The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-10
NEED FOR CONSERVATIVES

FOR CONSERVATISM
All comment bearing upon the bust
ness situation in the United States now
takes for it's first consideration the
probable effect upon our foreign COM
merce Of the disclosures in the packing
industry. There is a world of criti-
cism heard. Not the least doubt exists
that the effect will be bad; indeed, 1t is
already being felt. At home it is only
a matter Of getting over the antipathy
caused by the sensational reports. The
thing will wear itself out before long,
for not only do the people understand
that the practices complained of were
not 80 general as might at first be sup
posed, but remedies are being applied
and there is every promise that in a
short time no cause for complaint
against the industry will remain. Do
nestle demand for meats will not be
affected for long. = - -
. In foreign markets 1t is different, for
there are many in Europe who look
with jealousy upon the rich trade held
by America and are interested COM
mercially or politically in spreading
feeling Of antagonisnn. That conditions
will be exaggerated abroad and the
worst possible Interpretation put upon
every phase of. the report of the investi-
eating committee is to be expected.
The United Kingdom imports in a
year; packing house products to the
value of about 1928, O00,0OO:| American
packers sell about $95,O0o,Ooo Of the
total. Germany imports $42,0o0,000
worth or over, and America gets $685.
100000 Of It. The United Kingdom
buys over 40 per cent Of her packing
house food products from our country,
and Germany nearly So per cent. We
sell $16,O00,00O worth to the Neither
lands and quantities running in value
from 100000 down to $4,000 to
Belgium, Switzerland, Austria Hungary,
Spain, Italy, Russia and Norway. Some
countries will do no business with US,
but generally speaking American prod
ucts are to be found everywhere in
Europe and the total is immense and
is: an important factor in our foreign
trade. ~ '+if",~ '.S"< .'.:E#
| That anything affecting this great
business adversely should arise, is most
unfortunate: Apparently the packers
have brought 1t upon themselves. It
is far better, however, that any loss be
sustained than that the loose practices
should have. been permitted to continue
The outlook in other directions 3is
assuring, except for q less favorable
turn in the crop situation, which If
causing. some uneasiness III the grain
trade. The season Is backward. June
came in promisingly; but the cloudy
skies and uncertain weather ri that
marked the month . Of May soon fol.
lowed and In the northwest there III
some; complaint. The Southwest HAS
another turn Of dry weather Rain re-
ieved the drought that made the out
look 80 UNCERTAIN duriHg May, But some
parts Of the winter wheat states are
! again sending in news Of dry weather
and the need Of rain!a On Monday The
government will. Issue q report giving
| The, condition Of the winter wheat and
the spring wheat and an estimate OF
the. acreage sown to 'spring wheat
Pending receipt Of this there is dispo
sition to 70 slow, but state reports OF
the, crops received thru this week make
decline in general condition for wheat
a reasonable expectation. A turn 70,
the better; IN the weather would put al
end to the, anxiety. All grain prices
have advanced materially during tht
week, but due more to fear for thu
crops and to .anticipatory buying thar
to any actual deterioration, and there
is still every reasortato believe that tht
country will have bountiful harvests il
the fall. 81 >.-z.@ - s:" : ~.~..~
Mr., Vanderlip, former assistant SEQ
rotary Of the treasury, now q New
York banker, disappointed the bulls il
stocks in his speech in Chicago yester
day, for it was marked by conserva
tism and lent no encouragement to ex
pect an advance. The country, MI
Vanderlip believes, is in splendid con
dition, but he deprecates over-specula
ton and fails to see wherein money i
going to be 50 plentiful, or rates s.
easy this fall, as TO encourage bull
stock market. Values, he believes, vii
be maintained, but the San Francisc
losses are too important to be over
looked as an influence for moderation
Mr.. Vanderlip makes the intimatiol
that the insurance companies generall
have not yet marketed their holding
of securities, that it lis necessary 70
them to, sell in order to pay up. 1hi
will be surprising to many stock trad
ers who have. considered that one 'da1
ger out Of the way. >:s.s< ''>'>' H.
. IF it be true that any large holding
| of stocks by the insurance companie
are yet to. be hquidated it will be a
argument against q bull market, eve
, tho it affect the actual value or tn
! earning power Of good stocks not at al