The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-05-18
Henry CIeWs Takes a Look at
Money Conditions.
CESSATION OF COAL STRIKE
This Has Caused Market to Assume a
More Stable Tone; Cheap
Coin Not in Sight.

New York, May l4.-Henry Clew
says there is more hopeful feeling
now prevails in financial circles. Thi
may be attributed partly to improve,
monetary conditions, and partly to tn,
fact that all known untayorable cir
cumstances appear TO nave been discount
ed by the decline which eliminated ;
week ago and which resulted in de
probation estimated at nearly 81 900,
100000. After such prolonged ant
radical decline, recovery was perfect,
natural A large short interest had beer
created, and buying on this account not
only induced Il rally but satisfied, TEN
porarily at least, the bear operators who
had made very considerable profits. The
fact, too, that the market could with
stand such series of shocks as have
been encountered during the last few
weeks, some of them of rather violent
nature, gave confidence to the under
tone of the market.
Liquidation has been very severe anf
the technical situation considerably i'm
proved thereby. A year ago it would
have been impossible to have made any
body believe that such depreciation as
has just been experienced could take
place without prcci pitating serious trou
BILE, if not actual panic. That the mar
ket has withstood these extraordinar,
shocks without single failure OF i'm
portance is remarkable testimony of gen
eral financial strength and soundness
Much of the rise this week has been due
to short covering Nevertheless, it is
proper to recognize the improved fea
lures in the situation. For months past
the key to the stock market has beer
held by the money market. The enor
nous expansion of loans, out of al
proportion to the increase in banking
capital, and the extraordinary creations
of new capital either in the form O.
stocks or bonds, placed strain upor
the money market that was both threat
ening and at times alarming. Fortu
nately heed has been paid to these sym
ptoms of OVERRIDING and the Stock Elk
change has already experienced it's share
of liquidation or readiustment. Wher
relief was necessary it was obtained
from abroad, and the gold thus ordered
was made Immediately available foi
credit purposes through the prompt &C
ton of Secretary Shaw 1t is quite evi
dent also that. if our needs demanded
further assistance from this quarter, it
could. be obtained. The European stu
alton has much improved during the last
few weeks. The Moroccan affair was
settled for good; the Russian revolu
ton is progressing on more peaceful
lines, and the French republic has dem
onstrated to the world its stability ant
it's power to govern by vigorous sup
preston of the threatened May Day dis
turbances. Germany for the present al
least is not a disturbing element, for thi
reason that owing to her recent polio,
she is isolated and has lost the friend
ship of Russia, France and England. I'm
der such isolation German ambitions are
likely to be restrained, thus making fo
general peace. All of this is important
to the New York stock market, mas
much as in case of need we should be
more free to borrow in London or Pari
than if different conditions prevailed.
Another element of strength in the
stock market was the cessation of the
coal strike. For the miners this proved
most unfortunate affair. inasmuch "a
they lost about months wages, ao
gregating nearly $S,OOO,OOO, to say moth
ing of the loss of prestige to MIR. Nit
chell and his immediate followers. The
public at large will probably thank Mr.
Mitchell for averting the struggle, whicl
would have involved widespread disaste'
and possible defeat to his own men, "a
well as an increase of several millions
in the cost of coal to consumers
Amongst his own followers, however, Mr.
Mitchell is quite likely to lose confidence
and his unfriendly rivals within the un
ion will certainly use this defeat to hi
detriment as much as possible. For the
coal operators the occasion has been one
of increased advantage not merely II
holding in check aggressive union de
mands but also by enabling the com
panies to dispose of surplus stock at
better prices than would have prevailed
had no strike been threatened The com
paMes had a surplus of about l0.OOO,OOt
tons on hand, much of which they SOLD
at an increased profit.
The government winter wheat report
showing a condition of 81 per cent, com
pared with 92.5 per cent at the same
time last year, was an encouraging tea
ture. This is also an improvement OF
nearly two points in the condition ove'
last month; and, while the crop does
not promise to be an extraordinary one