Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1906-05-14
HENRY CLEW'S LETTER.

A more hopeful feeling now pre-
walls in financial circles. This may
be attributed partly to improved
monetary conditions, and partly to the
fact that all known unfavorable cir
cumstances appear to have been dis
counted by the decline which cul-
minated a week ago and which re-
suited in a depreciation estimated at
nearly $1,000, 100000. After such a
prolonged and radical decline. re-
covery was perfectly natural. A
large short interest had been created,
and buying on this account not only
induced rally but satisfied, temper
arily at least, the bear operators who
had made very considerable profits.
The fact, too, that the market could
withstand such a series of shocks as
have been encountered during the
last few weeks, some of them of
rather violent nature, gave confidence
to the undertone of the market.
Liquidation has been very severe
and the technical situation consider
ably improved thereby. A year ago
it would have been impossible to have
made anybody believe that such
depreciation as has just been ex-
perienced could take place without
precipitating serious trouble, if not
actual panic. That the market has
wfthstood these extraordinary shocks
without a single failure of Importance
is remarkable testimony of general
financial strength and soundness.
Much of the rise this week has been
due to short covering Nevertheless,
it is proper to recognize the improved
q features in the situation. For months
past the key to the stock market has.
been held by the money market. The
enormous expansion of loans, out of
all proportion to the increase in hank
ing capital, and the extraordinary
creations of new capital either in the
form of stocks or bonds, placed a
strain upon the money market that
was both threatening and at times
alarming. Fortunately heed has Eeen
paid to these symptoms of OVERRIDING
and the Stock Exchange has already
experienced it's share of liquidation
or REIMBURSEMENT. When relief was
3-'
necessary it was obtained from
abroad, and the gold thus ordered
was made Immediately available for
credit purposes through the prompt
action of Secretary Shaw. 1t is quite
evident also that, if our needs de
manded further assistance from this
quarter, it could be obtained. The
European situation has. much i'm.
proved during the last few weeks
The Moroccan affair was settled for
good; the Russian revolution is pro
crossing on more peaceful lines, and
the French republic has demonstrated
to the world its stability and its
power to govern by vigorous suppress
sion of the threatened May Day dis
= turbances. Germany for the present
at least is not a disturbing element
for the reason that owing to her re
cent policy she Is isolated and has
lost the friendship of Russia, France
and England. Under such isolation
German ambitions are likely to BIZ
restrained, thus making for genera
peace. All of this is important tt
/, the New York stock market, mas
much as In case of need we should
be more free to borrow in 3Londor Of
Paris than if different conditions pre-
vailed 5:-s5$ ,5 < u: s.. z. &$2%z
In an interview with political cor
respondent of the Grand Forks Her
aid Governor ,sarles replies to til,
statements of Congressman Spaldin,
Il with regard to the business manage
nent of state affairs The governo
4, clearly shows the falsity Of many o
the statements circulated by ex-Con
#S ~ Z III iiS saiupaiSt
8 against the republican organization
The governor states what those desir
Ing To be fair admit to be true: tina
the state has been given clean, sount
business admins ations, that Their
has been no graft Of whatever sort
Il that All dera rtHents are managed Al
a private business should be con
Quoted, and that It II upon this racor1
that those cand idates having serye1
55s but one term are before the peopI'
Tor an Endorsement, Over agains
these facts the opposi tIen Gets nothfnl
bat a loud cry i gaInst the masculine.