The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1903-08-07
Crisis in Wall Street Appears to Have
Reached the Limit.
Improvements May Now Be Expected
With Few Set Backs.
Experts Diagnosis Recent Attack as
One Of Financial Gastritis.
Legitimate Trade Will Not Suffer For
tIle Want of Cash.
From Mondays Daily.

From Mondays Daily.
New York, Aug. 3.-Henry Clews is of
the opinion that the crisis in Wall street
has reached its climax, and from now on
improvement may be reasonably expected,
accompanied, of course, by the usual SET
backs incident to convalescence. EX-
perts seem to agree in diagnosing the all
ment which has attacked the stock mark
ct with such severity as financial gastri-
tis-the inevitable result of an ill-advis-
ed attempt to swallow an immense guam
tity of indigestible securities. Singular
ly, the attack has been most severe upon
Z, those who took part in this sumptuous
meal; fortunately, owing to vigorous
constitutions and heroic applications of
the hydropathic or liquidation treatment,
the disease did not become sufficiently
acute to develop symptoms of hysteria
or panic. The unhappy patients have
suffered severely by their underwriting
commitments; nevertheless valuable
lesson has been learned, and the expert
ence should have it's value to observers
and all interested,
The most satisfactory feature of the
last few days has been the easier rates
for time money. This demonstrates re-
viving confidence on the part of bankers
who are obliged to anticipate the future.
While the high figures at which loans
continue to stand in the weekly bank
| statement is matter of concern to
some observers who have been anticipat-
ing sharp reaction as the result of
recent liquidation, bankers do not show
any anxiety in this respect, probably oe-
cause they now have their resources un-
usually well in hand and proftably en-
ployed. There are three factors account
ing for this high level of loans, which
are sometimes overlooked, viz: the large
increase of banking capital in New
York, the large amount of railroad paper
outstanding and the increased extent TO
which big industrial establishments I'M
der the trust system now borrow i'll New
York instead of near the mills as former
lily. \ good bank statement is antici-
pated this week, partly on account of
payment of the Pennsylvania loans and
partly because treasury disbursements
have been exceeding receipts for some
! time past. Stock market liquidation
must also have strengthened the banks
much more than has yet appeared in the
weekly statements. Besides these fac
tors gold is now on the way here from
Australia, and in the present condition
of the European money markets any
emergency here could quickly start gold
| imports to this center. The local money
market, therefore, is in much improved
condition. Very soon crop demands will
lassert themselves; but the banks are
we'll prepared for these, and the present
outlook is that no special inconvenience
will be caused thereby. 1t is quite GER
| tain that legitimate trade will not suf-
fer for want of proper financial accom-
modation this summer or fall; and spec
ulative demands are not likely to be ex-
cessive for some time to come.
Now that liquidation has about run
its course, it is proper to consider fu,
ture influences, such as crops, gener i
business, railroad earnings, currency
Legislation and political campaigns. AS
to crops, the outlook is still for more
than average yields of wheat, corn, cot
ton, oats, hay and live stock. There will
be plenty of wheat at good prices to the
| farmer. Corn promises a 2,OO0,O0O,OOO
crop. Cotton is likely to yield nor
NAL crop and is sure of big prices to the
grower, which means unusual prosperi-
ty in the south for the next twelve
months. This is one of the most strik
ing probabilities of today. Live stock
raisers are also anticipating profitable
season. General business has not thus
far been distributed by the Wall street
crash. Possibly new enterprises will re-
ceive some shock in consequence; but all
advices from the interior agree in report
| ing satisfactory conditions and fair pros
poets for another good season with dis
| tributers. Railroad earnings continue
large, and in the great industries pro-
duction has not yet Outrun consumption.
Some expedient remedial action on the
currency question is expected from the
next congress, but no important legisla-
ton on either currency or tariff need be
anticipated before presidential cleo
ton. Discussion may develop, but real
and important action need not be expect
ed. The stock market is not likely to be
disturbed by political agitation for some
time to come.
Hereafter the tendency of prices ought
to be conservatively upwards for really
good stock More reactions are to be
expected because of further liquidation
on the part of concerns that were re-
Gently tided over. But sales OF this
character cannot be very large after such
a thorough house-cleaning as we have
Just passed through. Stocks have been
drifting into stronger hands, and no
doubt some of the big railroad deals
| which have been pending for year or
two will be facilitated by the recent
shifting of ownership and removal OF
antagonistic influences. How much the
late depression has been aggravated by
operations of this sort by some OF the
biggest leaders will never be disclosed,
but the skill and force with which the
downward movement was conducted-al-
ways effectually checked when panic
Threatened strongly suggests that pow
erful interests have shrewdly taken adj
vantage of recent conditions to further
important plans. Good railroad securl-
ties purchased with discrimination on the
Ideclines will therefore eventually prove
profitable investments.