The San Francisco call., 1899-10-03
BARLEY
Ne7u York Money Market.
INDICATIONS THAT IT IS WORKING
AROUND TO A BETTER CONDITION.

TCATTO%S THAT IT Is WORKING
AROUND TO A BETTER CONDITION.
The circular OF Henry Clews says: The po-
sition df the market, in respect to certain ad-
verre factors shows tendency toward I'M
proyement. Tie recovery of two and q half
millions IN the surplus reserves OF the banks,
in spite Of stiu free shipments of currency 10
the interior and excess of S3.55o,oo0 in re-
ceipts over payments at the Suh-IreaSury Tor
the week is a hopeful symptom. 1t shows that
the banks have got the situation under control
and without any violence to their Nall-stTeet
customers beyond sharp discrimination
against certain Industrial collaterals- Also, the
tone of the London market is more settled,
though there is no abatement in the chances for
war with the Beers which is an Indication that
the warlIke contingencies have been already
largely discounted there, leaving SO much less
disturbance 90 arise on the actual outbreak OF
hostilites. London, Paris and Berlin are keep
ing a sharp eye on the maintenance Of their
stocks OF gold and may be expected to do all
in their power to prevent shipments TO this
country. And yet our exports are 50 large that
the foreign banks must calculate upon having
TO ship the metal TO New York in free volume
at 10 distant day. With a steady increase in
the supply of grain and cotton bills and the
current great disparity in money rates between
New York and London, II IS not impossible
that a. few days may bring the rate for ster-
ling exchange TO figures that VIII admit OF our
importing gold. This need not necessarily be
an occasion OF alarm TO London. Within the
that d large debtor balance 10 the United
States. may be attended with an absence of i'm
ports Of. gold 10 this coutry. II is not likely
that our banks would care to be flooded with
foreign supplies of the metal. Their chief i'm
mediate concern is to see the present stringency
. relieved through the strengthening of their alb
normally low reserves. As above shown, they
are already gaining control over that element in
their position; and, IN view Of the unusally
large stocks OF money in the Interior it would
not be surprising IL the retiuX of currency from
the West set in earlier than usual-the more
60 because the Western purchases of merchan-
disc at the East have this season exceeded all
precedent. Under these circumstances il is not
inconCeivabe that moderate importation of
gOld-say $l5 600, ,0v0-mlght be regarded by the
metropolitan banks as better serving their in
terests than a larger volume. With the re
turn Of. say, $780, 600 or currency from the
interior and the receipt Of 49, 600 Of gold
from Europe, the reserves would be restored
10 a condition compatible with steady ease, and
their interests would be better served by ad-
Nancing against foreign exchange and permit
ting gold 70 remain among our European Gus
TONERS than by encouraging the shipment Of the
metal hither and. forcing strngency abroad al
the cost of cripplng purchases of our products
and forcing an unnatural return Of our securi-
ties, These factors suggest a probability that
we are approaching the end Of acute strngencN
in the money market and show that the pro.
cess Of recovery is likely TO prove d steady anl
one"