The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-09-10
THE BULL MOVEMENT.
Pessimists are quite numerous in the

Pessimists are quite numerous in the street,
Notwithstanding the bull market. One of them
says: Judging from the short-sighted view in
which the professional trading community has
which has lasted really several months, is most
peculiar and in most cases unwarranted. Axio-
matically in the long run a market must have
good news, sound conditions, great financial and
commercial improvement, big crops or general
unclassifed prosperity to warrant extensive OF
prolonged Improvement. 1t must have the re-
tons, to warrant any long period Of DECLINE II
is argued that no unusually prosperous condi-
tfons exist on which to base the present move.
ments, and the argument has in its favor prac-
tically all the: conditions which have developed
during month tive. -
1.-The iron and steel trades have always been
regarded as the<best barometric index of general
conditions. We must, admit that for many
months the iron and steel trades have been in
chaotic condition, and the legitimate improve
ment Of the past month is comparatively slight.
It is certainly not to be compared with 10 and
is per cent improvement in Wall street markets.
Here are two factors decidedly out Of tune.
Moreover, the market advanced an entire month
in anticipation of an unusually large crop OF
| wheat. During the month it has been neces-
sary to cut down the estimate Of the wheat crop
from CSC, 900 bu to 500,O0o00O Blu. This is
cutting off quarter Of the entire crop, leaving
the total rather under than over the ten-year
average. Comparison with more remote dates
| is idle, because it is forbidden by the much
smaller population Of the grain-raising regions.
|
| ton in the higher prices. There has been in
crease Of at least 25: per cent in the price OF
! wheat This Is compensation to the entire ma
!. ton and ought to sustain the securities markets
generally at the level where they were before the
crop deterioration began. = 1t is not justifabla
excuse, however, for great imitation in securi
| ties prices. The same applies. to the cottor
crop, estimates of which thirty daye ago approx
mated 10000 600 bales. and which now are
little above 100000 900 bales The price Of cot
| ton has not improved more than nominally dur
| ing the time. The south will have remarkabl,
prosperous year, but Its fresh cash resources viii
regard the market, therefore, as an artificial
| affair, inflated without warrant, at the will O.
great fhanciers who have untold millions witt
which to carry on, campaigns or dependent upo1
legitimate conditions not understood: i AS mat
ter Of fact the prices Of securities have, no
been going up intrinsically, but only compare
tively.' ..,.tss sz+s
The government crop reports are growing
more hazy with each month and each year, ant
little actual reliance Is placed in them now
The consensus Of opinion in we'll informed circle
is that the crops win turn out to be about nor
| NAL, and that 1904 has. on, the whole. been. al
excellent crop year. Vice President mccullough
of the Chicago & North Western Is in town ant
says that the crops in the northwest will be bet
ter than has been generally reported. He feel
we'll satisfied with things. in that section
Railroad earnings for the last week in Angus
and for the month make, as rule, most favor
last year. and utterly refute assertions tina
business in this country is demoralized. Els
pecially heavy earnings are reported BY tn
II roads in the south and southwest. According t
reports. received from sthe officers Of wester
) | railroads, the traffic situation in the wester
states is most promising. ndications pointing
a volume Of freight that will tax the roads be
} yond their rolling stock a ailitles s.
= Present Indications do not suggest a dispes
$ ton on the part Of the bull element to retir
: from the market. IS. s.. Schrof.