The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-13
And the Agricultural Experts Are Dis
turbed by News Of Frost in Places
Where Corn Is Not Raised.
PERPLEXING MONEY OUTLOOK
INVESTORS HAMPERED By THE
SCHEMES OF J. p. MORGAN a. co.
Canadian Pacific Railway an Object
of Close Scrutiny-MisfOrtun of
Philadelphia Men.

Special to the Indianapolis Journal
NEW YORK, Sept. 12.-Speculation as to
the future of the money market and specu-
lation on the outcome of the corn and cot
ton crops form the burden of Wall-street
discussion these days. There is less I'M
certainty about cotton than there is about
corn, and much better show for a full
crop. The weather maps are scrutinized
morning, noon and night, and great num-
bers Of experts in that field have developed
during the last few days. More expert in
formation as to frosts, SHOWS and rains can
be had around the brokerage offices and
on the curb than in the Signal Service
Department Of the United States govern
ment. Some of the wilder-eyed gentlemen
who think 1t part of their business to de-
stroy the corn crop every year have been
in great distress several times lately over
reports of SHOWS in Colorado heavy frosts
In Wyoming and reduced temperature in
the Adirondacks. Their alarm is not al
layed by the fact that there is snow and
frost nine months of the year I'm the higher
attitudes of the Rocky mountains and cold
weather for a similar period in the Adj
rondacks, or from the additional fact that
no corn is raised in those sections anyway.
The mere fact that there is snow and frost
somewhere early in the month of Septem-
Der is enough to warrant them I'm annihi-
lating all the corn north Of Arkansas
and Oklahoma. That there is good ground
for grave apprehensions of frost In the
northern areas of the great corn belt is
admitted, and anxious eyes are turned in
that direction by conservatives as we'll as
by alarmists AS for cotton, it has been
utterly impossible thus far to excite fears
of serious damage, and bumper crop is
now confidently anticipated.
The money situation continues to be per-
picking. The unexpected raise in the Bank
of England's discount rate calls attention
unpleasantly to the possibility of gold ex-
ports at a season of the year when the
yellow metal should be flowing this way.
This contingency is one to be dreaded, as
all available funds will be needed at home
for crop-moving, commercial and industrial
purposes. The attitude of the secretary of
the treasury towards Wall street is con-
strued to be entirely friendly, although
erratic. Mr. Shaw is understood to take
exceptions to the theory that he is favor
ing Wall street, and insists that his regard
Is in a broader way for the entire business
interests of the country, the New York
banking situation being only incident
and minor one. The drain upon the New
York banks for crop-moving money has not
yet commenced There is hope that it may
be smaller this year than usual, but there
is apparently little to base this hope upon
except the knowledge that Western banks
have more local money than in former
years. But to offset this seeming advantage
they are known to have loaned a considera-
bic part Of their home surplus on Eastern
paper, fact mentioned in last weeks let
ter. The calling of these loans would have
m no acfo
situation as though balances were drawn
upon directly. L may be excused for re-
peating this story; its Importance is my
justification. 1t is little discussed, except
in the inner banking circles, and seems to
have been one of the features almost over
sS f b tune t money h have yield
which discourages those who would like
TO see a bull movement in stocks and ex-
banks will still turn a frowning front OH
| speculation, saying that they will not have
FUNDS TO spare to finance operations in that
| line.
| great many people find themselves
embarrassed by the tying up of their funds
| in the underwriting and syndicate schemes
| of j.. p. Morgan & Co. 1t is estimated
that not less than s2O0,OO0OOO is thus held
in suspense and in sense paralyzed. Not
few go so far as to say that the inactivi-
to ]. Pierpont Morgan than to any other
| single cause. Steel preferred to the face
value of sl0O,OOOOOO was turned in to Nor
gan's office more than a year ago by SUBJ
scribers to the bond conversion scheme.
When stockholders surrendered their
| shares they got back mere receipt from
| j. Z. Morgan & Co, and this is all they
have to-day to show for their securities.
| The syndicate was to have expired next
month, but the time limit is understood to
have been arbitrarily moved forward six
months. This tie-up operates as a hard
| of a gentleman who was worth 100000 in
quick assets and who turned i'm 100000 in
| preferred Steel stock. He subsequently
| lost 100000 in speculation, spent 100000
and put the remaining 500. 900 out in such q
| way that ne could not easily get it back
His entire fortune now consists of little
strip of paper from j. p. Morgan & Co
acknowledging the receipt of 10000 shares
of preferred stock in the United States
| Steel Corporation. This receipt is non
negotiable. He could not raise dollar on
| 1t in any bank in New York. There are
many others who are similarly situated
| although this is, perhaps, an extreme case
1t is understood that between $6O,0o0.OOO
| and S15,OOOOOO is tied up in the International
| Mercantile Marine Company, and large
| sums in Northern Securities and other
deals Of lesser I'm, mag nit o making total
| Co. are said TO be extremely easy In cash.
but not all of the subscribers to the Nor
| gan underwriting schemes can that
| they are similarly blessed. The winding
| up of these various enterprises and the
restoration of the securities to their own
| ers would release immense amount of
| collateral and might Intricate the ma
| chinery of speculation.
The annual report of the Canadian
| Pacific Railway called ont considerable
| criticism, and is being subjected to rather
! keen inspection. During the year the cap
ital stock of the company has been in
creased s19,5O0,000 and land was sold to the
aggregate value of nearly SlO.O0OOO0. 1t
does not appear that the road has been
| spending any very large amounts in extern
| sions or purchases of new railroad proper
ties, although il has bought a steamship
line at a cost OF $1,000. coo in round figures
To reimburse the treasury. for money spent
| for steamboats,, it is now proposed TO issue
| another batch of stock, although at the
| time OF the previous issue the purpose was
! understood to have been to buy the boats
| with the proceeds.
The collateral fact is being freely men
| toned that tremendous land speculation
Is in progress in Manitoba and the country
west thereof along the line OF the Canadian
/ Pacific. Extraordinary efforts are being
made TO attract immigration into that area
and incidentally I'm connection with this
/ movement there has been unpa raleled
speculation in land titles. This situation