The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-11-05
WILD SPECULATION
CROWNED UPON
Readings Boom Not Good
Thing with Money Still
Uncertain.
Special to The Journal.


New York, Nov. At Is asserted that there
is large amount Of the very high-priced is
sues of stocks in loans in the New York banks
today than has been the case for ten years.
Speculation in these issues was started with
the idea that it would attract interest to the
general market. The result has been the SEN
sation in Reading and others. Conservative in
terests say that the speculation in these issues
must be checked before the people will take
hold of the market whole. 1t is pointed
out that in case some serious factor in the sit.
uation should develop suddenly, these high
priced stocks which have been advanced so
rapidly would undoubtedly decline at about the
same rate or faster and work havoc with the
whole list. The prospects for gold exports
alone in view of the present poor condition of
the New York banks, with the cotton movement
yet to be financed. are sufficient to cause a
conservative feeling. When this is accelerated,
however, by general internal trouble thruout
Russia. there is the more cause for going slow
IN Wall street. International relations are SO
intricately bound together that trouble i'll one
portion Of the world inevitably has reflex IN
other sections France, and to a lesser extent,
Germany, heavy holders of Russian securi
ties, which, in the event Of revolution might
come upon the markets in such quantities as to
financial panic. This in turn would in
duce selling abroad of American securities, caus
ing sympathetic reactionary movement in this
market.
THE FRENCH government Is reported con-
templating further drafts upon the New York
gold reserve, to avoid such possibility, despite
The fact that the Bank of France already holds
$50 900 900 more of the yellow metal than a
year ago. accumulated against the contingency
of Russia trouble. Were the English and Ger
monetary conditions in more satisfactory
state there might be less cause for caution on
this side, but the Bank of England reports the
weakest condition for fifteen years Only by
the most strenuous efforts the Bank Of Ger
many able to improve its condition. 1t Is true
that the local money market is in more favor
able position than 1T few weeks ago, but
1t is a matter of considerable doubt If the
easier tendency will endure for any length of
time 1t will depend to great extent upon
the amount Of money that returns to this cen
ter from the interior and the size of the gold
exports. Trade expansion in all parts Of the
United States may work against large return
flow Of currency to New York. while exports of
gold may be heavy enough to cause scarcity
of lendable funds for stock exchange require
ments. Money is in demand the world over.
COMPETITION in railroad building is pre-
dicted to succeed the recent era of competitive
Pacific head. Mr.. Hartman, passed over
lightly by Mr.. Hil it nevertheless deserves
careful consideration. Community of interest
is phrase less often heard in Wall street than
formerly, the events of the past few weeks
having often proved its fallacy. At least Sc
far the trans Mississippi situation is con
cerned there is every indication that the big
roads not working any too tremendously
plan for Pacific coast connection, while the
Thus the Goulds are pushing the Western Pacific
Burlington is apparently heading-Hill denials K
the contrary-for Salt Lake City, heretofore re
garded Union Pacific territory. The St. Pau
has long husbanded its resources for the inevit
able progress to the coast, althO operating
under agreement with the Union Pacific. Witt
the latter system advancing toward Seattle ant
the Hill system in the direction of San Fran
cisco. it certainly would that o
competitive building opening.
RAILROAD EARNINGS received last weel
were uniformly favorable, except in the o
some of the roads in the southwest and thu
Wabash but the declines when made reflected
local conditions rather than factors affecting thu
country's traffic outlook. In most parts of The
country there is traffic being offered thai
the roads handle and a consequence
there is considerable congestion at the chic
railway centers and activity the part of th,
car building companies to meet the requirement.
of the transportation lines.
DESPITE the recent success Of the people Il
advancing prices to high records, the disin
clination of the outside public to be drawn int
the stock market stands out In sharp contrast
For long time commission houses, much a
they would like business, have not been abb
TO conscentiOusly counsel their clients to gur
chase, believing that before any real bull can
paign be carried to completion sharp sci
back must take place.
JAPAN will probably again appear boz
in the worlds markets within fort
night, the scheme in contemplation being a ger
eral refunding of the sundry internal loans an
the. g per cent bonds of the first and secon
o series. The news passed unnoted in
portant matters monopolize the attention
operators in the stock market.
STANLEY Schroff