The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-12

ClllCdSO, JuH0 LIZ NdlCeT w SllIlldIl AL
New York special to the Record Herald
says: 49,, $50
This is the most wonderful country In
the world" said well known banker to
me. 1t is without doubt the only country
that could suffer a loss of more than
thousand millions of dollars in four or five
months without financial crash, a dis
aster, of truly magnificent proportions.
Yesterdays upward shoot Of stocks mark,
as believe, the end of one Of the most
remarkable periods of liquidation ana OF
fall in values ever seen In the Worid.
had one of my clerks prepare table OF the
drop in leading stocks, beginning with the
high water mark of this year, which was
in January for most stocks and In FEB
ruary for many others, compared with the
bottom at day before yesterdays closing.
For lack Of time he did not compute the
loss on all the stocks listed on the, New
York stock exchange, calculating only
those of greatest Importance and estlmaI-
ing the remainder thru a careful eXamlna-
ton Of the entire list. In making his COM
putations he omitted fractions, so that the
figures given cannot be regarded as abso-
lutely accurate.
1.-THE result is startling and yet reassur-
ing It shows total depreciation OF
values Of stocks, listed and unlisted, OF
considerably more than billion dollars
a sum about equal to the outstanding ma
tional debt less cash in the treasury. This
great loss of values has occurred without
disturbing the general prosperity OF the
country. Commerce., manufacture and
distribution have not been appreciably al
fected. The banks are in fair condition.
There is no occasion for alarm on any
score and probably would not have been
had the decline continued longer and the
bottom been reached much further down.
:'There have been no failure of conse-
quence even in Wall street While there
has been strain, no breakage has been op-
served. All Of which, to my mind, Is
abundant proof of the solidity and actual
ity of the prosperity, and solvency Of the
American people. Why, men who are car
rying stocks have not been able to feel
the effect of the great decline and disap-
pearance of values. Everything has gone
| on as before.
1.-THE loss has not, of course, been con-
fined to New York, but has been distr1-
buted turnout the country. And the coun-
| try has been easily able to bear it. lnd1-
viduals have suffered, but the country as
| a whole is as sound as rock. If such an
| enormous value had been lost in so short
| a time in Great Britain, France, Germany
or any other nation there is no question
| that it would have meant panic. Lord
| Rothschilds interview shows what emf
| nent f1nanciers abroad think of America
| outlook: From the bankers point of view
| the liquidation has been a good thing. II
squeezed some of the artificial and inflated
values. In the reaction the pendulum
| swung too far and many sterling stocks
| were carried ridiculously low. Men are like
sheep-they all run together. Itswas in
evitable that the time should come when
| stocks would get so low that men Of large
| means would begin to buy for investment
| That is what happened. Shrewd, cautious
| men have been picking up bargains.
ITO my mind the most wonderful thing
about It is tkeS ease and serenity with
which the country has endured the big
slump. A dozen years ago the world mar
veled that the United States government
was rich enough to spend a thousand mil
lion dollars in two years. But there we
go and drop more than a thousand million
in four or five months almost without
a ripple on the national surface. This is q
billion dollar country, sure enough
According to the table there was Loss
in railroad stocks of s653, 900, industrials
and others 100000, making a total o1
| 81 ,019, 100000 !