New-York tribune., 1899-07-31
THE WEEK IN WALL STREET.

Arl There were developments of considerable I'M
nortance in the financial situation last week
The matter Of chief consideration was drop In
sterling exchange that carried rates so far below
the gold EXPORT point as effeCtually 10 dispose OF
o the question in the negative whether there
would be any further outgo OF gold Ihe rea-
son for the fall in exchange was the rapid accu-
mutation of grain bills in the market. and also
the appearance in liberal amounts of grain tut
ules As might have been expected. the conse-
ouence Of the decline in exchange was an easing
of money and more particularly call money, with
which n large part of the business the Stock
Exchange is conducted.
It has undeniably been the comparative stiff
ness in call money which finally developed some
strength in time money. that restrained the ad-
vance in securities. Prices have been appreciat-
ING SLOWLY during the summer, but nothing In
the nature Of a boom could work up. for money
was Offering in too moderate supply and rates
were not reasonable enough to permit II. II
was not that the country as a whole was snort
Of money but that money was tied up. In other
words there has been boarding to a considerable
extent.
There was so much talk Of probable scarcity
and tightness in money in the fall from the re-
ouirements for moving the crops that rather
elaborate preparations were made for such an
emergency Railroad companies. industrial and
commercial concerns and individuals, who had
abundant funds for current needs were infected
with feeling of uncertainty. and borrowed
money on time ito be in readiness for whatever
might happen" portion of the money was let
ont again on CALL but more actually locked
ND There is no telling how much money was
taken out Of its regular channels by this process
The National banks too, contributed 10 the
tension by retiring circulation in which they
had two purposes. one was TO reap the pront
on the bonds DEPOSITED in Washington against
their note emissions. for the bonds had greatly
enhanced In value. and the other was TO OBTAIN
more remuneratve employment for their money
which was an opportunity that the money mar
ket provided
The prospect is that instead of construction
In money this fall. there will be far more than
tho usual ease The banks in the districts where
the crops are grown have plenty of money, and
q is likely therefore that the drafts upon New
York in connection with the marketing OF
cereals and also cotton. will be small Banks
in the West and Northwest and even in the
Southwest have been liberal lenders Of money
I'm New-York and at other Eastern centres IN
the last thirty days. The truth Is, there mas
heen no shortage in money or stiffness in rates
except in the East, and especially in New-York
Now that II is made certain that there will be
contrary the next flow OF gold Will be IN TINS
direction one incentive to husband money is
removed It will soon become apparent that
the fall will pass without disturbance in
money. and. in short in a brief time the en-
tire scare over money Will have disappeared
Europe cannot keep out of debt to this country.
Its obligations inevitably Will run up to high
figure in the remainder of the year. 1t must
pay its adverse balance In gold or else porroW
the amount OF IT, in which case II Will be worse
of than ever for il Will have TO pay interest on
the accommodation. II the gold imports in the
fall amount TO S1OO000,000 as many think they
may II will mean so much money added TO the
country's stock. There will be another large
addition of gold from the mines OF the United
States and the Klondike region. Indeed gold
is already coming from the klondike in large
volume.
II may be we'll to recur to the effect of the
course of the Clearing House banks in charg-
ing for the collection of checks. 1t undoubtedly
has resulted in taking great deal or money
away from New-York. but this Is something
that promises TO right itself through the opera
tiOns Of the trust companies Most or the trust
companies have gone into the general banking
business and those which have not soon will.
They collect checks without charge. and they
allow interest balances both Of which the
banks may have to do to keep their customers.
The trust companies already have cut so deeply
into the business OF the banks that II practically
has come down TO the survival OF the httest.
The smaller downtown banks, as has before
been said, VIII probably be swallowed up by
the institutions with immense deposits and
loans. one by one control or the little uptown
banks is being secured by the large banks in the
Wall Street district. which use the first named
as branches. The whole tendency is toward
fewer banks and larger ones. Downtown at
least only big banks can stand the necessarily
heavy expenses and successfully cope with the
growing competition Of the trust companies
The fact that in Wall Street more than any
where else has the paucty In money been felt is
proved by the other fact that general business
throughout the country has not been restricted,
hut instead has greatly expanded. Money must
he had 10 carry. on business and II. OF course.
has been obtained without difficulty. Railroad
earnings tell a story without parallel or busi-
ness prosperity throughout the country. The
gross receipts OF the railroads Of the country in
Julv 50 far reported are ~ per cent greater
than In the corresponding period In lS9S. There
can be little doubt that the gross earnings or
ALI the roads in the country for the wear VIII
exceed those in 1893 by SJOOOO.OOO. The ratio
of gain in earnings Is increasing ahu propapy
will continue TO do so. The most remarkable ex-
hbit is made by the sO-called Granger ROADS
which show for the months earnings 80 per
cent larger than last year. The Central Western
and Transcontinental roads come next Inc
least favorable showing Is made by the Eastern
roads other than the trunk lines Ihe Dahk ex-
changes fully bear the inference that is 10 be
extracted from the railroad figures In the week
lust closed they 40 per cent greater IMAM
in the same week last year
The late reports to the crops nave Deeh an
that could be desired. There Will be bountlful
crop Of spring wheat and the discrepancy IN
winter wheat has already been more than made
ND by the coming forward OF old wheat from
farmers hands. The corn crop may exceed
that of 1896 which was the largest on record
The 1896 crop, according TO Agricultural Depart
ment figures was 2S3 S13.l65 bushels. Corn
exports are enormous and wheat exports. too.
are ahead Of last year. There is large foreign
90 t.rntn thar uiH