The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-24
MONEY AND STOCKS


meet the wishes of the bull ele-
ment in the stock market, or to meas
ure up to the predictions of the opti-
mists of a month ago, showed, never
theless, a strong tendency towards i'm
provement in the financial situation in
New York. The loans of all the New
York banks reporting, increased
$1,543,100, and the deposits increased
by $1,139,900. Hence the showing
would have been called standoff, I'M
der ordinary conditions. When it is
considered, however, that the volume
of business in stocks is holding up t,
daily totals remarkable for the holiday
season, and that, with demand for
money for speculative purposes show
ing no diminution, the Chicago troubles
took 100000 out of the New York
banks at once, the showing for the
week is very good one. ss- -s.
The three Chicago institutions.
known as the Walsh banks, had bal
ances in New York, and the first effect
Of their embarrassment was the shift
ing of this money to Chicago, where
it was needed. The fact that the banks
of New York held their figures about
stationary against this sudden cali, in
dicates that money from the south and
west has begun to go back into New
York, and that, had not the trouble in
Chicago appeared, considerable in
crease in reserves would probably have
been made. ~ ...r
Rates have been high in New Yorh
for loan on call is naturally attracted
that way. For the naxt week or two.
thru the holidays and opening days of
the new year, huctuation in the rate
of interest is expected and high call
money is not improbable Everything
indicates that after the loosening up
of the Jan. 1 dividend and interest dis
bursements, and the setting in of "a
steadier stream of money towards the
east, the tension will be relaxed and
call money rates decline. IF this comes
about, bull market in stocks seems
almost certain. % .-a'
Wall street is waiting for the big
bull market. There have been advances
of late, especially in the coppers. With
occasional declines the trend has been
upward. Yet the real bull market has
not yet been seen. It is a daring thing
to forecast the stock market. No man
is equal to it, and the wisest and most
experienced go wrong. But the signs
that point to further rise are many
and unless these. signs are to fail
stocks, entirely aside from their pres
ent position, and their values with ref
erence to earnings, will 90 higher. A
multitude of considerations, ente,
into it.
The government final summary Of
this week, giving the results Of the
!. 1905 harvestq.a showed figures thai
could not fail to- inspire confidence il
! one who read them. It may be thai
+ the favorable influences have beer
fully, or at least in part, discounte
If this is so then the situation would
not appeal especially to one basin}
operation upon the longtime factors
ordinarily known as Legitimate in
fuences, that in the windup alway
make values The speculative view
however, permits Of belief in 8 ris
to come, even if it be true that stock
are high enough. The public, that arm,
Of people that at intervals Of sevora
years dips into speculation, has no
appeared in Wall street. Every grea
and prolonged rise finds its culnlina
ton, unless wars or other powerful in
fuences intervene, in the coming i
Of the public. When everybody begin
to buy stocks it is the beginning o
the end. +: ~ ..- :
A number Of Influences of a natur
to keep the PUBLIC out, more power
full than any that had appeared 70
years, have been dominating sent
ment. Thousands Of observers of COZ
ditions have felt that sooner or late
Russia g troubles would bear so pol
d, erfully upon France as to cause PAM
in Paris, and sympathetic disturbanc
in London and New York. This alon
prevented OUTSIDERS from VenJur10g IL
Then the insurance scandals have III
} settled confidence, and Lawson ha
ever been predicting an utter smasl
The wonder is not that the publ
J stayed out, but that Wall street di
so large a business as the reports shov
, All bad influences have to spen
themselves sometime. When the wors
has been heard confidence comes bac
gradually. Some day the scandals an
dire predictions will cease. The publ
2 hearing about these Things, will /
! more likely to come in.
: The Russian situation is the powe
5 full factor and the one of greatest u,
: certainty. Its effect upon the none
markets of Europe may be felt j
panic. Tho so long delayed. that it
j, no longer feared, this NAV yet com
E If this Russian uncertainty be elir
mated then it would appear that IL
speculator will have his great day
S Wall street some time next year, whe
4 the prosperity of the country TAX
precedence over other influences, ar
the public comes into the street