The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-09
BANKS WILL GAIN
Financial Age, Discussing the situa-
ton Thinks May Will Be
Good Month.
Hopes for the Reform Of the Cur
rency System Brighter Than
Ever.
Special to The Journal.

Special to The Journal.
New York, May e.-The Financial Age says:
IN p to dseo4er the
an unusually accurate index to the position Of
the banks, which each month has been similar
to that Of the corresponding period Of the past
half dozen years Thus April has resulted in
cash gain, as has almost invariably been the
case. It is probable that May, also, will fol
past five years. in which event it is reasonable
to expect that the banks will more than hold
In May. 1902, reduction in loans was SIS
decreasing s52o,soo. The surplus, therefore.
Loans in 9 1sol 1 DECREASED SIS Which
caused the surplus to go up s4,4os. 275. cash
increased si262so 900 during May. ' but loans also
expanded $25,720, 900. so that surplus increased
rh gain than e1se dufns Mh
the surplus advanced SIS. 4os, o45, the largest
increased s1s.57eo $50: in May, loans sls.b7e, 300
and surplus SO, 1e9925 1t will be that in
three of these years the increases We're caused
by heavy currency receipts and in the others by
| heavy reductions in loans.
| REFORM IN THE CURRENCY SYSTEM.
AS the crop moving season approaches there
is noticeable renewal Of interest and discus.
congress rectifying the governments currency
system The opinion prevails in well Informed
the Aldrieh bill viii be introduced and support
| ed by the republican majority. In fact, 1t Is
now being held for the purpose Of drafting such
measure. The prospects Of more elastic
currency are brighter than ever before, the
dominant party having been forced to realiza-
tidn Of the needs Of the business community:
which is almost a unit in favor OF a remedial
measure. No permanent relief from periodical
monetary disturbances can be looked for until
such law is enacted. and it is peculiarly un-
fortunate that the banks are compelled to cope
tHo r. Nf no
| summer without the assistance Of any OF the
relief measures that were introduced at the last
! session of congress.
STOCK MARKET LETHARGY.
One explanation Of the lethargy that exists
in the stock market is the unwillingness of the
banking interests to encourage activity for the
the fact that within the next few weeks many
large syndicate payments must be made, IN ad
diton to the possibility Of gold exports ha ahnas
OH account of the Pennsylvania Railroad new
stock issue, the New Haven stock issue issue, tn tn,
Seaboard Air Line bonds, the Wabash bonds, thu
United States Steel conversion plan, the Lacka
wanna steel bonds, the Metropolitan securities
payment and such h as be be tn
Underground Electric Railways Company O.
London. Under such circumstances 1t Is vel
any speculative demand for money at this time
would certainly unsettle the easy conditions
still another. and to stock brokers more ex
asperating cause Of the present dullness. is thu
Indifference of the publ1c-the army of indie
pendent spectators who make times -eithe
good" "bad' In Wall street The profes
sional element has been taught by experience
that "a burnt child breads the fire, but 1T is
matter Of than passing comment that thu
burns inflicted two years ago have not We
healed sufficiently to induce the victims to re
turn. Demonstrations of bulls and bears hav
alike proved ineffective, the Indifferent attitude
Of the public having remained unchanged II
spite of stock market demonstrations such a.
ordinarily meet with a quick response.
:. AS TO GOLD SHIPMENTS.
Gold shipments last week were precluded b.
a marked advance in sterling exchange in Paris
While the probability of shipments to Paris wa
thereby decreased, if sterling exchange at New
York continues its upward movement and tn
Bank of England does not lower It's discoun
rate, gold may be sent to England direct. Ex
: change authorities Of the opinion that tn
preparations being made for the Forthcoming
Transvaal loan is the true cause of the recen
strength in sterling In this market and in Paris
and of the maintenance Of unusually hig
discount rate by the Bank Of England. Whe
+ | the loan has been taken this discount rat
should fall. Our bankers have already remtte
some money to London for subscription to tn
new issue, and when the entire loan is place
the question Of gold exports will cease to be
disturbing factor.
: Railroad earnings continue to make spe1
did showing. and the satisfactory reports issue
a last week created a very favorable 1mpresso
n in investment circles. The increase in som
. cases, notably that of Missouri Pacific, we1
phenomenal, and further rumors We're currer
:. of an intention to distribute a portion of tt
:, | extra profits to the stockholders by the pa.
= ment of extra dividends. 81