The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-04

Price Comparisons Offer Food for Refec-
tion-Easy Money Likely to Remain
for Some Time Yet-W estern Specu-
lators Said to Be in Both Stocks and
Grain-A New Bond Sale Record
Likely to Be Made in 1905.

Grain-A New Bond Sale Record
Likely to Be Made in 1905.
Special to The Journal.
New York, March 4.-speculation in Wall
street during the last week has been character
lied by some of the finest manipulation ever
The ''big fellows have forced prices up
! 40 or 30 points wind, there being no justitca
ton for the advance in the business conditions
Of the country. Wall street has been able to in
hate values tremendously on mere rumors of rail
road deals, and with the certainty OF big drop
staring it in the face. AS in previous affairs of
this kind, the boosters will sell out at the top
unloaded and indigestible stocks will be a bur-
den to their holders.
Stock exchange houses have recently been eau
tioning their customers to go slow in new COM
mitments and to keep themselves amply protect
ed either by large margins or stop-loss orders
The market is as yet no such radical bull affair
las, for instance in 1902, when all conservatism
was thrown to the Winds Stop-loss orders as
a precautionary measure seem to be the favor1te
method of trading recent transactions readily
| disclosing this fact.
The continued London buying in the New York
market may be inspired from this side, and con-
sequently not worthy Of SO much credence as
upon the face of things would seem due. More
over, 1t should not be forgotten that Europeans
have reputation for getting out from under be-
fore the ultimate crash, the American investor
usually shouldering the burden. There has IN
doubtedly been considerable realizing by the
larger interests in the past few days In such
stocks New York Central. Union Pacific and
other favorites under cover Of advances in other
portions Of the list. Even those who believe
that stocks still on too low level cannot
but find satisfaction in the cessation Of such wild
tactics were INDUCED in last week, since the
to make for the likelihood Of break OF such
proportions to seriously injure speculative SEN
timent. So long the large interests have big
bond issues to place they cannot afford to allow
the movement to develop runaway proportions.
1t is the general opinion that the public has been
in the market in the last few days to a greater
extent than for long time.
Price Comparisons.
A. comparison of the prices Of leading railroad
and industrial stocks should offer food for re-
Election to investors contemplat ting embarking III
the stock market for the sake Of speculative
gains. The high level reached during 1902 was
admittedly beyond all reason, and yet present
quota lions are not much lower. st. Paul. for In
stance on talk of a repetition Of the Burlington
episode, sold at 1881, only 18 points from the
present level, New York Central, a result OF
the operations of Vanderbilt pool, was quoted
at 16sB-only 8 points above present prices s'es
ing the memorable Northern Pacific light; was
1888. Great Northern preferred was considered
in 1902 high at 208, tho it was then, as now,
much is heard. Pennsylvania, in fact, presum.
ably because in its case there are no rumors OF
merger, is almost the only stock OF nigh
level Of three years ago. 1t touching ITO In 1e02
The industrial list averages we'll up to the for
mer high quotations, as glance at the lst read
fly indicates Thus, for instance, American Car
, & Foundry sold in 1902 at 37b, American Loco.
motive at 36B, Republic Iron & Steel at 24A
present quota tons being respectively 70 "a, Al
bulls al que, will bring larger earnings and
larger earnings in turn mean Increased DIVIDENDS
One need not be pessim1sttcally inclined to grant
all this and yet to suggest that the progress be
| do hv at large has ALREADY
? found its full measure Of d1scounting for con
siderable time to come SO far as the stock mar
ket Is concerned.
Bankers Are Hopeful.
Banking interests see little possibility OF any
marked stringenoy during this year, which II
indicated by the fact that twelve months loan
are readily made at less than per cent. Ever
: the usual spring requirements of business VII
NOT appreciably affect the situation, for not onl.
is there a large surplus of idle funds all over tn
J. country but Europe stands ready to lend in thi
: market whenever rates become harder. None!
! lenders claim that the foreign houses are toda:
: probably not loaning SIC, 1000 in Wall street
+ whereas few years ago they were placing tel
d times that amount for their European clients
s The reduction in the Bank Of Germany dlscoun
y rate to per cent is an index OF similar cas-
of money abroad. tho the private rates of dis
+ count ore even more suggestive, that IN Pari
% having been as low as 1B per cent, With Tn
y general foreign average around 2 per cent.
J. Is only question Of time when both Japan an
b Russia will be in the market with large loan
|, to replenish their treasures, at which time tn
American stocks may find less demand abroad
/ Western Spectators.
20 The position Of the western speculative col
m tingent was a matter Of particular interest,
# view Of the cratic movements Of wheat.
d. was asserted that operators in both markets we1
"a reducing their stock commitments to protet
1e those they were carrying in grain. Aside frol
a. the decline in wheat floor traders protested
~ trace much Of the selling to western sources
in The street is rife with rumors of liquidation
I'd the Fart Of the very interests supposed to l
ly most active in supporting the Southern iron me
* ger. It is not at all improbable that the sho
- interest in the stocks concerned is considerable
III and that these stories are being circulated for
l. purpose. -
W. A new record in the sale Of bonds promises
80 be attained during 1905. While it Is practical
be impossible to state the amount in figures, yet
e is known that larger amount Of bonds ha'
Ill been sold since the opening of the year than
III any two months in the history of the countr
ed Retail bond houses report an almost unprec
. dented demand for the better class of bond
oe and new issues being absorbed as fast
y they offered D. 5. Scnron.