The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-08-27
MONEY WILL SOON
MOVE WESTW ARD
BANKS GETTING READY FOR
CROP REQUIREMENTS.
Steel Pool Dissolution and the Wheat
Crop Scare Bad Factors, but Stocks
Won't DoWn--some Good Buying
of Western Races for Investment
Account--Summary Of the Week.
Special to The Journal.

New York, Aug. 27.-The time is
close at hand when the shipment Of
funds from this center to the west for
crop moving purposes will begin. NO
actual demand has been made yet, but
the western banking institutions are
curtailing the amount Of their deposits
In local banks, or rather are using
their funds at this center to meet obli-
cations which they would ordinarily
meet direct. The local subtreasury
has received drafts on it's local cor
respondents from certain western
banks indicating that they are hus-
banding their funds for the present.
Further the course of Chicago ex-
change on New York is an indication
OF the near approach Of the period
when this center will be called on to
finance the moving of western and
southwestern crops. The immense
surplus reserve here is the best guar
anteee that no matter what the de-
nand may be it will be easily met.
Steel Troubles.
Unn1istakable signs of the APP
preaching dissolution of the Steel Rail
association are being noted in both
steel and financial circles. The
railroads themselves, it is asserted are
In position to force prices down from
the $2S level at which they have been
ing their orders for next years re
quirements until they can obtain the
tonnage which they desire at large
concessions.
Tho the steel corporation is still
confident that it can hold the field
against any attempted shading by in
dependents for some time to come
several entering wedges have already
been driven into it's stronghold by ten.
tative offers which have been recently
made by railroad presidents for large
lots Of rails for delivery in 1906 al
prices ranging from SIS to $3.50 less
than the official figures. With the
completion of it's great plant near Buff
falo, the Lackawanna Steel company
rails yearly and this output will come
into the market practically in compe.
tition with the Steel corporations.
A prominent banker estimates that
Wall street banking institutions dur.
ing the last ten months have invested
more than s2oo,ooo,ooO in stocks anc
bonds. One bank alone is said tc
have invested $4,000, 900 in Unior
Pacific and about $5,OOO,OOO in South.
ern Pacific. Another bank is said tt
have invested something like SIS ,OOO,.
600 in Reading.
Stocks Won't Down.
A significant feature of the stock
market this week was the quiet pick.
ing-up of stock Of the granger roads
The comparatively low level at which
the stocks have been selling for Ions
time opens a good field for investment
and the stocks are being bought FOL
Ithatspurpose and put away in safes
and not for speculative purposes.
An experienced speculator says: "a
fact which has been plainly demon
strated is that there is absolutely M
genuine liquidation in the market. L
the market won't go down in the face
of such news as we have had durins
the last week it is plain that it will
take more than short selling to cause
any reaction to amount to anything
We have had crop scares accompanied
by an advance in wheat to the highes
level touched since the Letter whea
! DEAL. and we have had some radica
cuts in iron and steel products. Thes,
disturbing developments were takel
| advantage Of by traders to hamme
| the market and put on heavy lines o
short stock. What has been the re
| suit? The market hesitated for a da,
or two, some stocks reacted slightly
and then prices started advancing
turnout the list. The heavy shor
selling caused the market to hesitate
but it forced out no genuine liuuida
ton. AS soon as the shorts started t
cover prices started to advance. Ii
my opinion, the action of the marke
plainly shows that stocks are nov
/ lodged in strong hands and that muc]
higher prices will be seen before tn
| close of the year.