The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-11

Call Loan Rates Will Govern the
Price Trend in Wall
Street. g...
Epecial to The Journal.

Special to The Journal.
New York, Nov. 10.-The election
having passed, the depressing influence
In Wall street is still the money situa
ton, which has again taken on a more
stringent turn both here and abroad.
Fifteen per cent call money might be
explained away by the November dis
a shifting of the burden of loans from
Europe to this country. The firmer
tone to time money, however, is the
really significant feature, for it is here
that most of the borrowing is done
both for the mercantile community and
Wall street. With six months loans
strongly bid at 6 per cent, and funds
In demand over the end of the year as
high as 7 per cent, the outlook for spec
ulation is not reassuring.
Perhaps the most significant factor
Bank of England to build up its re-
serves, the proportion to liability the
past week being only 1851 per cent,
altho the so-called dead line is 40 per
cent. Because of the failure Of new
gold arrivals to restore the reserve,
there is talk Of another advance in the
bank rate to per cent, which would
be the highest at this season in any
year since 1873. Not alone the Bank
of England, but the Bank of France
and the Bank of Germany as well, are
in a weaker position.
Thus the French bank lost $685.
900 gold the past week, increasing its
loans $50,OOO,0OO, while the German
creasing $1O,0OO,OOO. AS compared with
a year ago the Bank of England has
reduced its gold holdings $l4,SOO,OO
the Bank of France $17,716,000, and
the Bank of Germany, counting in it's
silver, SIS, 57s,OOO. As in this country,
the simple explanation of this weak
ened position of reserves in the face
of large expansion in currency is the
worldwide activity in business, with
the incidental demands for financing
new projects and improvement plans.
In some conservative quarters, it is
argued that there will be no release in
the money situation until business re-
acts, which contingency cannot be
viewed with pleasure.
Unless there is fresh buying i'm
pulse from the outside public, an up
ward movement is problematical.
Market comment, as rule, is none too
optimistic in this regard, it being re-
allied that conditions more funda-
mental are holding the market in
check, which factors will not be re-
moved Tor some time to come. 1t may
be adduced that the public has over
come its Indifference to speculation, it
being madly engaged in gambling in
mining stocks, mostly of dubious
character, and that transference Of
these operations to the stock market
is among the probabilities. There is
every reason to believe, however, that
the larger interests realize the necas.
sity of keeping down loans so long as
the international situation is compli-
Gated, and that the banks will contrib
ute their mite toward holding bullish
enthusiasm in check,
Fortunately, cotton exports are in
creasing, and in consequence the sup
ply of cotton bills in the exchange
market is large and furnishes protec-
ton against high rates for sterling,
while, in addition to the influence ex-
erted by the movement of cotton, the
market also is favorably affected by