The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-28
The Business World.


currency of great volume from east to
west, and later counter movement.
Beginning as rule in August the
efflux reaches its height early In Octo-
Der. tho this varies slightly from year
to year, and the third week in Noyem-
Der Is usually marked by a. dropping
off, indicating the end of the drain.
Then follows a period OF waiting. ex-
tending, usually over the holidays,
after which the money begins going
back. &
lit is now the end of November. The
heavy drain upon the eastern money
supply has ceased. While 1t lasted,
western money. shipments were the
heaviest on record. From August to
November, 1901 about $20,000,000
came out of New York. In the cor
responding period in 1902 s26,000,000
was shipped, while this year the total
is almost $44,00o.00
The country has taken much more
currency. yet actual needs this season
were not more heavy than usual, for
while it is true that high cotton made
an important difference in the south,
crop requirements in the west and
northwest were not above normal.
Besides this, the movement Of grain to
market was later.
Considerable money drawn from
New York did not come far west, some
came we'll out for investment, and
some round sums We're sent on emer-
gency call, to kill incipient panic, at
a time when depositors,i needlessly
alarmed, We're making runs upon the
| largest savings institutions in ST.
| Louis. Fear of similar occurrences
caused bankers in other cities to look
sharply to cash resources and to
Of the westward, movement this year
| has been the comparatively light de-
mand in the northwest. The failure of
northwestern banks to call for any
thing like the usual amount created
surprise in the east and is accounted
for by the late movement of the wheat
crop and the unusually strong finan-
cial condition of the northwest.
! To-day the west has more money
than is actually needed and the east
would like to know how, soon she may
expect to get some Of it back. Easy
money in New York is a great desid-
| eratum, for easy. money dispels doubt
and fear, and encourages new enter
prise and business extension. From
every ordinary business standpoint
easy. money, is a good thing, While for
the bulls in Wall street it is a neces-
sity. ..~,' t.e-@s... 's~- %'r- '4l'
1t is not that money has been tight,
for on the contrary the moderate rates
maintained, and the ease. with Which
the money demand was met, were fea-
lures of the year. $780, .. =
1 But in the stock market the thoughts
of men are now turning towards the
bull movement that is to come, the
bull market yet ,afar, so far in truth
that no one can discern any distinct
sign Of it, while yet it is beginning to
be felt that it. must come. Easy
i money, continued easy money is es-
sentia1. az. - ~. = = - =
i Stocks have been hammered. merci.
i lessly. Not alone have the bad ones
been successfully singled. out for at.
|; tack, but the bears have not hesitated
to operate against the gilt edged "se.
t curities Of the supposedly invulnerable
), class. This has continued so long thai
from very excess of bearishness a TURF
/ should be expected. -.
Roughly speaking, three division:
might be made of the Wall street per,
sonnet. There are the many still pes
sinistic in the extreme, the more
hopeful ones, who believe the wors
is over; but lock. for no improvement
, in general conditions and no sustained
| upward movement in stocks until afte1
{ the next presidential election, and thu
min GRITTY, hoping. for a, substantial rise
; before very long. = - +; r.ss-1t
] That money will move to New Y OIL
| after a short time is not to be doubted
But the proposition that because tn,
shipments were: unusually large the
$ return will be correspendingly heav,
may not hold good. The west is NOR,
Y conservative this year. For severa
$ years the country did business on a,
3 extensive basis. To-day the tendenc,
/. in the west. as elsewhere, is to draw
! in a little and put safety above ever,
: other consideration. The western
banks are known to have strengthene.
J themselves materially as to the matte
J. of cash resources immediately avail
t able and are not likely to recede from
: this position very hastily. Surplu
S western money will doubtless seek EN-
/ pioyment east, and as there may b
S much of it and: as there is .abou
f s56.000.000 more money now in cir
j c1llation than last year, Of which ne1
: money the west has got, a relativel
!. larger share than the east New Yor,
!. would like to see the eastward none
y fowibegin early and. run heavy. Bi
deposits and large balances 1nea
. easy rates, easy call money, and cor
: ditions favorable to a revival>of spec
= ulation In stocks. But it is better tha
more money should remain in the ives
and that the policy Of CONSERVATIVES
~ adopted by western financial institu
& lions be continued, even if the bu
& campaign In stocks n1ustAbe deferred
d Of all favorable signs. of the season
d and there were many such this weel
1t there was nothing so satisfying an
- reassuring. as thesn1anneri in which til
e textile employees of New England az
n copied a reduction in wages. So ia
II employees to,the number of 3 1000 hay