The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1904-01-01
Old Year Closes in Sounder Condi.
ton Than 1t Opened.
Values Are Now Upon a Very Much
More Stable Basis.
Money Market Is No Longer Subject
of Great Anxiety.
Iron and Steel Make a Better Show
ing Brighter Tone.
New York, Dec. 2s.-Henry Clews

New York, Dec. 2S-Henry Clews
says:
mo special activity can be expected
on the stock exchange until after the
holidays or until the plans and changes
incidental to the new year go into effect.
The old year, however, closes in better
and sounder condition than it opened,
values being upon much more stable
basis than year ago, while the enor
nous losses during the year, unfortunate
as they have been to many, have had the
very desirable effect of stopping reck-
less promotions and speculation. Prop
ositions that would have been eagerly
taken up in bank parlors twelve months
ago could not today secure even re-
spectful hearing, and there is little pros
pect, if any, of renewal of the daring
operations which eliminated in the rich
mans panic in 1903. We are now un-
dergoing the process of recovery from
sharp attack of syndicatis, one of the
modern maladies. Improvement is not
likely to continue without interruption;
but drastic remedies have been applied,
and as the patients constitutional vigor
has not been impaired the return to nor
NAL health ought not to be far distant.
"The money market is no longer sub
ject of anxiety, and the much feared
stringency did not appear during the
crop-moving season. Like nearly all
forseen disturbances it was averted by
anticipation. Funds are now returning
more freely from the interior; so that,
barring any furry incidental to dividend
and other disbursements January LIST,
bank averages ought to rise for the next
two or three months. Gold imports have
also been on fairly liberal scale, and
international trade conditions indicate
that this movement has not ended, al
though easier money rates here would
quickly stop the influx. Our bank loans
continue at a high figure, this being one
of the least satisfactory features of the
uneasiness over the loan situation, being
amply protected by good collateral. No
doubt the loan account is considerably
expanded by syndicate borrowings, sever
al of the stronger of these organizations
having been continued beyond their or
iginal time for the purpose of iquidating
at more favorable opportunities. Weak
syndicates, however, have been effectual
ly closed out, and there is no doubt but
that borrowings of this character have
been very largely diminished and that
the money market situation is much
stronger than for one or two years past;
the contraction of loans being chiefly in
the foreign account and therefore not
appearing in the bank statements. Secre
tary Shaw's indisposition to continue
bond redemptions, owing to the small
offerings under circular of September %,
is practical demonstration that there is
now no anxiety concerning the money
market in either official or banking cir
cles.
Zone of the most satisfactory features
of the week is the more settled condi-
lions in the iron and steel trade. Since
the decision of the billet pool to main
tain prices a distinctly better tone has
developed, and now that the prospect of
further reduction is removed orders
which have been held back are likely to
be gradually forthcoming. The full bene
fit of this act will probably not appear
until the new year has fairly started.
Should money market conditions favor
and labor troubles be avoided, we may
see a partial revival of the iron trade;
upon more reasonable and stable basis
of profit. There is plenty of work in the
iron trade to be done at a price; though
such rush of orders without regard to
cost as was experienced last year will
not be seen again for many day. Many
of our recent difficulties can be traced to
the steel boom, return of which would
not be prosperity but calamity in the
end. There is enough business in sight
to keep the mills employed at present
prices for months to come.
"The speculative situation is certainly
brighter, and very fair rise has been es-
tablished, but the short interest consider
ably diminished, so that while the out
look is promising buyers will soon begin
to require fresh stimulus in the form of
new favorable developments. Stocks are
now concentrated in strong hands and
evidently held for higher figures, stand
ard railroad shares being a purchase on
all recessions of Importance. Rumors of
war between Russia and Japan attract
attention, but the effect upon this mar
ket has hitherto been slight. Neither of
these powers is likely to borrow here for
the reason that they can do better in
Europe. The probabilities of an out |
break are yet too uncertain to cause seri- !
Gus uneasiness; still the contingency |
should not be overlooked"
&c , Sick,