The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-16

GAUSS VI Tic uGpIeSS1O1l, DOlL Ill Id11-
road and industrial development, lies
the fact that the investing public alb
solutely refuses to commit it's money
to the PRONUNCIATION of new enter
prises. The market of Amsterdam,
the market of London, the market of
Berlin-the three great reliances OF
American railroads in the matter Of
turned their backs upon American in
vestments. Even the abiding faith of
the bankers of Holland has been Sc
Verely shaken. Hundreds Of thou
sands of shares Of American securi-
ties have come back to America from
Europe within the past two years. 1t
| is conservativelys reckoned that the
present foreign holdings of American
| stocks do not total per cent of the
amount Of American securities held
abroad at the beginning of 901. Lon
don has turned to Argentines, Kaffirs
and Canadian stocks and bonds. The
result could not be better illustrated
than by the simple statement that
the Grand Trunk has just placed in
London nearly 100000 Of 4 per cent
stock at 971a-a price that could hard
| ly be obtained for any American 4
per cent securities, other than first
class, ,gilt-edged first mortgage bonds
on excellent railroad property.
Big Enterprises Abandoned.
T. IL Is OI record llaI TWO Syuu1CdC0S
formed less than nine months ago for
4the purposess@of putting up. big office
structures Yin New York city, have
since disbanded and given up for tn
Epresent,. at least, their intention Of
Investing capital in this way. These
two Withdrawals alone mean the with
drawal Of SO ,O0O,0 900 cash from the
work all over the city. The yellow
press estimates the total amount OF
capital so withdrawn at $1O0.000,O00.
More conservative estimates range
from $50,000,000 to $60,000,000 in
New York city alone. Pittsburg, Chi
felt the same influence. It's most d.
rect effect is to be seen in the fact
that United States Steel and United
States Realty. have both diminished
their dividend payments on this &C.
count, the former cutting it's comm or
'dfvident in two, and the latter pass.
ing it's preferred dividend entirely.
Wall Street Expects Benefit.
Strange to relate, students of stock
think that the result to the stock mar.
ket will be rather favorable than
otherwise. 1T is speciouslys argued
that If s10O,0OO,00O of capital in New
York city alone is deferred from in
vestment in legitimate business en-
| tGIpIlS d SOOu part I'll lIldt
released from the demands of thu
mercantile world, will find it's wa,
into Wall street in one form or an
other. It is a noteworthy fact tina
the tremendous crops Of the yeal
have been moved without the usua
money stringency in New York
Money that was needed to move tn,
eros was released from the mercan
tile and industrial departments Of tn,
country's business, instead of, a.
usual, from the Golfers of Wall street
: Call money in New York to-day i
| loaning at 2 and 2h per cent. Tim
! money over the end of the year i
; offered at Az per cent, an absolutel.
unprecedented low figure for tim,
, loans on such duration. The bank
are in absolutely the most powerful
position that they have held at thi
: time Of the year within the memor,
! of Wall street veterans. With tn
7 tremendous amount Of capital tina
must be at the present time lying idl
! in banks and trust companies thruou
, the country, and with constant sup
ply Of such idle funds thru the gen
! tailment Of labor, there can be littl
: prospect of money stringency in Ne1
York's speculative market.
How long it will take this i'd
q money to begin to find it's way int
q Wall street for the purchase Of stock
. anu EDOIUS lS Qulle dIlOlIleT QueSLlOI
= Generally a condition such as thi
), finds it's first reflection In the pur
? chase Of first and second nortgag
: bonds and Of high class securitie:
. This movement has just begun, an
: it is upon its beginning that the NOR
8 Eoptimistic Of Wall streets experts has
Q their belief that the market wi
shortly mend. It looks like a con
test between the depressing inffuenc
of curtailed industry and the elevat
y ing influence of plentiful cash.