The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-01-15
Financial Letter

New York, Jan. 15-The brave
front shown by the stock market after
the first of tho year when money he
came easier gave the trading every ap-
pearance of tho beginning of a good
;'ull moveiEc At. The upward trend
of prices met with check, however,
after few days and thea there ensued
the dullness usual af,e. prices have
b. en- marke,! IN to q pOill where the
public begins 10 lose icierest. MAN.
i.,u:ation for I; substantial bull mar
ket has been confidently expected just
as soon as the highness Of money re-
lakes, and it is the general belief in
Wall street that further efforts in this
direction will be made The truth is
that the powerful capitalists who con-
troll the country's great corporations
are loaded up with heavier lines of
stock than they want to carry, espec-
tally in view of the great number of
investigations and legal proceedings
affecting railroads and other
companies now pending. The
public also has been affect
ed by these same proceedings
and much of the hesitation to buy
stocks is probably due to nervousness
as to the possible effects of the re-
Violations being made in connection
with railroad consolidation and the So
called community of interest plans to
centre the control of various COM
panies in the hands of one set of men.
The enormous power shown to be had
by E. H. Hartman, while it was
known in general way, was, in its
detail, something of shock even to
Wall street circles. That Hartman
holds the voting power of more than
billion dollars worth of railroad
shares gives the small speculator.
with few thousand dollars at his
command. much food for thought.
While it is true that so far the Union
Pacific shareholders. small and large
alike. have profited handsomely under
the Hartman management there is
always the possibility that his alb
solute command of the great property
might at some time work to the dis
advantage Of the average shareholder.
These considerations, together with
the pessimistic utterances of one or
two great financiars, notably Mr..
Rockefeller, serve as checks to specu-
lation at time when railroad busi-
ness is remarkably good and all lines
of industry are prospecting. Officials
of the U. S. Steel corporations de-
clare they have orders booked far a.
head, and as the steel business has
came to be accepted as the barometer
of industrial trade generally, its -four
ishing condition is accepted asa very
hopeful sign.
The next fortnight ought to show
pretty definitely what the course Of
stock speculation is to be. II enough
buying power develops on the part
of the general public a continuance
of the bull manipulation may be looked
for, but the big operators are not
disposed to make any exertions in this
direction unless there is some en-
| couragement and assistance from the
outside. The money situation, while
much improved is still matter Of
some concern. The New York banks
at present have just about enough
tn oor nm h,,cf
In other words, their surplus over the
legal reserve requirements are prac-
tically nominal and there is nothing
to show that any large movement of
currency to this centre is likely in the
near future. Also, the drain from the
banks by the National Treasury has
not ceased. During the first eight
days this month, the treasury drew
nearly 100000 from the money mar
ket. If the drain continues at the
same rate for the whole month, it
would mean that the Treasury would
absorb and lock up about $4,000
600 cash. Should that prove to be
the case, the Secretary of the Treas
ury might find it expedient to postpone
the time for the depository banks to
return the $12,000,OO0 extra deposits
this month, as we'll as the other $780,
100000 that was to be returned after
Feb. 1. Mr.. Shaw, however, may do
nothing of the kind. He has shown
himself to be remarkably Independent
in his course on the money question
and the fact that he does not favor
releasing government funds merely to
aid speculation adds to the feeling of
caution as to the future of the loan
situation. Wall street received with
satisfaction the decision of the Court
Of Appeals which declares unconsti-
tutional the amendment to the tax
tutional the amendment to the tax
law of 1905. imposing a tax of two
cents on the transfer of each share of
stock, irrespective of it's face value.