The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-10-15
GOOD FINANCIAL ADVICE

Easily the feature of the week, in
matters strictly financial, was the ad-
dress of Mr.. Vanderlip before the
American Bankers association. His
words went everywhere, and were ev-
esywhere the subject of comment. Be-
cause Of his tone Of conservatism, more
pronounced even than expected, slight
chill fell upon the stock market, and
prices were inclined to sag. In vain the
Wall street bulls brought out the fact
that about two years ago Mr.. Wander
lip made speech that drew him into
great prominence, and was noted for its
conservatism and warning to go slow
! in speculation, and that since then some
| stocks have advanced as much as thirty
to forty points on legitimate grounds
This argument awaited little. The mar
ket, while suffering no appreciably bad
! effect, had it's little slump nevertheless,
! putting temporary check upon many
plans for price advancement and Wor-
rying the weaker holders of securities
and the spectators, but disturbing the
! big men not at all.
1t would seem strange that the words
Of one man, still very young, and until
recent years almost unknown, should
carry so much weight, and indeed 1t
would be crediting too much to Mr..
Vanderlip to suppose that the country
halts upon what he says. His excep'
tional ability is evidenced by his re-
markable rise from minor editorial
position on western newspaper, thru
the treasury department., to fame as
flnancier, That the Rockefeller bank
ing interests reached out for him and
got him, after his brilliant government
al service, is even more practical proof.
Today he stands representative of the
Younger and more active element of the
group of money magnates known as the
Rockefeller crowd.' AS an officer Of
the great New York bank, in which
these financial interests are centralized,
he is supposed to reflect their views.
He may not always reflect them. 1t is,
however, as the representative of this
capitalistic group that his words have
the power to make Wall street stop
and look about.
There was world of truth in the adj
dress. Complementary it grasped and
drew into view the elements great and
small entering into our prosperity. Opt
mistic in tone, it's moderate tone was
effective. The old tendency was again
pointed out to forget in times of pros
perity some Of the fundamentals OF
sound business, and to indulge too free
" in speculation. This, we all know,
is one Of our great sources of trouble.
Our country works ahead by alternate
periods Of high and low pressure, OF
moderate business, sometimes depres-
aion, and then enormous business and
expansion. If, when we are all we'll
TODD and prosperous, we go carefully,
we are prepared for the falling trend
sure to come with time. IF we plunge
into speculative excuses, we but hasten
the day of reaction. Wall street is the
great sinner in this respect, and II the
words went home to the street, good
purpose was served.
The government came along this week
with percentage figures that make it
clear that we have raised greater corn
- crop than ever known. Latest estimates
are for about 2,650,CC0,000 bushels
The largest crop ever raised was in
1902, which, according to government
figures, ran to 2,523, e4s,3l2 bushels
Last year the total was 2,467 ,480, 934
Great crops have been the rule this year
nature pouring out her bounty. With
go the country already strained to handle
its immense business, there will soon
be corn moving to market in quantity
to add immensely to the burden. TIC
turn the enormous products Of the farms
into money, without exhausting ou1
financial resources, and breaking dowr
our railroads, is the problem of the day
Much interest is noted in the prob
able recommendations Of the president
covering rate regulation, in his message
to congress. This is rather long look
ahead, but it is working to the front as
q financial factor. It is certain that thu
rate question will figure in the message
-. in important manner, and that recon-
merdations will be made, naturally fol
lows. Despite some minor pessimisti(
comment of the day along this line
there is nothing to fear, for it is wholly
improbable that the president will rec
ommend anything drastic or calculated
to unsettle or disturb the situation, no1
- is the rate question now so potent
force, since SO much has been heard or
both sides of it,