The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-09-16
cial to The Journal.

Special to The Journal:
New York, Sept. LETT is good opinion that
the recent depression in the stock market was en-
tirely artificial; the business conditions Of the
world did not justify it. The selling which,
caused the slump was led by o powerful coterie
of "bucket-shop' operators who desired profits
and obtained them in their usual fashion. The
whole thing was professional manipulation Of a
very common order. but 1t was highly successful
Expressions OF opinion among the uptown crowd
OF SPECTATORS are rather mixed and 1t Is evident
that there is by no means unanimity Of senti-
ment in regard to the immediate future. Close
observers do not regard spasmodic recoveries as
an indication that the upward movement is about
to be resumed for prolonged period they
point out that the market seems to lack enthusi-
asn and are inclined to wait until more substan-
stial evidence is presented as to the position
which leading banking interests are about to
take.
Incidentally, the Boston bear clique gave vent
to more predictions Of disquieting nature,
which sentfmentally were effective in discoura-
gtng outside participation. Atho during the
latter part of the week more evidence Of buying
by the large financial interests was percepttble,
resistance to bear operations still showed lack of
fvigor. The average broker, while still optimistic
clients to load up with stocks, feeling that in
present mixed conditions lower level of prices
would not be surprising.
Some surprise was felt that the big financial
interests should have failed to support the mar.
ket against the operations Of the contingent de-
pressing prices, particularly since the bears have
made use OF sensational arguments directed
against the very foundation of financial condi-
lions More mature consideration, however,
shows the wisdom of the course pursued. Pool
operations had reached point where they took
on q dangerous character suggestive OF repe-
titfon of the 1902 speculation, which led up to
the 1908 Decline
The money situation, despite predictions some
months ago of ease during the crop moving pc
Rod. was bound to have its influence on the
stock market, September In fact being usually Q
month Of irregularity If not depression. Owing
to our inelastic monetary system the periodic
demands for harvesting Of commodities cause 9
great strain upon eastern banking resources, ne
cessitating a reduction Of Wall street loans In
order to meet the calls of western and southern
correspondents. The present Is also pertot
when the mercantile community requires more
accommodation which it usually obtains at the
expense Of the stock market.
The money situation complicated this veal
by the very low level Of the bank reserves ant
large increase in the loan, account. Even thu
level decrease in the surplus funds OF the New
York banks as compared with 1904 amounting t.
almost s34,ooo,0oo and gain III in y the loan &C
| cause for conserva tism. To prevent the surpu:
from being entirely wiped out, the banks havt
during the past few weeks had recourse TO tht
usual expedient Of calling loans, natural result
being the acceleration OF the downward move
ment In the stock market.
In view Of the fact that the surplus is nov
less than S., 900 O00 it is possible that further
| loans may be taken over by foreign lenders, thu
decline in foreign exchange suggesting this pos
| sibility, large amount Of securities have beer
part as collateral for foreign loans, this bein.
| a counterpart Of the movement In 1902.
There is much b,lliish talk on Pennsy1vani.
| raiircad and 1t is said that soon tn,
! finapcial atmosphere becomes clear of prescn
| /, ncertainties 1t is scheduled to 60 MATERIAL.
higher. Members OF the uptown crOwi have
1 report that the ong-deferred dividend on South
| ern Pacific common will be declared this fall
/ So far, however, nothing of an official nature !
i obtainable in confirmation Of this report.
Representative Of prominent Ptttsbdrg interests
| who arrived In town this week, says that tn
general public does not yet fully appreciate tn
/ enormous business which the United States SITES
4 corporation is doing. Officials Of the compan,
Ite says, are thoroly convinced taat the presen
4 bonn in the iron and steel trade is bound t
continue for long time. The impression pre-
4 walls that Union Pacific will be one VI the lead
Iers Of speculation In the near future on accouH
of certain expected announcements with regar
Il to that property. 3
i The bears made an effort to tlcpress prices b
i circulating report to the effect that lavs
i arbitrage house was in trouble. The only -four
1 dation for the report was that q small firm
i London was slightly embarrassed on account 1
1 the fortnightly settlement. Arbitrage house
s said that the matter was OF little importanc,
s. and that the London market has never been /.
q healthier condition than 1t is at present.
John w Gates is out with another bulls
q interview but the street suspects him OF d
sire to unload his heavy holdings at = mic
s profit. IS. 8. Schroff,