The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-05-14
The Business Situation.

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The Business Situation. i.
Events of more than ordinary I'M
portance in a monetary way have been
frequent Of late. Within a few days
the final details of the Russian and
Japanese loans were perfected,
A new record gold cargo went out
of New York, and Thursday was a
record day in this respect, no less
than 81, 100000 in gold being shipped
in all. .~- s.e.s-. ., ~ .,..
To start the week the secretary Of
the treasury drew the great warrant
for $40,000.000 in favor Of the Amer
lean banking house recently appointed
fiscal agent for the government in
the matter of the Panama canal. This
warrant made the total government
expenditure Of Monday s41,690,000,
against the days public revenues of
$2,616,7S5, an excess expenditure of
$39,073,215. The treasury deficit
since May 1 is now $41, 826,045, and
$175,727,140, which looks low COM
pared with the much larger average
balances carried for several years.
To yesterday the gold exports
since April when they began, had
reached almost $32,000,000, and ap-
near ended. Japan has had to pay In
gold for what she bought here, and
for other reasons Japanese gold has
been moving to America, Japanese
yens equal to some s30,000,000 having
come to date. Now that Japan has 6
in Europe, she is not likely to SEND
more gold this way, at least not unit
her present credit balance is exhaust
ed. From now on there will be NJ
offset to the drain upon American
gold reserves, and it is expected tina
the present movement will run to fig
ures extraordinarily large before 1
ceases. - ,~. A,1-..
The financial outlook is changing
"A few weeks ago there was a super
abundance Of money, and there 1
yet a too plentiful supply to make tn
banking conditions the best, but It 1
likely the last has been heard Of thi
and that idle money will no longe
accumulate in eastern reserve center
at SO great a rate. The most impo
tant sign in this connection is the in
creasing runor Of bond issues by tn
leading eastern railroads. During tn
past year these roads have spent mil
lions upon maintenance and better
i7nent and have planned to spend mil
lions more. But to raise the none
many instances, for the reason the
conditions were unfayorable for larg
loans and large bond issues woul
have had to be foated at materis
discounts. That these roads no,
contemplate taking up their notes
evidence Of a sufficient revival {
confidence on the part of the inves
+ ing public to make it look as If til
public would take the bonds.
News bearing upon commercial q;
fairs has been largely unfavorabl
The government estimate Of loss
almost 100000 acres Of the origin
winter wheat area put damper G
hopefulness as to prospects for Thu
important crop. Unseasonably CO.
and wet weather has ruled over po
tions Of the northwest, with rains
some localities where further precip
fatinr O. this e;s ~
The season remains about as bac]
ward as at the opening, and goo
warm weather must come soon If
d. to catch up.
The steel trade shows condition
slightly less favorable, rather the
the Improvement hoped for.
Railroads Of the west are earni1
gross about S per cent less than
year ago, and complaint is heard
light tonnage, while the late ope
dng of navigation and bitter lab
contest on the lakes makes the imm
diate outlook not very favorable f
the carrying trade as a whole. Ra
road officials now admit that spril
and early summer tonnage equal
that of last year Is not to be hop
for under any circumstances, nc
withstanding there are elements u
der the surface working for bett
things; as, for example, the shrin
age in general western merchandi
stocks, which are now lower than {
q long time and must be replenish
sooner or later.
Much hope had existed that t
roads might tide over the period
crop-moving time with only slight d
oreases in earnings, as the st. Lo,
fair will afford opportunity to i
crease the revenues from passeng
carriage very largely. This W
shattered when the Minneapolis-Cl
cago lines slashed rates and the S
lcut in retaliation, the whole weste
iUassenger rate situation being -cle