New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-11
CONDITIONS ~ WALL STREET.
THE MoNry SITUATION SOLID ONE HIGH
RATES orr or THE QUESTION.

THE MoNEy SITUATION a SOLID ONE HIGH
RATES orr or THE QUESTION
one ~ the peculiar features OF business IN tbs
Wall street district recently has been the attempt
on the psft Of thoso on the bear side to the
weekly bank statements weapon FOR ham
morlng down prices. The strength ~ Tho stock
market yesterday showed that efforts 10 create q
scare" haas. been futile. II was not SO long ago
thut the banks o; NG-York had superahundancc
40 money. and ns result the rates for loans were
extremely low. The issue Ok the new war bonds
worked t great chang n the situation and the
t.t,uruts on these securities 10 the Treasury at
Washington have amounted so far 20 about VIZ.
5000. This immense sum was taken out II the
usual channels ~ trade. and. hy reason Of the high
prices ~ bonds in d., open market. the banks
W.. no, al,Ie 'o buy them for the purpose Of de-
posting them 20 Washington security for the
ISSUE OF rurr'no,. One OF the direct results has
been the decreases ~ the reserves according 10 the
Clearing lIosse statements from the middle of July
10 the present time rom 100000 20 S9liSj. Ia
speaking Of this condition The Financial Chron-
lrle" says.
iusS fhi~ year age discl" cd l\ 10" statement that
me surplus rrscrv', OF our Clearing House lnstl,
ss.5--,o 20 slle.oo.O apaln-. surplus 90 the same
dttc in ls'l OF ''-.' 5000 ln the first place II is
Last Saturday were Joss than si5.D0Wo. the total
reserves were go, I'D. whereas in 1906 the total
actual cash Da.auc, septemh"f l. l>N. was sci
->-UN. against cash balance Of s,i3 i0l same
date Ot lst6 and go 2Na September !. 1893. finally.
the net favorable merchandise balance for the
seven months ending with August J. lNN was
t3iI.la2 Nfl; at the same DAY In lN~ 10 was only
SaU i1..o.a whereas iu 1893 the balance WAS I'M
favorable. the total excess Of imports being ~
80 25i. These figures show great strength az tho
mining the comp !rat'"lv unmportant fact that
the Treasury has for brief period deprived our
banks 0f considerable portion Of their surplus re-
-'rV"~. Nrrt high rates for money ai" Oui Of the
ht Cd
one 81 the ~st-postei men Ia the banking circles
Of the city said yesterday: Il consider the money
market one Of great Inherent strength. In the
nr.t place the United States Treasury Is In sple ndd
shape The gold reserve is large. and as matter
Of TACT there IS more money. by good deal. in
Uncle Sans Golfers than IS needed. The new bond
ISSUE took a big pile Of money out OF circulation
but IL went for q perfectly legitimate suppose and
VIII ma iis way back again into trade channels
NOR. quickly than many imagine" can money ~
I per cent Be- not high II B. really a low rate
When money gets hgh as % ana % per cent thon
IN might Doe time 20 'hOhcr' Inc Ntue FUSS that
has been made f. accounted for 10y the fact that
money h1- ur,n $50 cheap AT per cent that the
brokers tniuk lt dear ON th" slight r'ccnt'auNhnce
Ng1 d. tfr. Gag" ana his associates are taking
ever, action possible 20 give the country all the
currency IL needs. The interest OF The Government
fours has been ordered paid in advance and the
checks M, now being made out 10 be- mailed.
There 4. no doubt thai tie SKIES VIII also be taken
up The balance of trade with Europe Is 30 large
hat any time W. need money aN We VIII haN" 10
do lS 20 clu for 10. Should ia" occasion arise. gold
would boz brought into the United States rs 1t never
ma been before. The fact that not a single bank
rdc,r r the city Is Worrying Is the best proof that
the money situation is q solid one