighbour
and dragged 1t down too. His reply was
interesting:
Credits are not strained, generally
speaking" he said. st would be more
accurate to say that they were in use
just about up to the safe working limit,
but not beyond that point. What I
mean is that we may say the credit boiler
Is built to work at 100 pounds pressure.
1t is working at about SIS or 90. The. dan
ger line has not been touched. Condi-
lions are much better than they were in
1898, and, while a reaction must come
sooner or later, 7 do not expect any such
times as we had in '93 and ga.
Lack of Confidence.
Clearly there Is nothing In the general
business conditions OF the United States
to warrant the low prices In Wall street.
The low level Of this week is ascribable
to two principal causes, one intimately
connected with the.aother. The first or
natural cause Is the weakened confidence
of the speculative and investment world.
Confidence Is a peculiar quantity. It Is
potential yet fragile. Above all 1t is err
ratio. 1t has its wide fluctuations, and at
either extreme it is likely to go much far
Their than the facts warrant. During the
recent boom period, the period of promo
tion. organization and reorganization
combina ton and wealth erection, thru the
magic process Of printing and engraving
values, credit ran at full voltage. Any
thing and everything was possible. There
are apparently no limits to what could be
done by these methods. Every one could
get rich with half an effort The Missis-
sippi bubble and the Tulip mania in Hol
land were mere drops in the bucket com
pared with the mighty flood of fictitious
inflated false wealth.