The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-11-30
Money Market is the Main
Thought Now.
HIGH RATES FOR THE CASH
Much Caution is Exhibited in General
Business Circles: Labor is
Sc,rce; Wages High.
BY HENRY CLEWS

New York. Nov. 2G.-The money mar
ket is still the chief subject of concern
in Wall street, and is likely to so con
tinue for several weeks to come. Both
call and time money have been ruling
at very high rates and no material i'm
provement is expected until January
next. Bank reserves usually run down
during the last six weeks of the year,
and it remains to be seen whether this
movement will be repeated as usual.
The high rates for money last week
attracted considerable sums for the in
terror. so that this week reserves should
show some improvement, unless de-
rlands from other sources have offset
this influx from the west. An easier
state of affairs prevails in the foreign
markets, and there is less talk of fur
Their advance in the Bank of England
rate; better feeling having followed
the action of the Bank of France since
Il portion of its gold went to London
where the pressure was keenest. Amer
lean credit in London has not suffered
by recent events; and, while there has
been some curtaiment of our Obliga-
tions. there has also been little diff
loans Still the tension in the worlds
money market is almost universal, and
. periods of stringency may be expected
here before rates tend permanently
downward.
Conditions in the stock market are
favorable for moderate fluctuations in
conditions may be, it should not be for
gotten that stocks are still largely con-
centrated in very strong hands. The
large moneyed interests accumulated
heavy lines of stocks during 1908 for
the purpose of checking the downward
movement. The bulk of these stocks
have been steadily held and in many
eases show tremendous profits; their
holders have not, however, thus far real
lied to any great extent; the favorable
conditions of business and the unusual
prosperity attending the railroads hav-
inc induced them to hold on with UNI
usual tenacity, in spite of conditions in
the money market and the fact that
prices were already unusually high. 1t
is not probable that these gentlemen
are unaware of the fact that in the long
run natural influences will have their
sway. For the time being, however, as
the chief holders of securities they re-
tain control of the situation and may
do so as long as nothing happens to dis
turb present equilibrium, or as long as
10 important interest succeeds in unload
ing. 1t is quite true that there has been
a quiet distribution of stocks of more or
less Importance, but it has been obvious
short lacal
that any unusual effort to sell precipi-
tated an undesirable decline and quickly
turned the current. A retrospect of the
market since last August will show
how comparatively narrow have been
the fluctuations and their see-saw char
acter. Until these big holders succeed
in distributing good share of their sur
plus. we are not likely to see any radi-
cal change in the market; and so far
as their power is concerned, it may be
used in the direction of higher prices,
although natural tendencies are in the
other direction.
In general business circles a great
deal of caution is exhibited. The de-
mand for nearly all kinds of merchan-
disc is active and supplies of the same
are generally much reduced. Values re-
main high with no prospects of recess
sion. 1t is this high plane of values,
however, that is forcing conservatism in
mercantile dealings; for the prudent
merchant does not care to be caught
with large stocks of goods on hand