Daily capital journal. (Salem, Oregon) 1903-1919, 1904-10-13
MARKETS
In GOOD
CONDITION

hthTy views, the Well-knOWn New
York banker and broker, in his regu-
lar report for the week ending October
sth, says:
Powerful manipulation and good
supply of favorable news combined to
stimulate the market into greater nc.
tivity, the only check to further rise
being the outpour of stocks from both
inside and speculative sources, which
caused more or less erratic fluctuations.
History is once more repeating itself
in the stock market, and at last the
confidence SO persistenly displayed by
insiders for months is extending to
the outside public, simply because cur.
rent developments prove that this con
tidenee had been based upon actual con
ditions of which the leaders naturally
possessed previous knowledge. The
week has been fruitful in favorable de.
velopments. A number of very salts.
factory railroad reports were forth.
coming some of which showed crafty
ing gains in gross earnings, others i'm.
portant reductions in operating ex-
penses, while others have joined OF
promised to join the ranks the divi-
dend payers. All of these disclosures
prove that the railroads, as whole,
are enjoying continued prosperity. Nor
is this all. Traffic managers appear
very confident in a continuance of this
prosperity for another season, and il
must be conceded that such views are
well supported.
"The rise in the market has now
been carried to pitch where sharp re,
actions are inevitable, and yet the sit
uation at this writing appears so well
in hand that the leaders are quite like.
ly to resume the upward movement.
One thing may he taken for granted,
and that is, with so much success be.
hing them those in control are not like.
ly to stop until the rise has been pushed
to the extreme limit. If this should
be their policy there is nothing in
sight to check it except sudden deser-
tions from the bull ranks, or else
sharp contraction Of the money market.
Neither of these contingencies are very
probable just now, for the public have
only recently come into the market,
and the surplus holdings of the largest
financial interests have not yet been
sufficiently distributed, and until they
are the market will not turn. The sit
uation in the money market is not yet
unfayorable to present bull operations
Though loans are at high-water mark,
and though the reserve was cut in half
long before the crop demands had
reached their maximum, the surplus is
still much above the average at this
season, and the margin Of safety has
not yet been exhausted. The money
market is just now largely controlled
by some financial and banking inter
ests who are engineering the current
rise, and who are quite likely to be
among the first to appreciate monetary
limitations Nevertheless, the first in
Of a turn will come either from
heavy inside selling or contraction in
the money market One of the main
sources Of buoyancy is the increasing
supplies of money. Several millions
of gold are now on the way from Aus
tralia, TO be added 10 our already pie
thoric stock Of gold, the inflationary ef
feet Of which upon values is not yet
fully appreciated. Our circulation in
creased over $3,sOOO,OOO in Septem-
Der, and is now more than $l50,000,
600 in excess Of October LIST last year.
This redundancy of money and its
effect upon interest rates is unquestion
ably one of the most powerful elements
in the present bull movement