New-York tribune., 1900-08-20

THE WEEK IN wALi STREET.
The FIRST half Of last week witnessed a de-
cline and the last half an advance in prices OF
stocks. The change IN the trend OF the market
appeared 70 De due 70 the notion Of spectators
that an advance in rates for money was not far
on. It has been the ease in money that has
kept stocks going UP practically the summer
through even when there were other things that
were calculated 10 put them down The state
Of money. II is fair to assume, will direct the
course Of stocks in the future, as IN the past,
and It is therefore the matter Of paramount
importance. It is something that cannot be
disregarded. The time is nearly at hand when
the movement Of money will naturally be largely
against New-York and in favor Of the interior,
and # follows that as the supply Of money at
this centre decreases the tendency Of rates for
It will be 10 rise It is e question whether
stiffening IN rates is not already perceptible.
The bulk Of the loans on call Thursday and
Friday were made one-fourth per cent higher
than on the days Immediately preceding Sat
urday, as usual, the money market was merely
nominal Loans made on Friday hold good until
Monday.
The bank statement on Saturday showed that
xhe associated banks held in cash $244. 136, 800,
or 6,253, 900 more than al the same time last
wear. Their loans were SSl4 SS3 600, or S37.149.-
200 greater than in 1899 and their deposits
were 1894 81, 500. or S43, ,116,S00 greater. The
surplus reserve was SlU.557. .O50. or $5.474,700
greater than IN 1899. II is this last item that
Sc Of particular interest. It represents the cash
which the banks can let out without reducing
their cash holdings below the legal requirements.
The surplus reserve having been only SIS 0S2,3 $50
q year ago. Il speedily disappeared when the
drain In money began. While the reserve is
larger now than It was in 1899. It is not enough
larger TO last long when money begins 70 how
out of New-York In 1S99 when the surplus
reserve vanished. the banks were compelled to
call IN loans to keep, the legal reserve up. The
calling in Of loans continued for a considerable
period and it had the natural result during that
period OF making money tight. There undoubt-
edly will be calling OF loans this year. but 1t
presumably will not be as extensive as last year
The volume Of transactions In stocks is very
small compared with last year, but that Is
hardly the point Were the dealings at this
time as large as In 1899 there would not now
be any surplus reserve With a business Of the
proportions that prevailed in the summer Of
1899. there would ere this have been calling of
loans and higher rates for money. The fOta-
ton Of enterprises requiring the employment OF
immense sums has stopped or at least has
been suspended and commercial and mercan-
tile needs are not heavy, not because bust
ness has contracted, but because those interests
have been prosperous, and are much better sup
riable that there is more money In the West
and South than ever before but there is not
anywhere near enough money in those sections
70 take care Of the crops. There will be- as
usual. a call upon Eastern banks, and par
ticuIarly upon the banks Of New-York, for funds
TO move the crops and any other idea is 8 mis-
taken one.
It may be that not as much money will be
needed as heretofore by the West and South.
ba e,F
fciently great to create decided change in the
money market. The expectation of gold to
Europe has been discontinued, perhaps perna-
1urely and perhaps temporarily. It is hard 20
believe that with its vast expenditures in South
Africa and in China England will not feel the
necessity Of securing gold in the United
States. the only country where it be OBJ
1ained. The Bank Of England can obtain gold
here any time It sees At by making special con-
cessions TO shippers. 1t is not known definitely
whether further shipments Of gold will be made
on account Of the American subscription to the
British Exchequer notes. but It would not be
surprising II such should prove to be the case.
II is quite certain that there Will be importa-
ton Of gold from London any other part Of
Europe for some time. or at any rate. until the
European money markets relax.
II is fortunate that the Government is d.s-
bursing money freely in the redemption Of
Australia, Alaska and the Klondike in liberal
eonsgnments The output. too OF the native
mines is large. The increase in National bank
circulation is proceeding on a scale that is
little short OF remarkable. Altogether there is
premise that before another year rolls around
there will be vast augmentation Of the amount
Of money IN use IN the country. The growth in
the amount the present year has been such
TO Furnish assurance that the crop moving re-
quirements win not sccomplish anywhere near
much OF advance IN money rates as yvas
witnessed last fall The belief is that rates viii
not 60 far above per cent in the ensuing few
months and Il they Go II viii be for reasons
that at this juncture not perceptible.
The situation a whole IS satisfactory, and
81 must be reflected n higher prices for securities
after the expected tightening in money is passed
and the political campaign is closed. Railroad
returns tell an indisputable story of good bust
ness in general Earnings are fully equal tc
those year sso, and the prospect is for IN on.
largement IN them later In the year Bank
-elearings may have decreased, thus implying 2
decline in trade at large but the story told by
the railroads IS q more trustworthy one. Trc.
Yllendous financial operations were in proeres,
in 1899, which have been concluded, ant
fhis fact probably explains the falling on
IA hank clearings. A readjustment in n,
steel trade Is proceeding and there is rnor,