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

The financial world has recently had
the benefit of a number of opinions
respecting the general outlook for con-
tinued prosperity in our country. Rail-
road managers, prominent merchants.
bankers and other practical men, each
from his particular point Of view, have
sized up the situation.
Some opinions were favorable, some in
clined to conservatism, few rather dis
couraging. This week brought another,
perhaps the most important OF all, in the
form of reassuring statement from a.
hnancier whose opinion any subject are
rarely given for publication. Mr.. J. P.
Morgan has told whoever cared to read,
that in his opinion the pessimism that has
dominated the eastern money market
finding expression in declines in stocks, Is
being overdone.
No one was surprised to learn that Mr..
Morgan Is bull: indeed Wall street would
have been, surprised beyond measure had
he declared himself otherwise. 1t Is MIR.
Morgans business to be bull. In greater
degree perhaps than any other man, is he
committed to that side.
His statement was about what anyone
familiar with Wall street might have
sslzetched in the rough before hand, had
it been known that he was to give an
interview. What surprised the street was
that this great f1nancler, who has the
reputation Of being practically unar-
Iproachable with reference to matters Of
personal opinion for publication, should
come out voluntarily with statement
Some saw in 1t particular significance
others placed an exactly opposite interpre
tAtion upon It. Perhaps it had no specia
Significance beyond the fact that in Mr.
Morgan's honest opinion the street i!
overdoing 1t. The stock trading body dis
counts the future farther ahead than an,
other speculative element. There ha
been In the air the scent Of period Of re
taxation to come later, a period OF gradua
slowing up Of the rapid pace, Of lowerint
of the high tension. The traders In tn,
stock market, seeing this foreshadowed il
the far distance have been anticipating 1
in their plans. and in Mr.. MorEan's opin
Ion they have discounted it to the full
instead OF further declines, recoverie
should now De the rule. sI'.
It Is a fact, however, that many of Mr.
Morgan's neighbors do not stand with him
and that the confident views expressed re
garding the merit Of many Of the hug
new capital issues of the past few years
do not meet endorsement at the hands o
other financiers Of recognized ability an.
conservatism. These men who hold all,
for some time have held the opposite view
and whose judgment to the present tim
has been right, are all pronounced be
lievers in the soundness Of our countr,
and of the possibility of maintaining con
ditions of prosperity for a long time t
come. But they fear that unless there
enough Of depression in the stock mar
ket. over a long enough period to put
halt upon the activity of the promoter
the remarkable prosperity may be rudel
interrupted by the constant creation
new securities at inflated values. Th
practice OF floating huge enterprises, an
more recently Of converting stock issue
into bonds at high prices to provide CON
missions for operating syndicates, ht
been continued, until, the conservative
believe, there must be a let-up for a tin
at least, and the country can catch I
and a larger portion Of the mass Of III
digested securities is disposed of. And i
majority argue against any sustaine