The Owosso times. (Owosso, Mich.) 1897-1926, 1906-10-19
Weekly Financial Review.

The best feature in the financial
situation is the easier condition of
the local money market. Both call
and time rates have declined six
months time money being quoted at
5 u a. per cent-the lowest rate
since the crop movement began. This
relief, is, of course, due to gold i'm
ports, treasury disbursements and a
probability that the efilux to the in
terror has reached its height. From
now on easier local conditions should
prevail and bank reserves should rise
until the end of the year, provided
no disturbances occur during the in
terval and the shifting back of Amer
lean loans in London does not pro-
coed too rapidly.
The condition of the money mark
ct and the high level of prices would
make the present inopportune for
an active bull market were it not for
the irresistible manipulation of
few powerful operators. Prices at
times have shown great strength,
particularly under lead of the Steel
issues, which are making extraordi-
! nary profits; and which are expected
to benefit largely by the recent ore
deal So long as general outside
conditions remain so favorable and
money reasonably easy, it seems i'm
possible to restrain speculative oper-
ations. 1t is known that many OF
our largest holders are in favor of
higher prices so as to effect a more
cohplete distribution of stocks, and
this fact is readily taken advantage
of by bold operators who follow such
leadership and who naturally look
to profits which can be made in the
immediate future than to the conse-
quences of excessive initiation which
must be endured later on. OF course
the higher the market is forced the
more certain will be the chances of
reaction and speculative opportunity,
but the tremendous resources of pres
ent leaders are an element in the sit
uation which cannot be overlooked
Our big spectators are in very
strong position, and being loaded
with surplus stocks must strain every
means to secure the advantages of "a
most exceptional business situation;
as also must those who have been
carrying new issues hitherto unmar-
ketable.
The October government crop re-
port was highly satisfactory, indicat-
ing a accommodating crop of corn
amounting to 2,7S0,0OO,OO0, or near
ly S0,000,000 in excess of last year
The wheat crop shows a reduction
of about 100000 from earlier es-
Inmates, but the yield is still expect
ed to reach nearly 740,000,000, or
only about 100000 bushels less
than the high record crop of 1901.
Some damage has been done to the
cotton crop by the recent Southern
storm, yet the promise is for full
yield, so there is nothing to inter
fere with continued prosperity for
this season. What the next season
may bring forth will be a matter of
extreme importance. After such a
long succession of good harvests, it
seems almost too much to expect an
other year of such good fortune. Sit
uated as We are upon a high pinnacle
any crop failure in 1907 would be
matter of more than usual import
ance. That, however, is a question
too far ahead for present consider
alton. During the next few weeks
the stock market stands exposed to
more or less conflicting influences.
The political campaign is being con-
Quoted at high pressure and may
develop economic issues of much i'm
portance, especially in the Congress
sional. districts. Shorty after the
fall elections Congress will convene.
and it will be interesting to observe
the effect of the socialistc move
ments in all parts of the country up
on new legislation at Washington
Cuba is sure to become a subject of
active discussion. 1t is fortunate |
for many reasons that these new is
sues are bling agitated in time OF
general prosperity rather than in one
of universal discomfort when radical |
action would be more dangerous
than now. One of the natural con-
sequences OF railroad prosperity is |
the growing demand for lower |
freight and passenger rates. Labor
was first to share in railroad pros
perity and stockholders are now be-
ginning to reap some of the benefit. |
Last and not least the shipper is be-
ginning to feel that it is his time to
have a share, and unless all signs
fail there will be considerable agita-