The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-08-21
WHAT CLEWS SAYS.
Business Conditions Are Go0d-.-No
PeSSimeStiC Talk.

for the better has taken place in the
stock market, and the sharp rise which
started on Thursday quickly dispelled the
wave of dependency that threatened the
days ago. So sudden a change was of
course largely due to manipulation, bas-
ed upon the change of position by some
of the big operators who exerted such a
severe and persistent pressure upon the
market for weeks past, being assisted by
an organized effort to check and punish
the aggressive bears. 1t is of course
impossible to learn whether the market
leaders have fully accomplished their
purpose or not. The presumption is that
they have, or the market would not have
been allowed to recover in the rampant
fashion that it has done. 1t is quite GER
tain that the decline of the last few
months has been materially intensified
by speculative operations to accomplish
certain purposes, however much natural
conditions may have justified lower
prices, and it is equally likely that the
til normal level is reached. No one pre-
tends that there has been any change in
intrinsic conditions during the last six
months to correspond with a drop of 80
to so points in good securities. Grant
ing that the top of the boom was touch
ed last year, that the tide of prosperity
has begun to recede, that there is still a
large amount of unmarketable securities,
and that we have been OVERRIDING gener
ally, there was no warrant for a decline
in stocks so utterly out of proportion to
other changes. a part of the decline was
certainly intensified for speculative pur-
poses, and if it proves true that these
have been attained stronger and active
market is in prospect.
| Wall street has undergone a pretty
thorough test. Many weak spots have
been eliminated by forced liquidation;
stocks that have passed from weak into
strong hands. and thus the whole specu-
lative situation has been much clarified
| by an unwelcome but necessary house.
cleaning process. The market is by no
means free from uncertainties, for weak
spots still remain; but there is no reason
now for the destructive distrust which
was undermining the whole financial ia
brio before the turn came. Very likely
important developments will follow re-
cent operations. Control of some prop
critics has undoubtedly changed hands,
which may result in facilitating some of
the larger deals that big financiers are
known to have contemplated. How far
these plans may have been a factor in
| the conduct of the late bear campaign
will never be known, but it is fair to
credit its managers with sufficient
shrewdness to take all fair advantage of
technical conditions.
Outside of the stock market the out
/ look is satisfactory. As previously stat
ed, our farmers are reasonably sure of
another season of prosperity. Though
! probably, and, what is equally import
ant, good prices are assured for all agri-
cultural crops. The government report
indicates corn crop of 2,245, 100000
! bushels, which has been exceeded only
twice: a winter wheat crop of 100000
900, which has only been exceeded twice,
and a spring wheat crop which has been
surpassed four times. OF cotton fair
sized crop seems certain in spite of back
wardness, and good prices are assured
another year. For all our agricultural
products a good demand is practically
certain, and in the absence of heavy
growers will receive profitable prices,
this being particularly true of southern
cotton planters. Some reaction is no
ticeable in the iron trade, which is our
basic industry, but lower prices are like
" to invite fresh run of orders which
could not be profitably placed at the old
level. Labor agitation is diminishing
and contractors know better what condi-
tions to figure upon. The decline In
stocks seems to have temporarily check
ed new enterprises, but this will cause
no harm. as conservatism now will pre-
vent trouble later on. The textile situa-
ton is confused by scarcity and specula-
ton in cotton; condition that will be
changed by the arrival of the new crop in
another month or six weeks.
The monetary situation has been much
relieved by local liquidation and pay
ment of foreign loans. More concern
at the high level of loans is shown than
circumstances warrant, considering that
the surplus reserve is $20,000,000 above
the 25 per cent requirement. Loans are
but slightly above deposits, while 1t
should be remembered that the banks
could in addition loan upon their capital
and surplus, amounting to considerably
over $200,000,000, and still be within the
limits of prudence. As a matter OF fact
the New York banks are in strong condi
ton and have their funds well in hand
Liquidation may have cancelled many
weak loans, but the funds thus released
have been transferred to those will
stronger credit, thus improving the situa
ton without making any apparent
change in the volume of loans. Very
shortly crop demands will assert them
selves, so easy money rates are not ye
in prospect. The chances of serious
stringency, however, are remote, for con
ditions are growing more favorable t
, gold imports, besides we shall have lttl
difficulty in borrowing abroad for legi
: innate requirements. A favorable Tea
ture is the large purchases of wheat TO
= export and the declining tendency OF for
eign exchange. Some realizing may b
expected after the late sharp recovery
but the situation has been greatly i'm
{ proved by the diminution of the suppl,
{ of weakly held stocks. A better invest
: ment demand exists than for severa
e months, which has already taken larg
: supply of bonds and stocks out OF tn
u street.
G. NJ. Wasgatt, aged about eighteen
son of w. M. Wasgatt of Albert Lei
t fell while playing tennis and burst
e blood vessel near the knee. After bein