The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-09


~ from the indlsuapo,,.
me extension Of the NJ h al
purchases by secre,sr, y 81. I
continued advance q n. 81
land discount rate are Ind,.',,. !
pressure for gold is sun ss..' 's N
situation is puzzlins ths ss.s asl
ties' who had 1t all settled M
was here to stay. They :.
stand how a stringency - "a ~ =
time Bedstreet's saw. !, ~ hx
movements: " ~
In the close connect,., I,
own and the London mon. a c'sskl
advance in the Bank q ~ ,ttst
last Thursday to 6 per o .us'ali nj
companying hardening 4, ~. ~
IN the London open mark. ~ N %
Iuy factors OF considerable ~, ~ ~
determining the action I, 'aposl
exchange rates on this s,da slsa
ate cause of the step iu.s ~ ~
directors Of the Bank Of En, ~.
rent The loss OF over si im u
specie holdings and the dec, ,'s
600 in its surplus BRING n. =
down to surplus Of sboas snsS
which is manifestly inadsc,.,.. - !!
OF the demands likely to rssn, S
January payments throushnrss NV y ~
ain. combined with the , e.Sss va
ping specie to various conr,sss 4
addition to this. supplying IN =
ments of the British goyer ~ ~
nection with the Boer war ~
stiffening Of our own eYcb.s.
this week created for 4 ams
impression that the RAM
might seek to draw gold from 4 h q
Oh the ocean in order to meet i, "
ments. ss W
This is the Characteristic a Z.
standard, that a demand Tor ~, !!
country makes demand eyerr...
the gold standard exists. M, ,m'''
gold is limited and the artlna,l Y
for it is increased by ever ii,
the extension OF the gold stana,n 4
Wall street people who have 4,
demand for the gold STANDARD {
country realize this fact. M, 4
admit 1t in words, but they sdnI
their stock dealing. In bis lsl,s
week Henry Clews says.
1.-The advance in the Bank I, -.
rate, of course, means that no oi.s
be expected in that quarter IN n
of gold imports; especially xsIl.
Transvaal war shows no sim !, i,
preaching end. Considerable Ion
been entertained that the return Il
rency from the interior would br4
supply of loanable funds In M
nearer to normal conditions. MI
not safe TO place too much relia.s
.hese anticipations. Funds ars nj,
turning, but less freely than e,ss
the great activity Of trade and ia,I
everywhere retarding the moyemeut
Although the bank reserves are I'D
IN assuring rate of recovery and
is no expectation of any return Of n
;tringency, there is yet an indiimd
o venture upon large speculative "a
ions in dependence upon any rs,l
ease in money. The strirsl
# the last three months has been h
'ere and persistent and has caused 4
sweeping liquidations In the stock M
hat those influences baye made
operators unwilling to take anythIts
granted as to future ease In Wall ~
oans."
Under these conditions It 8 ttlsi
N increase OF National bank cirtsn
S what is needed. Mr.. Clews. yN n
ommon Wall street sentiment, MI
he trouble comes from business sts
;hich calls for currency and u "
,nce of sufficient National nms y
he banks are Obliged TO pay ~
lawful money constituting tief
erve funds. e., gold and greeis
lie says:
This reduction of the reserves tal
he banks to reduce their loans "
cunts; and in that way the credits
re transacted through the use q Z
nd without money are snaile, -
vitality contracted. 1t is exactly y
pint that the crushing stringeas
tie months has risen; and II y
nat this position is created ana eaM
Y infiexible law that CLOUDS inc ml'
| the money market with an uncsn
lore or less paralyzing. Under ~
Ike this, there is no way OF essaE
state of chronic exposure 70 pauA
ept through system OF BANK nus
'hich will make 1t to the inlelsss
anks to put out their noIes WV
ressure OF the retail demand ~ =
nder such conditions. the relM
,uld be satisfied without trenea'Ps
le lawful money reserves.
~
This is n beautiful theory, but y
oks two important facts. one . y
roposed bill provides for tne wv. ";
ON circulation of ss4s,ooo,o'e q
oney" from which reserves may 4 n,
the outset. The banks woula 4
ost to treble their circuIa1'uTrA ~ ! e
it'll to offset this condition.
that when the pinch come ..,s
ational bank notes that are I, WV, XVII
Id, And how will the gold y ~ y 4
list now it is being taken ~ so,dl.
the National bank issues e. ~ Nv ~
ere will be a dollar OF oo 'anusysiilh
the treasury, and made una' %ol1r
lveItible assets. for ever AZ
ational bank notes that ~ IN 81
cad of relieving the situation , W
ould make it much more aAns