The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-04-08
SPECULATIVE MARKETS

est, the speculative center IS showing
the effect OF the coal strike. 1t Would
seem that stocks ought to do better, OF
att least hold their own, for conditions
the country over are SO nlghly FAVOR
able, that, were it not for the strike
there would be little OF Importance
upon the adverse side, in general bust
ness. Thirty per cent call money was
recorded on Friday last, but while
spring demand from the interior and
|oJher legitimate trade requirement &C
count in part for the high rates, the in,
terest IN the money supply situation IS
principally local to wall street, the
country outside finding sufficient in
circulation to do business on.
April dividend and interest disburse
menus should work around into general
circulation soon, and it is believed that
next week will see decline in New
York rates with money more plentiful.
Some rumor is heard Of an importation
of gold. Even tho but small guam
tity came across it would have senti-
mental effect.
With the strike it is different. Its
| influence is general and all comment
upon the favorable conditions and the
splendid outlook must be qualified by
allowance for the very serious indus
trial setback likely to follow a long
continued fight and the blocking Of the
| channels of fuel distribution. That the
strike will be broken shortly Wall
street processes to believe. The wish,
perhaps, is father to the thought. The
arguments are that the mine operators
are well prepared, having anticipated
/ trouble, that coal stocks are large, that
/ the men are not so well organized as in
. the last strike, and that in the event
! Of situation threatening to the gen.
] eral prosperity, governmental interfer'
1 ence will follow.
These are comforting thoughts to the
bulls. They do not serve, however, tc
i bring in buyers. Investment business
4 is light because SO much money is &C
lively employed and speculation is light
because Of the uncertainty. Settle
{ ment of the strike would no doubt BIZ
the signal for the rallying of the bulls
The crops are coming along splendidly
and but for the rise Of the labor trouble
a bull campaign based upon the goo6
tonnage prospects represented by the
high condition Of the winter wheat
! would probably be getting under way
Z by this time.
& 1T is interesting to note that many Of
the low priced issues that drew in buy
ers "a year ago are actually selling low
er now than at that time. No elias:
of stocks has been so disappointing
i to holders as those Of railroad ane
4 other companies not paying dividends
but presumably due for a. share of thu
good things later on. The country ha
/ forged ahead, but values in these is
sues, except in some few instances, hav
not kept pace. It, is the hope Of tn
! holders that when next bull marke
4 gets under way it win be big enough
and broad enough to carry up thes
moribund non dividend stocks with tn
Others
i The wheat market presents situa
ton not unlike that in stocks-lack o
speculative interest and fear of late
instability. There are firm prices TO
cash wheat in nearly every market, an
$ Winnipeg, ordinarily well under Min
!, neapolis, and 8 cents under at one tim
on the present crop, now holds her or
lions 1c to 114c above. The Europea
, markets are on a price basis that woul
warrant pronouncing them in line fo
, export, business, but there is little e,
1port trade. Everyone in the trad
in short, is wondering how the Ma
! ! wheat option will act as delivery da
) approaches. When there is goo
/ weather and good reports are comm
Dl from the new crops, and there is plent
= of old wheat in the visible suppl,
e holders, of May who do not want
q take delivery Of the wheat usually Sc
Z it out. This is liquidation, and it
S liquidation Of May -four buye
J as well as grain traders fear. 1t is n,
81 generally contended that wheat is tt
8 high legitimately. Indeed, it is pro
!. ably close to, if not upon, commerce
s basis. But buyers are holding off
f hope of getting in cheaper. Meanwhi
: there is, some doubt as to how mut
wheat is held by spectators who W!
: lquidate, and as the elevator situate
i is healthy, it may be that no such ge
8 eral selling out as May approaches m;
s. be seen, as is generally expected, al
It that buyers who look for the go,
v weather and growing crops to for
$ wheat below legitimate commerce
q level may not find it working out tn
+ way at delivery day.
7. STOCK EYGHANGE SEATS