The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-02-22
Important in the Monetary
Situation Says Clews
EXPORTS, JAN. $11O,0OO,OOO
President Roosevelt Has n, Distruc.
tive Purposes in His Reform
Movement.
From MONDAYS Daily.

rise Oh the Stock Exchange which began
last week made further moderate pro-
gress. On the previous drop a Consid-
cradle line of stock had been accumu-
lated by the strongest interests in the
Street, who took advantage of the first
opportunity to makret considerable
amounts of long stock at a profit. The
present recovery has been accompanied
by more or less speculative buying of
securities, giving the market more ac-
tive and stronger appearance. Influences
which have been chiefly responsible for
the recent trend of affairs were easier
money rates, gold imports, better un-
derstanding of the Presidents policy, and
the natural reaction following a pro-
longed and rather severe decline
AS to the monetary situation, that is
distinctly improved, owing, however,
more to the January liquidation than
to any abatement of demands on il
crease III bank reserves. The latter are
extremely low; lower in fact than for
many years at this season. Two sources
of relief are open for this difficulty;
either further contraction in credit,
which is probable, or further addition
to our stock of gold through gold i'm
ports. While the course of exchange
favors, our bankers are certain to be
bidders for gold which comes into the
open market at London. The Bank, of
England reserve is in splendid shape
the reserve being over so per cent--and
that institution is, therefore, not OBJ
lged to come into serious competition
with American buyers. At the same
time, there is a disposition on the other
side to discriminate somewhat against
American borrowers Oh the ground that
home interests should receive first at
tentiOn, and that American demands
though insistent and hitherto profitable
should be set aside. The fact. how
ever, that Americans have been willing to
pay high rates for credit has generally
been an inducement which English
bankers were not disposed to ignore.
American bankers are in position to
likely to enter into sharp competition
with the Bank of England; which, al
though it has shown it's control over
the international money markets, has
still to reckon with New York as a
powerful competitor. So far as gold i'm
ports are concerned, much depends upon
the immediate course of our foreign
trade. Merchandise imports have recent
ly been running very heavy, owing to
the great demand for all kinds of pro-
ducts and luxuries, and figures have
mounted higher than usual partly be-
cause of high prices. January figures
for merchandise imports are not yet
available, but details of exports are sug-
gestivc. The total exports from the
United States for the month were valued
at over $llO,OOO,OOO, compared with $780,
100000 the same month last year. This
was handsome gain of over $4,000
300. 1t should be noted, however, that
there were a heay decline in the exports
Of breadstuffs and meat products, and
that the gain in the net exports was
entirely due to the unusual increase of
s3l 100000 in cotton. The quantity of
cotton exported in January was fortu-
lately almost double the exports of last
year, the total value of that staple |
shipped during the month amounting to
nearly $7O,OOO,O00. Had it not been |
for the lower prices of cotton stimulat |
ng these exports, we should probably |
nave been forced into shipping gold in
order to settle our foreign indebtedness.
Financial circles have at last awaken |
ID to the fact that the President has no
destructive purposes whatever in his re-
,Orm movement. In fact, he is proving |
much more conservative than his enc
mics would have it appear. He is not |
lnxious for any further legislation dur
ng this session; and none could be ac-
for the time is too short for
intelligent and thorough discussion.
Such ideas as he has for reform are in
he line of public interest. They are not |
adverse to the proper conduct of cor
,Orate interests, nor are they retroac-
i've, as at one time was feared. This
of course, removes ground
or apprehension regarding the Presi
lent's intentions which existed in Wall
Street. Congress, which has accomplish
ID little legislation of value during the
present session, will very shortly adj
Ourn, the balance of time being taken
Up with appropriations and other rou-
inc business. The market will there
ore, now have breathing spell from
legislative attacks, although it should
Tot be overlooked that we are entering
nto a period of active discussion of
opics which are sure to be more or less
This cannot be avoided and
$ disturbance that is likely to grow
n intensity as the time for Presidential
nominations approaches.
A good deal of interest was created
II financial circles by Senator Aldrich's
currency Bill, which provides that the
secretary of the Treasury may issue
!old certificates in denominations of less
han $40 when the gold reserve falls be-
ow $lOO,OOO,00O. Also to issue United
states notes of small denominations
whenever silver certificates of that class
re insufficient to meet the public de-
nand. Another provision was the re-
noval of the injunction against deposit
NC in the banks receipts from customs
evenue; and still another, that bank
circulation may be retired to the amount
# $9,O00,0O0 per month, instead of 49,
100000. None of these provisions will
fleet at the present time any import
mt relief i'll the money market or the
redit situation, although the increase
n supply of small notes may be helpful
n retail transactions.
The repairs upon the German Luther