The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-04-01
The Money Situation.

The money, situation has been the
subject Of thought in the east this
week. Nearly everyone believes that
money rates are to remain low, and to
financial New York this means much,
for there is big boom in stocks in
prospect if conditions do not change
unfavorably. mn. ri
The trade, reports have been run
ming so uniformly good since mid
March, the railroads have had SO large
an increase in tonnage, and the great
industries. steel especially, have booked
so much new business, that. on these
things alone an advance in the securi-
ties markets might reasonably be ex-
pected.
When it is considered that in con-
nection with all this navigation on the
lakes is opening early, with no labor
trouble in prospect there, as was the
case last year, and that big carrying
look generally is very good, and that
more important than anything else, the
winter wheat crop is coming along in
splendid shape and spring wheat is
being seeded under splendid conditions
over an area probably larger than last
year, it will be seen that there is much
to justify confidence in a good year.
! The stock market always runs in ad.
| vance of conditions, and altho securi
ties prices now are high compared with
the low levels of year ago, there is
still much to indicate that they are not
yet at the top.
One thing only looks a little uncer'
tain at this time-the money market
The war in the far east is the first con
sideration in this connection. Peace
would be stimulus in all financial cen
tiers. Hence the talk of peace one day
and of continued hostilities the next
makes uncertainty. With this it is the
expectation that Secretary Shaw, in or
der to bring up the treasury surplus
will call upon the big banks for the re-
turn Of about 100000 Of government
money by June l. The government
revenues this year have held up we'll
but expenses have been larger, and te
keep the surplus from going low the
call may have to be made. This is by
no means a serious thing, but it is one
of the considerations of the day.
The eastern banks will also begir
soon to feel the drain from the west
for at seeding time there is always
more or less money needed. This, again
is no big matter, but it may have Its
minor effect. On the other hand, the
very highest authorities in the finan
cial world do not look for an increase
in rates, and that they are sincere in
their statements to this effect may be
! inferred from their recent activity II
helping finance the new Japanese loan
It is hardly supposable that It there
was a money stringency in; sight, the
American bankers would be loanlns
money to a. foreign government.
| This money-rate situation will b.
clearer in week or ten days. Then
if it is seen that rates are to remain
low, speculation in stocks may be ex
pected to increase, for easy none,
makes speculative activity. This is thu
only thing that will prevent rise II
stocks.
Such a statement, Of course, bar
possibilities on the unfavorable side
There is a little trouble with Venezuela
and our relationship with San Don1ing
could give rise to situation that woul'
check an advance. Also the crop pros
pect, now so favorable, may change
All these things may happen; but ad
verse happenings are always posi-
bility. In the evs>ks however, tina
nothing very bad comes up, and none,
rates remain easy, it is almost eel
tainty that a rise in stocks will be see,
a little later in the season.
Some Thomas doubters at Excelsio
! o1~.,