The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-15
STOCK EXCHANGE IN
4 PENS|VE MOOD
Business Good Everywhere Else,
but Wall Street Very
Dull.
Special to The Journal,

New, York, July 14.-In spite of the
favorable business conditions turnout
the country and the prospects of good
crops, men who are watching the stock
market closely here are inclined to be-
heve that it will be attractive only to
traders for some little time. While it
is still predicted in some quarters that
prices. are going very much lower, the
prevailing opinion is that the fuctua-
tions will not be wide in either direc-
tlon and that unless some new adverse
factor develops, the tendency will be
toward gradual Improvement. More
is heard with respect to money than the
crops as market factor.
A prominent banker in discussing the
monetary situation, says that while he
does not look for a serious squeeze. he
believes that the demands for money
from all sources will be sufficiently
active during the next six months to
keep rates well up. He says also that
the bankers are holding back their
higher in the autumn. A Philadel-
phla, banker who is in town says that
the banks in that city are Offering to
pay 1 per cent to depositors on funds
placed with those institutions for
year: He adds that never before in
ms twenty years experience in that
city have the banks offered so high a
rate for deposits.
A RAILROAD official who has had wide
experience in placing railroad securities
says that the rapid growth in the bust
ness Of all the railroads makes it neces-
sary to supply large amount of funds
steadily for improvements and for
his company is good, he says that it is
impossible to sell securities at this time
and that consequently all of the avail
able surplus is being put back in the
property. Another shrewd observer,
in commenting upon the situation, says
that he believes that it will lead di,
rectors to husband their funds and not
declare the larger dividends that they
would have disbursed if the bond
market were in a more favorable condi-
ton. -"
The crop-moving period is only two
months off. The very excellent out
look for the harvests means a heavy
sources, coming at time when business
activity is unprecedented. New York
has thus far not been able to get any
gold in London, but it has secured
$1,50O,OO0 from Australia which will
arrive here next month. International
proposal of gold imports at this time,
since the foreign situation is thereby
weakened, rendering assistance much
less likely next fall in time of actual
need.
There has naturally been a7*great deal
of discussion as to the position of life
insurance companies as result of the
law recently passed, requiring them to
sell certain grades of securities within
a period Of five years. AS is generally
known, this measure is to be contested,
but man who is familiar with the
policy of one of the three largest life in
surance companies, says that his com
the contest, but will proceed to sell the
securities covered by the law as the
market will take them. Shrewd OBJ
servers are of the opinion that the
standard securities which have been
coming upon the market whenever it
displayed strength represented, to some
extent. at least, the holdings of the in
are of the opinion that selling Of this
character and by private investors will
be sufficient to prevent a general up
ward movement in the market.
A man who is we'll informed regard
ing United States Steel affairs. and who
ms of the corporation for the June 80
quarter at $3S,000,00O, is now of the
opinion that they will be nearer $39,-
100000 than the former figure. He
says that if the crops this year are
reasonably good, the steel business
should continue on practically the same
large scale which now prevails for at
least another year. With respect to the
reports of scarcity of labor in the Pitts
burg district, he says that it is not a
new condition, as it has prevailed for
the last five years. He adds that there
is no greater scarcity Of labor now
than there has been during that period.
It is probably no exaggeration to
estimate that $500 100000 Of undigested
securities are still locked up in the
vaults of Wall street houses, which,
tho gilt-edged in most cases, have alb
solutely no attraction for the investor,