The Minneapolis journal., 1903-04-18
The Business Situation.

The week was marked by developments
OF an extremely unfavorable nature in the
local business field resulting in the tenn
porary suspension of the city's greatest
Industry. The closing of the flour mills
means the throwing of many men out of
employment which is the worst feature
There is besides the lessened consump-
tlon OF wheat and resultant state of COM
parative inactivity in the local cash wehat
market, the loss Of tonnage by the rail-
roads,, and the fact. that the falling off
In the output will make new record Of
production for. this year more difficult
OF attainment. So long as the shut-d
continues the effect will be felt by the
banks and clearings will be lighter, -:
Let no one imagine, however that these
conditions will be maintained for any
considerable length of time The present.
situation IS bound to- improve. So much
mas been printed on the subject of the
discrimination i'm freight rates on wheat
as against flour since the mills first began
to agitate the question, that many read
ers are acquainted. at least in a general
way, with the matter One need not be
a miller toIunderstand that freight tariff
which imposes 3 1-3c as the cost of car.
ry1ng 400 pounds of wheat from Duluth
TO Buffalo, against charge of &c for 100
pounds. Of -four puts. the northwestern
miller at great disadvantage as compared
with his eastern and foreign competitors.
The millers do not ask or expect an even
basis For. the difference in the two
commodities the comparative ease Of
handling the raw material and the facili-
ties; existing for loading and unloading
1t expeditiously, lower rate is likely to
existtat all times. But the millers con-
tend that when the difference between
the two rates becomes S. wide as to
threaten the milling industry, the rail-
roads; should show their loyalty to the
mills by such readjustment Of rates as
viii equalize matters. When the roads
oeg1n to see that their firm attitude in
the matter is likely to mean a heavy loss
OF tonnage they may be brought to view
the matter in another light. They are
not going to kill the goose that laws the
golden egg. And If the result of the
closing Of the mills shall be- to imnress
upon the roads the Importance, the
necessity of a more liberal attitude
towards Minneapolis in the matter Of
rates, then the temporary losses and an
noyances Incident to the closing Of the
mills will be as nothing compared to the
advantages that will accrue to tbs citv
in the long run.
But for this unfavorable develonnent
In the milling trade the week has been
a good one for Minneapolis All the lead
Ing business lines engaged in the dis
tribution of merchandise over the north
west report good demand and collections
easy.
Seeding for spring wheat has taken nm
the time OF the farmers and in conse-
auence there is the usual falling off in
demand at many country points.
In the financial and commercial centers
interest is gradually turning towards the
southwest, where the wheat prospect is
extremely favorable. Wall street has
thrown off the gloom of last week, and
while conservatism and caution still rule.
there Is disposition shown to take a
more hopeful view of the outlook. If the
winter wheat crop should come to ma
turity with conditions anywhere near
where they now are, there would be the
largest yield i'll the country's history. In
deed, If conditions should turn so un-
favorable as to cause loss Of 100 0O0, 600.