The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-09
BANKERS NOT SCARED
BY THE MESSAGE
President Roosevelt Said Nothing
Alarming Tight Call
Loan Market.
Special to The journal.

New York, Dec. 9.-President Roose-
that Wall street expected and people
down here breathed much easier after
they had digested the document. Of
course, some unfavorable things We're
expected, but most of them had been
discounted. Therefore, it seems more
than probale that from the present out
look the street will be fairly free from
Washington scares during the winter.
The big bankers rejoice in the condition
of the money market, because they say
it puts the president under bonds to-
keep the peace if he wants to sell any
Panama bonds, of which a big issue is
contemplated.
The moderation of the remarks rela-
tive to corporation control and the con-
demnation of government ownership Of
railroads did not suggest any desire of
the president to disturb unnecessarily
the confidence upon which the prevail
ing prosperity is based, so that stock
market circles were on the whole in
clined to feel satisfied. But the money.
situation has elements that even the;
most optimistically inclined bankers do
not like. The report that the interstate
commerce commission. is about to start
cific roads, with view to determining
the legality of the alleged combination
under the antitrust law, had a more
or; less disturbing effect upon Union
and Southern Pacific.
The situation is so big with posi-
bilities of higher pieces that the best
authorities on the stock market were
advising the purchase of stocks even
in the face Of high money. It is well
SJnI hot h.
manipulated. Not more than per cent
of the call rate can be justified. Any
thing above that is due entirely to- the
calling Of loans from little men in or
der to furnish per cent money to big
men. The instant the insiders get ready
to make an active market the rate to
the little. men will fall suddenly. There
is suspicion that the Nipissing affair
was deliberately planned movement
to terrify the public on the curb and
drive them into the stock market. If
1t really was, the game was overplayed,
for it hurt the inside market more
than 1t hurt mining stocks. It has raised
q suspicion that support may be sud
denly withdrawn from other issues than
Nipissing. In the present state Of the
public mind the vicious attack on the
curb market only convinces the lambs
that it must be safer than the stock
exchange, or the bankers involved in
the Nipissing affair would not be so
anxious to keep the public out of it.
The money market has unquestion-
ably been manipulated to force Secre-
tary Shaw to- throw more funds into
Wall street, but the secretary obdu-
rately refuses, and has now put the
onus on congress by recommending GER
tain legislation for relief. When money
on call jumped to 20 per cent or more
many bankers and brokers kindly adj
vlsed their customers to drop a part
OF their, holdings and, of course, mum
bers OF them did SO rather than be
Of an increase in the New York Central
quarterly dividends to ~ per cent,
raising the annual rate from 5 to 6 per
cent, was entirely without effect. Even
New York Central did not go up, but
It, was very heavy under lieuidating
sales with the rest Of the market. The
news had been fully discounted in the
previous rise Of this stock.
+ Great Northern beneficiary certif-
Gates showed the difference between
anticipation and realization, developing
marked mark weakness, tho subsequently re.
/ covering part Of their loss.
Thinking circles may well doubt the
advantage to Wall street Of railroad
magnates also interested in speculation
having at their. disposition such large
cash assets as the Union Pacific showed
in it's report-$57 900 OO0-of which
/ $4,000, 900 was out on call, Moreover.
thru the sale Of Hill securities since
June 30 it is estimated that the amount
has been increased to nearly $1OO,OOO,-
QUO, a large portion Of which, however,
has doubtless been employed in carry
ing Baltimore & Ohio and other stocks