The San Francisco call., 1899-10-09
GETTING AHEAD OF Cash

c ONE weeks ago it seen that the remarkable
activity in trade was drawing large sums from
- the banks into general commercial clrculation
but was thought that the condition merely tenn
porary. 1t IS now seen, however, that it is becoming
more pronounced and that there is a growing scarcity
OF the circulating medium. The stringency has been
most marked in England, and from time to time the
Bank OF England has advanced its rate OF discount III
order to prevent the outflow of gold to foreign
tries and especially America, and last week two ad-
vances were made, raising the from 81 to per
cent, which is very high. The stringency is also
severe in Germany as shown by the action OF the
Bank OF Germany in also raising its rate to per
cent These advances will probably check the exports
OF gold to the United States especially the Bank OF
France has also lost gold heavily OF late and taking
similar measures to keep the yellow coin at home.
OF course these conditions affect New York, where
money is high being wanted in large amounts
for speculation and legitimate trade. There is no
real stringency in New York in the three other
centers however in spite OF the high OF interest
some borrowers being compelled to pay IoGI5 per
cent while 8dIo per cent the easiest rates OBJ
ainable last week Many operators considered these
high rates altogether unnecessary and the result OF
manipulation, but it is admitted that per cent will
be the minimum rate for some weeks to come, as New
York is being heavily drawn upon for funds to move
the early winter months currency will return to New
York as it usually does when the crops begin to
move when the money market will naturally ease off
This at least is the expectation OF Wall street which
looks for quiet stock market until that time arrives
There is no stringency sufficiently severe however,
to cause any apprehension The Transvaa situation
is an important factor in the case, it is broadly
asserted in quarters that England needs the gold
mines there to recuperate her diminished supply OF
gold though English authorities pooh-poo the bare
idea OF such necessity
The fact remains however that in this country the
needs of a phenomenally active commerce both
domestic and foreign, are exceeding the immediate
supply OF currency and Congress will probably be
called upon to reinforce it in some manner When
business is rushing it has been for year two
large amounts OF money required to carry it on
hence as far as the money market is concerned
moderate falling off in the volume OF trade would no,
be unwelcome the moment But there are few signs
Of any decrease at present. True, the distrbutive
trade is reported quieter in sections, and some
States, notably California Indiana, New Hampshire
New Jersey and several of the Territories show
slightly increased liabilities in failures though the
country at large shows less failures than at this time
last year. the suspensions being remarkably small as
repeatedly remarked in this column The great
staples however continue active as ever and the
bank cearances at New York despite the interruptions
caused by the Dewey reception and the yacht race
are larger than before Thus, in spite of tight
money market at the oountry's financial center, the
business OF the nation continues heavier than ever
before known. And the gratifying feature OF it is
that it is apparently genuine business legitimate
demand for all sorts OF goods 1t is a curious condi-
tion, to say the least Generally, when money adj
vpnces and becomes somewhat scarce trade falls off
+ba &c p-;ca
commodities continue firm at the recent sharp ad-
vances and mills and factories are turning down
orders all over the country The demand for pro-
visions 50 sharp the West that the great packing
houses there are from a week to fortnight behind
in their orders; and it has been often observed that
when provisions active business is brisk all over
the land
The Mechanics Institute of this city is making