The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-07
4 SPEECH MARKET

i :
new with the sky clearing
and the storm clouds of money string.
ency lifting, was straightway beset bJ
a gale from another quarter. The street
has run into secondary period of mon
etary speeches and financial warnings.
Some time ago, before the money
troubles came to the fore, Mr.. Wander
lip, the former assistant secretary Of
the treasury and present official of the
National City bank, delivered an ad.
dress before the bankers association
He dwelt upon some simple facts well
understood, and pointed out things that
everyone already knew, yet he startled
Wall street very perceptibly, for, the
bulls and bears knew all about it, they
are not Of the temper to stop and think
of unfavorable things when bull mar.
ket is on, and they had not given time
to consideration Of the probable effect
Of adverse factors they knew to exist
Now, after time of attention to other
very pressing matters, the street is
again experiencing a "speech market. !"
Mr.. Shaw, who, as secretary Of the
treasury, has a plan for the creation Of
an elastic currency, has been heard upon
the subject, and also incidentally upon
the legitimacy Of the recent money
pressure in New York, which scarcity of
cash, with its attendant interest rates
at abnormally high figures, he maintains
was due less to speculative than to pure.
ly commercial causes. Mr.. Schiff, the
active head Of a very prominent and
powerful banking house, has commented
upon Mr.. Shaw's currency plan, with.
out Endorsement, but with severe criti.
cism Of our present cumbersome finan.
cial system and a warning that panic
! will be our ultimate punishment if we
do not reform. Mr.. Vanderlip, Mr.
Gage, who was a predecessor of Mr.
Shaw in office, Mr.. Eckels, former
government financial officer since
turned banker, and Mr.. Forgan Of Chi
cago, all comment upon Mr.. Schiff 4
speech, and their remarks in turn are
the subject of discussion by all the
minor stock and money market authori
ties and writers Of the daily gossip. One
may be pardoned for coming new ex
preston to fit situation, and unless
something more apt shall come to mint
the term ''speech Market may serve t,
describe market like the present one
Nothing SO unsettles the speculative
mind as succession Of speeches or in
terviews emanating from men Of fnan
cial prominence, in which bad features
are emphasized. Itmatters not that MI
Schif rolled out no new thunder, or tina
in his remarks about panic he probably
had in mind period at least twelve
month ahead. The Interpretation wa
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was to chill the market. Further dis
cussion of the subject by other men O.
prominence served only to make tn,
hesitation about market conmitmen
more marked. .-:.-...f. =
All this expression concerning ou
financial shortcomings and needed RENE
dies is very beneficial, especially 50 j
that it comes from men Of practical ex
perience rather than from theorists
while as to timeHness nothing could b
more opportune than the stirring up o
a general healthy interest in currenc,
reform just as congress Is again read,
to get down%to business .-@.
The effect upon stocks has not bee:
serious. Warning from d high fnancia
source is not always safe indication o
| WY O4GOA LII Law IL WuA "A
out the other way, for many speculator
are scared out of their holdings, whic
pass into stronger hands, and if a sbul
; market is on, and the general tren
upward, as is apparently the case now
: the technical position Of holders who ca
stand q moderate decline is strength
ened. With this there is usually COZ
siderable "shorting' Of the market b
/ professionals who take the warning
seriously enough to base expectations q
! decline upon them, and this make
manipulative opportunity for the bull
who bid up stocks later On to make tn
short interest cover, and SO new hig
levels are reached. Many market il
fuence Of this sort works out backwar
in the final showing.
, A New York concern which propose