The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-08
A SICK STOCK MARKET

MoIe nSu1So 1oi tHe udlI-ye are
coming to hand daily, the latest and
most interesting being the compilation
covering new corporations and new
fotations Of stocks and bonds. The
first six months of 1906 witnessed a
grand total issue of 1927, 100000, new
high record. Of this sum $6O2,OO0,OOO
represents new issues Of bonds and
1925, 100000 new stocks. It was too
great a total to be readily absorbed,
consequently there are complaints of |
issues going off only half -heartedly and
Of some quite unsold. Every depart
ment Of activity enters into the com
pilation. There are industrial and rail-
road bonds that ordinarily would be
taken up readily that are dragging at
present. The Pennsylvania road has
issued new securities aggregating $780,
100000. With reference to gross earn.
ings the Pennsylvania is the greatest
of American railroads. Its credit is
high. 1t is tunneling across the river
into New York and has large terminals
planned in that city. This is great
Improvement, and has necessitated
heavy financing. One-half the issue or
$50,000,000 was placed abroad because
of better terms obtainable. The Bur
lington underwriting syndicate that I'M
dertook to float $4,000, 900 of new Sc
curities has dissolved, with about IS
per cent Of the issue unsold The Kan
sas City Southern car trust syndicate
has been renewed Six other important
underwriting ventures and a number
less important, might be mentioned,
that undertook the sale of new securi-
ties and failed and lost money thru the
handling or met only part success. This
is in sharp contrast to the times when
an underwriting syndicate composed of
great names in the, banking world
would get together and take over an
issue running we'll up into millions, sell
it off and pay its members handsome
profit in few weeks.
The fact is that this is not good
time to float new stock market ven
lures, not because people do not. want
! to buy the securities, or that there is
anything wrong Fundamentally, but be-
cause Of the great. and increasing &C.
tivity in other departments of finance
and the heavy demand for money in the
| commercial world. With big crops in
demand likely to be heavy, there does
for improvement. Ky. -. -. =. .~~
Wall street is disturbed over the real
estate, boom in New York. Money that
would ordinarily be used for other pur-
poses is tied up in, speculative ventures
in realty. So long as this situation re.
mains it tends to.-keep down interest in
the stock ,mar]zet:~-2The big men of the
street evidently; recognize this and re:
alize that aaaahull n1arkets6in stocks un
der existing connd itions Would be suici
dial, henceI their indifference and will
ingness TO see the market sag: They're
alize~ that no advance can be carried
along successfully without money to rur
it and some degree. of public interest
and the interest is not" there, for the
people are too busy elsewhere, and theil
money is with them in other ventures
This accounts for the seemingly con
Trajectory situation, that with GOOD
crop news and good news Of every kline
and. activity and prosperity general
the stock market has been weak ant
sagging.
The situation will right itself some
day, but how soon no one can tell. Las
season there was a money squeeze AMI
abnormally high rates, notwithstanding
earlier predictions that, there would b
no stringency. 1t is about time for tn
usual talk to begin about the indepen
dence Of the west,@and how the Yves
will finance it's own crop movemen
without calling upon New York. Thi
is pleasing talk, and moreover it is rel
atively very true, for the west no long
er depends upon New. York as it did il
former wears, Nevertheless, the indie
pendence 50 often. alluded to in tn
early part Of crop-moving season i
usually lost before the season ends, an
this year, with the great, business &C
tivity continuing, there is sure to b
:: much money needed if the crops turl
out as big as :promised. ~ H. =
The men Of influence in Wall stree
, who are lending their power to tn
maintenance of stability and are dc
crying attempts to bull stocks tina
7 might unsettle the money markets, IN
til such time as conditions change, ar
? doing, service to the country at large