The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-06-10
The Nervous Month of June.

The Nervous Month of June.
Of all periods of the year, the month
Of June is usually most important in
determining the country s harvests. AS
the harvests go, so goes general bust
ness, and this the money centers reflect.
Hence, the attention of men who would
determine the future of the securities
markets, which usually move in advance
of actual conditions, has been drawn
away in part from the great disturbing
influences in the east and in the foreign
field, to the winter wheat states of the
southwest, where, in advance localities
harvest has already begun, and to the
spring wheat states of the northwest,
where the plant is beginning to develop.
The crop promise is very high, so high,
indeed, that, to be in line with it, quo
tations for stocks Of the grain-carrying
railroads, and other stocks in sympathy,
ought to show hardening tendency. In
vestors hesitate, however, and specula-
tors hold off, for it is not forgotten that
last year the crop was cut down mate
rally, at a date later than this, and
that in years past a magnificent pros
pect on June l has turned out much be-
low promise in the final returns.
The war is now really a secondary
factor. Even before it is certain that
there will be immediate peace, and
while yet the matter of indemnity is
unsettled, the financial %centers are con
sidering what Japan will do with the
money. From a source in New York
that all thru the war has been reliable,
comes the ~intimation that the first thing
that government will do will be to set
aside sums to pay off her original loan,
and take up the $50,000,000 Of 6 per
cent bonds at the earliest possible date.
This, while not official, should not be
~disregarded, for New York financial
houses played no small part in handling
the Japanese issues, and. came into con.
fdential relationship with fnanciers
from Japan, and it is quite probable
that while yet Japan is unprepared tc
make official announcement of her in
GtuG1Ou WILL ItlClCuCC w o1opooo VI AO1
prospective indemnity, she might allow
her disposition to become known thru
unofficial channels. This first issue Of
Japanese bonds does not have to b
redeemed until April 5, 1911, and a. sec
ond issue, which was for $~60,000,OOO
also at 6 per cent, comes due at thu
same time. But under provision in thu
loan, Japan may anticipate paymen
any time after April, 1907, and that sh'
is only waiting to get the money tt
provide for cancellation of her obliga
lions incurred under stress of war, i
information stimulating to her credi
and a favorable factor in a general way
Business in the stock market ha
again fallen low, and the lethargy i
due largely to the Equitable fight
which appears now to be closer to set
Element. With the announcement 0
new control, however, there comes ri
NOR of a scandal greater than any. TIL
qualifications Of this high .fnancia
suuabble are almost untraceable; the
reach everywhere. The situation is S
bad that it can scarcely get worse, an
street opinion is that the Equitable al
fair has spent it's greatest force as
bad influence. -5,-E
Meanwhile the bulls in stocks are be
coming FESTIVE under restraint. Wit
t railroad earnings not only keeping W
but showing gains in a naturally quie
period, and with promise of a big bus
ness to come, they believe matters to b
shaping for a rise. Generalbusiness
so sound that it is indeed hard to Sc
how a later bull market is to be pr
, vented if the harvests come out sati
factorily. There is no scarcity {
s money, nor any likelihood Of hig
s rates for money for some time. Mar
t things, in short, favor the bulls, br
8 thru June, a critical month, the Gro
r uncertainty may hold the market
; check, especially if there is a slipup
peace negotiations, and the high fnal
e ciers Of New York continue split u
v over the Equitable matter.