The Montgomery advertiser., 1901-06-09
In 1he Financial World

AA~AOA
 ! peposits. s97211s. 800; increase. s19: 12o. soo Circulation. SO, e33, 400; decrease, $l6o, lo Legal tenyers, $77,3il,5)o; decrease, Sei'- ! 1o9. - Reserve, $2e,3 1.f00; decreass. $osl.No Reserve required. 2fS.2e3. 200: increase
 Surplus, si3,s41, ,5oo; decrease. s,si1'o'o' NEW YORK, June S.-Ths Financieff says: One of the surprising featuIes ' | the New York bank statement or 1uhe O i Is the expansion of $21 .2S4. 4O0 m tne ioai. M
 item. The effect of this r,ae 1nerfaS in demos its. and as this in turn necessitateo yer 7 7 | much larger reserve the excess suipiuo ppi suffered a decline of about eight milIloii '
 of dollars. the loss of nearly tnree ',,- an- | lion in cash holdings having been an ,E,p ap- | preciable factor in this respeesooc sp, soo as present excess stands at SIS, oW, as | against S21 ,253,050 for the preceding ween. The decline Is equivalent, therefore. e' 37 per cent, which for one week opera | ton is unusually large. The increase III Il' the loan item can be attributed in part to | Union Pacific convertible bond options. | which called for heavy accommodatioIia | during the week, and the fact that one bank which had great deal to do Witn | the transaction, reported an increase III | loans of about eight millions, strength | ems this theory, In addition, however, u | is known that commission houses nave
 been borrowing heavily, especially on | long time and this also assisted Tn swelling the volume of outstanding | loans. With reference to the loss Tn casn | of g. .9St, 400, it is 10 be rememhe that the statement of the banks for the pre- vious week accounted for only about half | the gold taken for export. and the re- mainder probably shows in the present
 exhibit. The cash totals arc still nearly a million dollars at variance with known | operations of the week, but this Is to De | attributed to the misleading system Of averages on which the statement Is com l pile. It is worthy of note that discrep- | ancy of about $1O, ,GG0. .0O0 now exists. as be- 1 tween the clearing house statements and l the most accurate preliminary statistics based upon known operations extending over a period of three or four weeks. and the assumption that the condition of the banks. from cash standpoint, is better than shown in the present statement Is not warranted, The excess surplus how ever, is large enough at this time to minimize the effect of the heavy changes
 noted and it is not regarded as likely that money quotations will show material fluctuations. Advices from important cen
 tres are to the effect that dilsculty is
 experienced in holding rates at their present level.
 LONDON. June s-The present suber-
 anbundance of money is largely due to
 free government disbursements. While
 these disburss sments c>sse plenty of money the Government posi-
 ton is increasingly embarra sing. The process of the exhaus
 cash balance to vanishing point by the | time the next loan insta llment, 5.510.000
 pounds. is due. June IS. This will be in
 sufficient to meet the disbursements to
 July Il. when another installment is due. Hence, in order to provide for the inter est on the debt July 1, the government probably will be obliged to raise three
 millions in deficiency bills, thus begin
 ming July with a floating debt of ap-
 proximately five millions. This process of receiving a loan installment in antici- patton of the date is due, apparently to continue for some time and unless the war ends earlier than it seems probable, the inSta lments will he insufficient ]
 meet the outgoing amounts and the
 government will be obliged to borrow a considerable sum in anticipation of the
 revenue of the March quarter. The Statist says:
 Tt cannot be too strongly impressed
 upon the government that the actual sum paid out on account of the war Is very small part of the expense the nation Is bearing and that commercially as well
 as financially, the prolongation of the war is a. very serious matter"
 The fall in consols to below 90 prog noStieated weeks ago, is daily nearer realizatio
 Discussing the effect of the bank rate on discounts, the Statist points out the danger Of an undue decline as there is great likelihood that money will 6S ex- ceedingly scarce and dear in the autumn. adding:
 There is much to suggest that the de- mand rom tho United States at all events will be eXcontonallX- -great- toward the end of August and throughout September Of ha Ir,RN 1 the crops promise to be poor in the greater part of Europe and there is a prospect that France md Germany will have to buy more wheat than lately. Those competing with the United States in the markets of the world will all have
 to pay higher prices for what they want. Germany may be able to get most of her 1 supplies from Russia. It is safe to con cIudc, however. that the United States
 Will either expert a larger quantity even
 tnan ln recent years. or if the weather or Jun" and July injures the crop she will be able to s:ll at higher prices. So Tar as Furope is concerned, it is desir- Hole tnat the American crop should be
 very large; it seems certain that in any event the balance of indebtedness will
 be increasingly against Europe and in faTor of the United States Therefore if IS not an unreasonable conclusion that the Voium" of money needed in tho au
 tumn to conduct the vast which it seems likely will he beyond all comparison other than ever before enhancing ratns greatly will result in a large drain of gold
 to the United States"