The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-06

MONETARY RETIREMENT

westward from New York was recalled
to await further developments. The
showing of the day previous was a
forecast, for only $472, 900 went out. 1t
was clear that the heavy drain was
close to the point Of stopping, and in
deed it has now ceased.
San Francisco was stricken on April
l8. There was a shock thru all the
world IS money markets, but no imme
diate effect in a large way. The city
burned, but such was the confusion Of
the three days following, SO broken the
lines of communication, that little in
the way of practical relief was done in
monetary sense until the Monday fol
lowing, altho preparations were made,
were numerous. On Monday, April 20,
money first began to move west in
great volume, and in the ten business
days to the time of the. return ship
ment, the sum total of 1874 $1,000 in
cash went forward, of which $29, 0OO,-
900 was transmitted thru the subtreas-
ury office, and $5,700,000 sent by mail
and express. go "a. 80 -.
This was drain upon the east both
heavy and unexpected The time was
unfortunate. For months there had
been intermittent periods of stringency
in the New York money market. Our
government, refusing help when there
appeared to be predominant specula-
ton and high interest rates traceable
to stock market activity, had at last
come to recognize in the situation a
degree Of legitimacy warranting steps
towards relief. In greater volume than
ever before the country. was using
money-using it for new enterprises,
for expansion Of old, for increase in
capacity Of industrial plants, better
ments for railroads, new building. This
. latter item had become especially prom
inent. Money was needed. Great as
is the supply and large as is the per
capita figure, it seemed that $33 per
capita or whereabouts, was not enough
for the people to do their business with
There was, of course, speculation ir
Wall street, but it could no longer be
gainsaid that the legitimate business
of the country was really creating the
= demand for the money 49, 49,
i The government had taken measure!
Z, to increase gold deposits in the New
York banks, and thus Tighten the pres
sure. The situation was clearing a lit
tie, yet the very fact Of governmental
recognition and relief Was evidence O.
= the need. - Hs,szs 9.G&1 ~ ,,
At such time came the San Fran
cisco calamity. There was demand TO
money, sudden and in some respect
unprecedented, that@coud neither shav
been anticipated nor provided for Tn
insurance companies had to have cash
o,o1 ho thousands pf ,poads
Immediate ana insistent, to be met
About $4,000, 1000 took the edge of
{. San Francisco will need much NOR
! First urgent demand has been satisfied
: The manner In which the fnancia
) east, already laboring under condition
unsettling and unfavorable, withstoo
this. strain speaks eloquently Of tn
T. general financial stability of the cour
a try, as Of the resourcefuIness of Wa
D street and the financial center. *
=. It was not surprising under the 81,
z cumstances that the stock tmarke
O. should have suffered severely. .Priee
declined rapidly, when once the fu
a extent of the calamity and the immel
s sity Of the money requirements wei
l. realized: In some high-priced stocks
y points and more came off the top fl
g ures But there was no panic or an.
y thing approaching it. Liquidation ra
II It's course. Technically the decline ma
q be accounted for by the selling out (
IS the holdings of the insurance compani'
IS caught for losses, or by other reason
= but in the true sense it was simply
e question Of the money. The COUNT
= needed the money to succor San Fra
:" cisco more than it needed it in tt
% stock market. g >.3sTe-@> go
a The Wall street situation does n
K therefore permit of the deductions G
It dinarily to be drawn. Wall street d
X counts everything. A great wave
e. prosperity breaking upon the countr
~ finds the street Informed in advan
nt and ruling itself accordingly. Likewi
v a great decline in stocks, especially
to long drawn. out and persistent,
TX dinarily foreshadows recession in &c
eral business. But anyone who dra7
as such conclusions from the recent {
be cline will probably find them to sta
4 for naught little later, for conditio
rs could scarcely be more favorable on t
in whole. There are labor troubles, tn
are unfortunate, but eliminating the
bs no important influence appears 9th
ts than on the favorable side. The COT
g ge try's crop promise is, unusually hi&
e With fairly favorable summer Sc
te. son, the country will produce NJ
nd wealth great enough to make possil
H. new records in MANY lines Of busin,