Arizona republican., 1897-09-30
A WESTERN JOURNEY
The Money of the Country Takes
 a Trip to the Interior
FOR THE MOVEMENT OF CROPS
In Consequence the stock
 Market Is Disturbed.
The Derangement Is Only Tempo rary and Prices of stocks VIII Likely Be High CT Than Ever On the Return or Money.


 New York, Sept. 29.-(Speclal)- my last advices I called attention to certain dangers connected with the speculatf0e conditions of the stock market, Especially to the large eNpan- sion of purchases and the undue fore ing up of prices arising from the use of unrealized profits as basis of margins. The subsequent course Of operations has proved that the warn ing was notsHntimely and that it has not been unheeded. Large lenders Of money, and notably certain banks which lend freely on stock enchange securities, have had their eyes open and taken means for inducing con spicuous operators, who were carrying threateningly large lines of stocks, to reduce their holdings to more conser- vative limits.
 This intervention was wise and has had the effect of producing a healthier distribution of securities. Apart from the fact that the large outflow of money to the interior, with the ap- parent certainty of further large shipments, which suggested the pos sibility of coming stringency in the money market-it was plainly out of the question for large tenders to ad vance without stint to q few bold operators who were carrying stocks to an overloaded extent in an effort to produce a sudden and unreasonable imitation in prices, which they had no means of sustaining in the event of adverse conditions appearing. The banks have been losing $5,000000 a week from their reserves in satisfy ing the wants of the interior and. in view of the large receipts of grain and other farm products, the outflow may easily be continued at about that rate for some weeks to come The present amouft of the bank reserves. though liberal as compafs4~ with the saEe date of former years. is suggestive Of conservatism in loans; and, for that reason, it is equally suggestive of caution on the part of operators against overlooking themselves with stocks.
 In years of prosperous harvests, there is always an active speculative buying of stocks so soon as the har- vest is assured. At the same time, there is also an unusual demand upon the city banks for currency to move the crops. A point is thus reached in the early fall, at which there comes conflict between the money demand from the interior and the demand for loans from the stock exchange inter- est. The wants of the former class must have the preference; and almost invariably the latter class have to contract their loans at the cost of a spasm in the stock market As usual this rule is now being disregarded by stock operators; and the experience Of the past week has been reminder or the penalty of the lack of circum- spectlon. The period at which Wall street may hope to reap the full fruits of an abundant harvest is when mon ey begins to flow back from the in- terior; which, probably, will not cc- cur this year until about the end of October.
 The action of the banks has been timed with much prudence and con- sideration- Had it come at a later stage, the overlooking by sang11inf operators would have reached worse eXcesses, the contraction of loan: would have been seized with violen conVulsion, with consequent heav7 losses and more or less shock to gen eral business. Taken in time, how ever, this regulatory handling ha been administered when operator were still able to accommodate them selves to it. The large holders hav been able to reduce their holding without creating any spasm or dis trust and, within three or four days the stock market has been readjustet upon more conservative basis witt disturbance of only a few points il prices. So little has confidence beer affected that, towards the end of tn week, quotations have in a large meas ure recovered. As the net result. w nave more prudent and conseryativ position of speculation. Margins hay been strengthened, holdings have bee better distributed, and operators hay better understanding as to wha dealers will expect in the way of mar gins. All this may mean a tamin of the excessive enthusiasm whic has carried the market off itc foo for the last three months; and it wi at least have a tendency to keep af fairs in safer shape until the retur of currency from the interior re moves the possibility of monetar pressure. In the meantime, encoul az lent may be taken from the fae