The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-09-26
OUR GROWING FINANCIAL POWER.

\ URING the past year frequent mention has
been made OF the rapidly growing importance
OF the United States as money power, instead
OF purely producing power as it has been for several
generations The transition was sharp and took place
before the best posted nancers of the country
definitely knew what going on. 1t suddenly
appeared one day that loaning large sums in
gold coin to German banks, and since then posi-
ton creditor instead of debtor nation is begin
ming to be acknowledged everywhere The latest tes-
timony to this effect appears in the weekly review of
R. G. Dun & Co.. which says:
Europe will have to consider possible American
needs for money much more anxiousy in the future
Doubtless there has been for many years feeling that
the continent could not be put off with promises
But the control OF this country money markets
IN the Old World is coming to be that OF master.
Our banks lend there heavily when it is the most
convenient market for them but they draw on Europe
whenever they money, and no longer have oooa-
sion to limit their drafts
SO it appears that money we'll as our navy is
asserting itself abroad The conquest, though peace
fu is not less effective and permanent If continue
this financial advance, who knows that we will not
be in position to dictate to other nations
whether they shall go war or not? The hypothesis
is nearly as far-fetched as it might seem at a
hasty glance. little further progression on our
present lines is quite likely place us where by Civ
ing or withdrawing support from expectant bel
hgerents, may frequently impel or prevent hos
Titles choose. II we become the greatest
producers of both food and money in the world we
thereby exercise predominating influence on both
the stomach and the pocket of the world and as
these are the principal organs of the body polite the
power that controls them controls the body polite
In other words, shall rule the world
This financial condition was the leading feature Of
10 1o-
strongly toward the United States that the Bank of
England forced to advance its rate of discount
from 21z per cent to per cent to check it But no
earthly power can check the law of supply and de-
mand AMI if we feed Europe has got to pay us for
It, and in one form another the gold will flow in
just the same 1t is doing so now.
The center of commercial activity continues in the
West and Northwest where the rush of business is
remarkable Indeed, we told that the East finds
II hard to realize how very active the West is though
the East itself is enjoying a satisfactory trade The
iron and steel trade leads all others in point of pros
perlty, as there is steel famine in Germany. and
GREAT Britain is IN our market for 10000 tons of
plates The domestic orders simply immense. and
the works crowded for months ahead The other
staples are unsettled Wool and cotton continue dull
but wheat again rising on account of better foreign
buying induced chiefly by poorer crop prospects in
Russia. This quickened demand has largely increased
the exports of wheat and -four from Atlantic ports
during the past week, and the wheat trade is now in
better shape than for some time back The bank
ciearngs OF the country continue rather unfayorable
showing decrease of 81 per cent last week from the
corresponding week last On the other hand the
failures were only 1872 against 237 for the same week
in 1907
On this coast conditions show pronounced i'm
provement for the week Primarily there was the ad-
vance IN wheat which carried with better prices for
most OF the minor cereals An advance in bay con-
tnued the Improvement along the same lines The
dried fruit trade which had been dull for some time
exhibited signs OF doing better, as the Eastern de-
mand slowly improved, giving increased tone 70
prices, which were already good The demand for
canned fruit, too, continued brisk at firm quotations
a diminished yield of grapes stimulated the ;no,;rv
Tor this important staple, and the week closed on
rising market Hops were also strong owing 70 re-
ported shortage of $4,000 bales in the worlds product
this year Government orders for provisions kent tb;s
market from stagnation In fact. while there wa. No
particular activity in any branch of local trade tb
conditions certainly showed visible Improvement