The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-04-22

Financiers Believe It Will Work
Out for Good Ulti-
mately.
Special to The Journal.

Special to The Journal.
New York, April 21.-The San Fran
Ecisco horror continues to be the lead
ing topic in financial circles. Its phases
and possibilities are discussed with alb
I sorbing interest, but it seems evident,
from the general tenor of comment,
that as an adverse market factor 1T
has already begun to wane. The blow
to sentiment has been severe. Cont
dence, however, remains mistaken. FL
nanciers, capitalists and leading opera
tors are generally agreed that, while
important plans in and out Of Wall
street having vital bearing On the
market, have been interfered with by
the western disaster, they will yet be
carried out.
There has been a great absorption Of
stocks the past three days by Rookie
Teller, Morgan, Hartman and other in
terests having undiminished faith in
the general industrial situation and
outlook. Well-informed people estimate
these purchases as high as 100000
shares chiefly of Union Pacific, South
ern Pacific, Reading, United States
Steel Amalgamated Copper and Ana
conda. These interests know that the
damage of railroad property in Cali
fornia has been greatly exaggerated.
They know also that such losses as the
roads have suffered will be made up
later in the season from" the increased
u earnings growing out of the necessities
of the state. Building material, cloth
ing, food and other supplies will be
shipped to San Francisco during the
next few months in enormous quant1-
ties. Replacement of merchandise will
Of itself involve big tonnage. It is
the shipments of building material,
however, that will contribute most. to
the increased traffic resulting:
. 2 The reluctance of the English lnstl-
tuition to aid New York in time of need
If money is not surprising, since its re-
cent weekly statement showed loss
in bullion of. 81 100000 The reason
for the desire of the Bank of France
to accumulate gold, it's holdings the
past week increasing $6,75O,000. is ex-
planned by the Forthcoming Russian
= loan Of $400,0O0,000, which makes it's
appearance synchronous with heavy
Rotations of $15O,000,000 French rentes
and $3.50. 100000 German and Prussian
bonds. It is significant that the Ger
man loans were not heavily over-sub-
scribed, suggesting no ready absorption
Of the immense Russian loan, altho it
bears a high rate Of interest. .-. ..
s. According to authorities who recent
Z ly have returned from Europe, foreign
capital is more disposed to move into
American investments than it was a
few months ago, while speculative in
terest is beginning to turn from the
South African mining shares to the
American market, especially in the case
Of the copper issues. Whether the San
Francisco calamity will not check this
temporarily, is a consideration.
= It is understood that the supply of
copper abroad is extremely limited
while it is known that the consump-
ton in this country is heavy enough to
prevent the accumulation of large sur
plus stocks. Earnings of all the cop.
per companies are heavy. The fact that
quotations for many issues are selling
at a level which does not net current
buyers large returns on their purchases
does not upset the speculator g theory
that, with the return of easier rates fol
money, stocks will move to a higher
quotation level, nor does the large
amount of new security issues now com
ing on the market encourage the belief
that there will be a congestion Oh
stocks harmful to bull operations.
While admitting the anomaly of peri
- odical furries in call money from q
to 100 per cent, the conservative ele
ment in Wall street finds the idea Of
establishing 5O,OOO,OOO or 100000,
600 bank decidedly amusing, asking
where the funds are to come from whel
the very people making the cutlery ar
those most urgently seeking accommo
dation with which to carry their ex
tended commitments. Altho some bank
may have taken advantage Of the situa
tion to squeeze their clients in orde
to make large profits for shareholders
the monetary situation has been legiti
mately firm.
Secretary Shaw's action in facilitat
ing the gold import movement contin
ues a subject of much discussion, bu
the concensus of opinion among I'm
- prejudiced bankers is that the secreta
ry's move is one which will have onl
beneficial results to the financial com
munity. It is pointed out that niue
of the adverse criticism Of this ste
comes from quarters which, for pei
sonal reasons, are biased. But the az
tion, viewed in broader sense, is cor
sidered fortunate. Not only has it re
ieved the money situation now, bu
in the opinion of experienced banker.