The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-26
The Business Situation.

dresses. p ~
The Business Situation.
There Is an old stock market saying to
the effect that when everything appears to
be going to the dogs it Is usually time to
look for a change for the better. If there
Is any virtue in this, II it be true that IN
the midst of an excess of bad reports
when dependency is the rule and every
one is blue, there often comes a quick re-
dictionary turn, then 1t would appear that
such a turn should be about due, and
something moro favorable should now be
heard, even If only temporary In nature
One may go back almost five years
without finding a week in which in the
so great preponderance of unfavorable
items, as in the week just closing. It
would almost appear that the worst has
been heard and that next week the daily
developments must of necessity be more
favorable. Allowance must, of course, be
made for the facts that a great bear cam
Ipaign Is still on in the stock market, and
that something of the gloom Of the flnan-
cial center colors all reports that gain
publicity by way OF Wall street. Yet even
with it's allowance. the pronounced bear
lishness of the leading features Of the past
week cannot be gainsaid. There is evil
dence of serious changes working into the
industrial situation. The troubles at the
Canadian 500 bear very indirectly, yet the
reports Of the many idle men there have
not been reassuring. There Is trouble in
the Colorado mines, still some disaffection
in labor around the lakes, and eastern
shipbuilders are discharging numbers Of
men. Iron trade authorities say produc-
ton must be reduced, as demand has de-
creased materially. Rumors are rife of
the cancellation Of orders for steel pro-
ducts, and a number of pig iron furnaces
are shortly to close The question has
been raised as to whether the present
wage scale in<the great iron making cen
ters can be fully maintained. There is
talk of lessening the work generally in the
coal mines, and the men Of the Lehigh
company will beordered to knock off work
on two days next week. From northern
Michigan comes word Of the prospective
laying off Of men in the mines. The Cen
eral Electric company announces that it
will be necessary to reduce the working
force by large number. Every impor-
tant manufacturing center in the country
sends labor news, most of 1t somewhat
less favorable. There Is Stacking of
effort in prospect in the great Industrial
field, the disposition of buyers Is to go a
little slower, and this and the fact of re-
cent record breaking emigration, suggests
the possibility that this winter, for the
first time in years there may be sprink-
ling Of idle men in the cities.
In the face of this the demands of labor
are not moderating but in some Instances
are increasing. At home there Is the strike
of the men in the flour mills. Whether
the men will win, or whether in view of
the changing labor situation and the near
approach Of winter their strike will prove
to have been ill-advised and untimely is
foreign to this article It is a fact that
the Minneapolis strike has been bad for
sentiment the country over. Business
men far removed have taken the sudden
outbreak here as indicative Of an even
greater general feeling of unrest and in
stability than they had supposed existed.
The effect has been to increase the feel
ing Of timidity on the part of employers
as to commitment to long time plans in
volving the employment of large numbers
of men.
This plethora Of bad news has been am
munition for the bears. The movement of
currency to the south is now at maxi
mum, and with demand from the west
now beginning the money situation Is the
topic.
In vain has it been pointed out that
there are numerous favorable signs; that
the country is sound and solid as rock;
that the west and especially the north
west have money, and the people are very
prosperous; that good business is in sight
and railroads are showing continued in
creases in earnings. 1t is useless to put
forward the good things now, for the
great depression Is still on and many con-
sidcrations ordinarily important are
brushed aside. The bad news Is empha-
sized; the good news is passed over
Even while the money situation is cited
as one cause for, depression in prices Of
securities 1t is possible to show that call
money in New York this week has been
2 to 21z per cent ard year ago at this
time it was 81 per cent. Nothing can stop
the downward swing, but this week there
has been hope that liquidation has finally
spent it's force in stocks, and that some
thing Of recovery with accompanying ben
eflcal effect upon general sentiment in all
lines the country over, should now be ex-
pected.
The Minneapolis wheat market suffered
heavy decline during the first four days
Of the week. due principally to the labor
trouble. December wheat, selling a fort
night ago to SAGE, fell by successive de-
flinea to the 75c level from which low