The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-10
CAUSE AND EFFECT
IN STOCK market
Manipulation Of the industrial
Issues Disregard for Con-
servatism,
Special to The Journal.

lation of industrial issues, particularly
the southern iron and steel group, while
-evidencing the strength of the pools.
tends to make sentiment on the stocH
market more conservative. -Incessani
activity of the bull cliques in. the face
of 10 and 20 per cent call money, goe
to, show that they have provided them.
the shape of time funds, and are hence
ohlivious to the temporary stringenc,
resulting from the heavy December dis
bursements. Brokers of long experience
In Wal. street, however, realize tina
continued feverishness, such as wa
shown during the early part of thu
week, could only end in bad break
affecting not only stocks advanced be-
yond the bounds of reason, but ais
standard issues. Wall street, in its owl
characteristic manner, has INDUCED II
very large measure of disceuntine
From the intrinsic standpoint it is es
peclalIy hard to reconcile such price
as 129 for Tennessee Coal & Iron
which only three years ago sold loo
point lower. Reports of southern iroI
and steel mergers have in the pas
proved very unreliable basis for tn
purchase of stock, as is evidenced by tn
25-point lower range of prices for Sloss
Sheffield common. as compared witt
quotations last spring. The public ha
been totally Indifferent to the manipu
! lated advances. The commission house
warned their clientele, and 13-poin
gains in Tennessee Coal and s in Ma
tional Lead had little attractions 70
/ outside capital.
While there is nothing in the gen
eral position Of affairs affecting ad
versely the intrinsic worth of America
investment securities, it should ibl
borne in mind that quotations for stock.
/ have been advancing for many week
without an important setback, and thil
being the fact, the chances are in favoi
of the development of a reaction whicl
may cause considerable injury to tn
people who trust to small margins il
their Stock exchange transactions. j
is not at all unlikely that eventualli
prices will go much higher, but in TIL
meantime there may be periods of dis
tress for the "little fellows Thi
larger operators doubtless would not be
4 come alarmed if there should be shar
II decline in prices; indeed, they probabl
would welcome such movement, as j
q would enable them to add to their hole
ings at prices which would bring the1
that among the high grade issues Cana
dian Pacific, st. Paul and Union Pc
cifc will go to far better figures. Will
it IS thought that among the low-pricei
stocks Chicago Great Western. Colorad
Southern and Missouri, Kansas +,
Texas will be feeders of the market i
the course of the next six months.
r. A peculiar element has been injecte
into the monetary situation by the fol
Marding Of GOLD, from New York t
I Mexico. The gold goes to Mexico
pay for Mexican silver pesos, or Ne,
lean silver dollars. The commercial va
ue of silver has risen until the silve
In Mexican pesos Is worth more tina
its gold rating. There is, therefore,
profit in buying silver pesos with gold
The pesos are not being acquired to b
melted down into bullion, but to b
shipped to China and other countries i
the east. where they readily pass GU
rent as money and consequently hav
a little more value in their minted fori
than they would have in bars or ingot
The silver production of Mexico
enormous. and that country can furnis
all the silver pesos that may be Gale
for In exchange for gold.
. The cause of the advance in the pric
OF silver is not altogether clear. Thel
has been no contraction in the world
|, output; but, on the contrary, an Ell
, largement. which can hardly have bee
equaled by an expansion in the utiiiz:
. ton of silver in the arts. One countT
after another has abandoned silver as
money standard, and thereby restricte
. the use of silver as money, and as COZ
. sequence there has been no augment;
ton of stocks of silver money to e.
) plain an increase in the demand fl
and consequent gain in the price {
. ties who entertain the idea that II
rise in silver is to be ascribed to I'll
enormous addition to the world IS gu
put of gold
, The president Is message was receive
J In the light of a most CONSERVATIVE
document, and tho prices general
! eased off after it was published, tn
!, was due in small part to anything tn;
. could be construed as radical in I'll
, recommendations contained in the me
sage: That portion which was devote
to the regulation of railroad rates w;
] regarded in the financial district as M
of a particularly alarming characte
: while the statements covering corpor
! tions were received favorably. 1t
: the opinion of close observers of I'll
, market that since the president 8 me
{ sage has been published and the par
graphs with respect to railroad-ra
! legislation digested. the standard RAJ
) road stocks will assume considerabl
) than they have taken recently.
4 Wall street men who have the plea
2 IRE of the acquaintance of the pres
D dent, know that he is not antagonist
q to corporations properly managed. The
point out that 1t will be much bettl
e to have this rate question and 9th
Q matters pertaining to corporations sc
!. tied under the direction of a preside
!, really friendly to corporations, rathi
g than to have no action taken at tn
( time and have it come up later under
2 | lnv, ~ l., -
d tagonistic to corporations.
Stanley Schroff