The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1906-12-07
Cost of Material and Labor
Balks Enterprise.
SAYS HENRY CLEW'S LETTER
Stock Market Is More or Less Inact.
i've; Important Demands to Be
Made for Money.
Especial to The Free Press.1

New York, Dec lowing to Thanks
giving holidays and the approaching OPP
ening of congress, the stock market has
been more or less inactive. President
Roosevelt's coming message will be
awaited with unusual interest in order to
see how far it supports some of the So
called radical tendencies of the day; and
the disposition of congress also upon such
issues will be important to ascertain.
Fortunately, the coming session will be
short one, and probably unproductive
of important new legislation; but dis
cussion may be active and significant
owing to developments in public opinion
shown in the recent election.
Money market conditions improved
somewhat. Funds have been returning
more freely from the interior and bank
officials continue to follow conservative
policy in the making of loans. A dis
tinct improvement has also taken place
in the foreign money markets, both the
Bank of England and the Bank of Ger
many have been able to strengthen their
position, the situation has been further
relieved by the willingness of the Bank
OF France to release portion of its
gold. December dividend disbursements
were large, amounting to over $75,00O,-
900, and caused slightly increased ten
sion; but until preparations for January
disbursements are in order, the local
money market ought to be free from any
serious stringency, although firm rates
are to be anticipated during the interval.
Around the first of January considerable
stringency may be anticipated. In the
middle of that month, however, funds
withdrawn for dividend and interest pur-
poses will have returned to the banks
and the influx of crop money from the in
terror should also serve to improve the
local monetary situation. Unless, how
ever, we are much mistaken, there will
be a very active demand for money dur
ing the winter and spring months. Bust
ness continues to be very active, and
owing to high prices much larger
amounts of currency are needed to per-
form a given service than in times of
lower prices. The spirit of extrava-
gance is abroad, and the masses are saw
ing less and spending more than in Or
binary times. In consequence larger
quantities of cash on their persons than
usual, and this alone is quite an element
in the monetary scarcity. Concerning
the future of the money market, impor
tant demands are sure to be made during
the early part of 1907. A number of
our large corporations have been knock.
ing at their. bank doors for months to
little purpose. In some cases they have
secured temporary accommodation, but
demands for improvements and extern
sions on both railroads and industrial
plants are urgent and during the next
few months there will be new security
issues easily amounting to several humid
red millions. This amount added to the
enormous new creations of the past two
years is anything but bull argument,
although the interests committed to
such operations will be undoubtedly OBJ.
liged to give the market all the support
that they may be able. When April
settlements in 1907 stringent money
rates will be more in evidence than u.s.
ual
General outside conditions continue
satisfactory, and no reactionary signs
of Importance are yet visible. Confidence
is generally strong, although in many
respects conditions are SO abnormal as
to induce decided spirit of caution.
Advance i'll wages granted by railroads
and a number of large industrial con-
Germs are exceedingly gratifying to en-
ployes, and perfectly satisfactory to en-
|ployers as long as present conditions
last; but the high cost of labor and ma
terial of all kinds is exercising grow
ing restraint upon new enterprise and
more or less uneasiness regarding the
future. The immediate outlook, how
ever, is for continued activity, and
should we be favored by still another
good harvest the year 1907 may prove
as satisfactory a one as the year about
to expire. A poor harvest, however, in
1907 would surely bring reaction. The
annual report of Secretary Wilson of
the department of agriculture shows how
important an element the farmer is. For
the current year he estimates the value
OF farm products in the United States
at $6,794 100000, which is $4S5 900 900
greater than year ago. This gain was
made in spite of a drop of $4O,OOO,OOO in
cereal crops. As the latter showed a
gain of l20,000,OO0 bushels in quantity,
the decline in value was of course due
to lower prevailing market prices. The
increase in the total value of farm pro.