The Saint Paul globe., 1905-03-13
Points Rise.

Delaware & Hudson ........ AZ
Delaware, Lackawanna & Western 100
Louisville & Nashville ............ 40
Manhattan Elevated .................. 33
metropolitan Street .....,......... 16
Missouri Pacific %
New York Central .. AZ
New York, Ontario & Western ....... So
pPen1SyIVania -.-------..-.......... 80
Southern Pacific Observation-Disclosures. 81
1Tnio,, De- .:....-.....'.'.... ae
Sh-Oh 1aSihC .............. DO
What has happened to practically double
tne value OF Erie, Reading, Southern and
Union Pacific lin that time? No doubt
some or the shares in the list were unduly
depressed year ago, and some of them
ure OF prosperity: but no experienced
hnancier pretends that improved condi-
tions justified such an unusual advance as
fully discounted all the prosperity in sight
and the stock market would be quite ripe
Tor reaction were it not for the generally
satisfactory condition of business for easy
money and the consequent strong temper
OF optimism which prevails everywhere
ana winch at any time may easily run into
state of dangerous overconfidence. Just
now the market presents a strong front
owing TO skiliful manipulation by the pro-
fessional element, although there are con-
tingencleS in sight which might bring
about a reaction when least expected
Money rates have continued easy so long
that no apprehension of difficulty exists in
that quarter; yet there is a drift In ten
denotes that calls for watchfulness. even
in this direction.
Surplus Takes Drop
Last week the surplus reserve dropped
down to 81, ,000. 900. 1t is likely to decline
still further, and may be wiped out al
together before the 1St of April unless
there is a contraction of loans or an un-
expected influx of currency from the in
terror. The government is steadily with
drawing its deposits from the banks, and
at the middle OF March some $13,O0O,0O0
will be withdrawn on this account. AT
present government expenditures are eX-
ceeding income, and a deficit of $1S,O00.-
year, which suggests that the treasury
will continue to reduce government de-
posits. After the middle OF March the
demands for April settlements will begin
to be felt. so the possibility of temporary
contraction in the money market during
the next three weeks is one to be guarded
81, I34, 00o. 900. which was only about
SS.OOO.OO0 under the record. Compared
with year ago, this is an expansion of
sl34,OOO,OOO more than one-half OF which
nothing to cause uneasineSs in these fig
ures. but they show that the money mar
ket Is as much exposed to manipulation
as the stock market, and a temporary
big operators, would cause no surprise.
No permanent rise in money rates is.
however. likely while ease is so pro-
nounced in the European markets.
1t is quite evident that skillful manip-
ulation is at the bottom of much of the
present rise in stocks. Improving peace
prospects, the reduction in the Bank of
England rate and continued strength of
the London market infused fresh life into
the bull contingent in this market, but
II should be remarked there is conspicu
Gus absence of genuine buyers at current
prices investors are not taking stocks
at these figures, and the public is not
speculatlng to any extent. for the reason
that nearly all conservative and reputa-
BILE commission houses are cautioning
their customers against plunging on the
long side at this time. The result is the
stocks as freely as they desire, nor are
they likely to dispose of them very easily
at this level. Perhaps this explains in
part our continued high loans. The mar
ket is liable to be bulled into stagnation
and a sharp break then win be needed to
galvaniZe II into fresh activity A mod
crate decline occasionally hereafter will
prove beneficial, by checking overconfi-
dence and introducing a new buying ele-
ment that VIII not enter without induce
ments There are no bear arguments In
sight, but the market may soon need
some readjustment upon a more natural
basis.
Albany Legislation
One OF the most Objectionable and un-
just pieces OF legislation attempted in
many many years Is the proposed tax on stock
likely to become law unless the legisla-
ture wakes up to the folly and futility of
such tax before 1t Is too late. This Is
another example of the taxing power be-
ing used to drive wealth out Of the state
and into concealment II the measure be-
comes law 1t will divert much of the stock
serious detriment of New York as a finan-
cial and banking center. Apparently it
originated in the brilliant imagination OF
some up state hayseed legislators who
QellRnt In every OnnOrtunifV nf incraa sing
the burden of taxation on this CITY which
already pays much more than its Just
sake OF fair play let the bill be so amend
ed as to include farmers sales of eggs
milk hay, barley, cheese, etc. That would
certainly produce very comfortable rev.
enue, and would possess the advantages
OF being more equitably distributed and
would be vastly more certain Of collection
than the stock tax. The latter seems so
grossly absurd that New Workers have
not taken the proposal with sufficient
seriousness. They are likely to be sur
prised. however. unless vigorous opposition
sets in.
The measure should be promptly crush
ed, for it is not only OF doubtful consti-
tutionality. but very obnoxious example
exchange cheerfully complied with the ma
tional tax on stock sales for patriotic rea-
sons and because it was a war measure
that applied to all markets alike. Under
existing conditions state stock tax would
operate not only as an iniQuitous dis
elimination against New York in favor OF
other cities, but also as a totally unwar-
ranted discrimination against securities in
favor Of commodities. Driving business
elsewhere would deprive the state of the
expected revenue, and the tax when paid
would fail not upon stock exchange mem
bers. but upon a class Of customers least
able to bear ii.
II Is about time we instituted hall Of
cranks as a natural counterpart to the
hall of fame. In the former we should
conspicuously inscribe the names OF the
promoters of this beneficent measure; SO
that posterity should not forget those re-
sponsible for such dazzling example Of
enlightened and efficient lawmaking.
Henry Clews.