Arizona republican., 1898-09-22
MORE BUOY.ANI.
The Money Situation Being
 6etfer Understood.
Ar OffiCal Statement Of Exports and Imports for fhe EigHt MOnf,.S.

! New York, Sept 21.-The past week i has developed a more buoyant feeling in Wall street circles The money sit nation, which had encouraged the re- cent selling of socks, is becoming better understood, snd the expectation of s,ringency has virtually disappear ed. This obstacle being removed there was nothing to prevent a general reaction towards better conditions The bsars had succeeded in breaking prices 1 to level Of comparative cheapness; 1 the market was freely over sold: and { there were substantial operators ready to take in important lines of stocks when they wera satisfied that the bot tom of values had bsan touched The general drift of events during the week has tended to waIn the bears to cover and the bulls to buy. Sterling ex- charge has fallen to the gold import ing point, and some considerable en- agreements have already baen made fer shipping the metal to this port There has also been some easing in the rates for money, consequent upon offerings from out-of-tcWn sources, and it has been accepted as a good symptom that the new bonds are being taken up more rapidly. Last Thursday the treasury placed S6,000,000 of cash On deposit with city banks, against security of bond aliot1aents. Also. the monthly official statement Of foreign trade skowsd tha. our excess of exports over imports continues with but little abate- meut from the extraordinary propor- lions Of several months past This succession of encouraging even.s has changed the tone Of business at the stccll exchange and encouraged buying ana at the moment the indications point to a prolonged continuation Of activity.
 Tle money market has vergsd upon a somewhat critical condition, which had not been generally anticipated. At the beginning Of July. the Associated Banks held about S25O 000 600 of specie and legal tenders, and the surplus re- serve stood at S51, ,a0O, ,000. This extra ordinary accumulation of lawful mon ey was regarded IS placing the banks in an unusually strong position for meeting the autumn dsAlaad for inter l0r crop movements and the eXpecta- tioA Of an unusual plethora of lceaable funds until the end of the year was sensral. The local stock ot money had never been equalled but once, namely, in February, 1854. when we were in the midst Of the great reaction from the liquidating process conse- quelt upon the panic Of 1S93 Under such conditions, few anticipated that by the middle Of September the New YCril banks would have their atten- tiOn attracted to the condition Of their reserves; and yet such is the fact Tflsir stock Of lawful money has fallen from 250 millions on July 2d to 190 millions on September 9th, and their surplus reserves from 61ia millions to seven millions. This decrease is in only 9 { mall degree due to the usual fall ship nents Of money 10 the interior; for | his year they have so far been almost | lorlinal, amounting, up to last week. c not mere than three or four mil ions The explanation of the position
 $ to De found almost entirely in our war finances, and more especially in the payments on account os the S200,- l DOG 000 loan. The payments already made to the treasury on this operation mount to about S1G0 900. .0GQ, and con- siderably more than half that sum has Deen temporarily advanced by our lo- cal banks to institutions in the interior for making these settlements. This has immensely swelled the bank loans, but l. must be remembered, as an off set against that factor, that the banks are free to call upon their interior cor respondents at any moment for the liquidation of these advances. The new outstanding advances or this ac- iccunt are understood to present <. very large aggregate; but the larger it is The larger their ability to accommo- date local wants by calling in these IoutsiGe loans; and this factor gives an ample security against the present sit lIasi0n running into anything like a troublesome stringency. These facts ireally constitute a strong situation for the local banks: for if their reserves are comparatively low, they have the means of amply replenishing them prolnpIy in tht event Of need. It may suit the convenience of the interior banks to employ at higher rate os in- | .ercst the funds rhey have thus pro- cured a. the lower metropolitan rates; but they are amply able to liquidate the