The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-01-08
Financial Letter
A~.oc,n,ea Pres. to The Evening Times,


panied by feeling of widespread pes
simsm caused splitting out of stocks
on the part of disappointed spectators
who had bought in the hope that prices
would work higher at the turn of the
year. This selling did not appear to
be particularly urgent at any time but
1t came in constant stream resulting
in steady falling away in quotations
and shaking rather severely the conf
dence in higher values that had been
expressed right along by some of the
most influential houses in the street.
Reading and the Hill stocks, Great
Northern and Northern Pacific were
the great sufferers and so far as the
general public could see there was no
plausible explanation for the weakness
in those stocks. Reading is prosper
GUS according to all it's recent state
ments and why it should go down so
rapidly is not clear. Disappointment
over the failure to increase the divi-
dend might account for some selling
but not far enough to make decline
OF more than five points in a day.
There is some talk in Wall street t.
the effect that the weakness of Read
ing and Great Northern has been due
more to raid dit ected against the
Morgan stocks than to any conditions
affecting the properties. What object
there could be just now in such raid
does not appear on the surface. Mr..
Morgan undoubtedly has not been
pleased with the money situation and
it is noteworthy that his banks APP
parently have been more anxious for
Secretary Shaw to give aid than have
the institutions controlled by the
Standard Oil party. But there is
nothing to show that the decline in
Reading is due to any move by power
full spectators against the Morgan
stock except in sentimental sense,
the heavy holdings of the Vanderbilt
lines and the Pennsylvania interests
in the property having changed its
status very much in this respect.
When the weakness on the Exchange
was at its worst there were persistent
rumors that several large commission
houses were about to fail. No such
failure developed but it was generally
understood that one firm and possibly
two had received assistance privately
to tide them over. All of the firms
mentioned in the rumors were know.
to have been heavily long of Reading
and the Hill stocks and undoubtedly
they were hit rather hard by the
slump.
Despite the lower quotations for
stocks, the extremely high rates for
call money and the pessimistic views
openly expressed by leading financiers,
notably Mr.. Rockefeller, Wall street
was disposed to greet the New Year
hopefully. Dividend disbursements
January LIST this year were the larg-
est in the history Of the country. Ii.
New York City alone the banks paid
out more than S200,000,OO0 and
throughout the country larger pay.
ments than ever before were the rule
This indication of prosperity with its
resultant enlargement of the peoples
buying power should sooner or later
aid in the relief of the stringent money
situation. AS soon as money becomes
easier. Il good rally in the stock
market is looked fer, but whether
the big bull movement so recently in
terrupted can be resumed is not nearly
as certain. That confidence has been
tempered by feeling that prosperity
may have been over-discounted with
the result that men are lessening their
holdings of stocks is unquestionable.
Who has brought as they sold does not
appear. Some shares have been taken
as they went down, by houses inter-
ested in supporting the issues. This
was the case with Reading, the Hill
shares in St. Paul The latter stock
was held pretty we'll and has shown
a fairly firm front to the depressing
influences.
Financial circles in New York open
ly express hopes that currency re-
form bill will be agreed upon soon
by congress. More than one authority
lays the responsibility for the present
lack of funds to an insufficient supply
Of currency to carry on business. The
more business expands, the great pros
perity extends itself. the more is the
need for the actual money-gold, bills
and silver-to carry it on and as trade
and mercantile pursuits draw for
funds. speculative circles loose them.
New York cannot hold money when
the rest of the country wants it. That
is shown conclusively every year at
crop moving time when, no matter how
attractive the stock market may look,
support is Withdrawn from it for the
legitimate needs OF the farming inter-
ests. And it is we'll that this is so for
such wholesome checks On speculA-
ton are necessary at times to prevent
too great an imitation OF the specu!a-
tive balloon.
Wheat and corn continue quiet here.
the stock market absorbing practical
ly all the attention of trades. The
old year closed with some pressure to
sell on belief that receipts are likely
to increase considerably in the near
future. Corn was affected sympathetic
ally by the weakness in wheat but the
declines were not large. In fact while
the bearish sentiment in wheat and
corn was rather pronounced, prices
moved sluggishly.
The cotton market awaits the gin
ners report to be issued January 9th.
The bears seem confident that this
statement will favor lower prices but
the bulls so far have held their own.
The market is extremely narrow and
the trading shows very little tendency