The times., 1899-09-10
The weekly statement of the New York
banks issued yesterday is as follows:

Loans decreased d-.......................G GUlG7OO
Deposits decreased II, ,S54, zoo
speeie decreased d---.-.----..----..... 100 200
Circulation increased 36s, 200
The surplus reserve of the week previous
was s., ,l9l $50, SO that the reductions dur
ing the past week have cut the surplus
down 10 s., ass, ,925. This is the smallest
surplus held by the banks In many months.
Another week like the past would cut the
reserve below the legal level by several
million dollars. The situation is a most in
teresting one, whether ii is conceded TO be
G dangerous one or not. The New York
banks are losing money. The movement
has been more rapid than outsiders have
believed. In the natural course of events
Il should continue several weeks longer dur
Ing the period in which the West and the
South annually call on New York for money
with which 10 move the grain and cotton
crops. II would seem that unless q change
In the situation is accomplished shortly
tight money in New York is a certainty
and with this perhaps a break in the stock
market. This is the bare statement OF the
most evident facts in the situation. 1t is
the aspect which has appealed 10 the street
and which has caused the selling OF securi-
ties for several days past in anticipation
There are two possible solutions of the sit
ration, however, that make it not by any
means so black as il seems TO many. There
Is undoubtedly plenty Of money in the in
terror such has not been witnessed
at any time in the past. The great
business activity prevents this plenty from
becoming a burden. but il does not pre-
vent cheap rates in the West. The logical
consequence OF tight money In New York
viii be flow OF funds from the West as
long as the New York rates make il profit
-hg .Isr Sc
movement OF the crop. with the business
boom IN other directions. win actually re-
sult Ia lack OF money ali over the country
sor It's needs. Careful financial students do
Do believe that il will They do not be-
seTe that permanent high rates are possible
New York al this time
Aid from the Secretary of the Treasury
= the second factor that may enter into
The situation. With regard to this state
ment made by Mr.. Gage 10 the writer OF
this column yesterday is interesting If not
important: Il have not been advised from
New York as yet that there is any need OF
Government aid in the financial situation
and until ] am informed OF such need il
would be useless to discuss the hypotheti-
cal case"
This statement may be construed TO
mean, II one wishes. that the financial peo-
- "a hAbAA cage TtilGS IOr his
formation, do not as yet consider the sit
nation In AIRY way alarming. And, In fact.
this is probably exactly the case. Ii would
be useless however. 10 predict that the
bank statement viii not cause some selling
OF stocks this week. There may and prob
ably VIII be tomorrow unloading OF securi-
ties by weak holders. On the whole. how
eVer,the situation does not indicate q s'ump
IL prices At point very near Ia present
Level il is more than probable that the
buying VIII be better than the selling.
The important people who have been buy
Ing stocks during the past few months
tano OF this there can be no doubtl win
not allow temporary fright over the
prospect OF tight money to spoil their
plans when everything in the countrv's
condition OF prosperity is so fine The So
BItion OF the entire market situation is
contained IN the answer to the question.
What has caused the briskness in money!
n few rlonths ago money was so cheao
that Il WIS in itself q menace. almost II
business were not so active and the coun-
Try SO prosperous the same condition would