Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-07-08
CAUTIONS TIE Banks
Henry Clews Urges Need OF eau.
ton in the Money
Market.
"
Demand for Currency to Move
the Crops May Cause a
Strinsency.
Tying Up Of Too Much Capital
In Stocks a Bad
Feature.

financial Review says:
Torrid heat absenteeism. the holidays
and firm money all combined TO check
activity on the stock exchange AS a
result there is little change in the stu
alton from week ago. Probably the
quarter IN which caution is most needed
just now is in The money market. Loans
iere greatly expanded and bank reserves
are low. The latter may rise for a peri
oc after the July disbursements, but nc
great relief can be expected in this di-
reetlon, and the outlook for strengthen
irs the reserves thru the contraction of
loans is not very promising ON the con
trary there is every prospect OF a pro-
longed and active demand sor money al
iiimer rates than have ruled in the pass.
Unusual demands for funds to move the
crops are already practical certainty:
and If business during the coming au-
tusnn takes on the activity ts1tt is now
expected the banks Will be fully taxed
in meeting legitimate requirements Or
dinarily we car calculate upon gold inn
Ports IN the fall months; but this year
that source is somewhat doubtful in
view OF the strained conditions liz GER
tain of the European financial centeis.
Depression has set in With considerable
force in some parts OF the world. which
must In degree be reflected in the New
York market Any important addition
to the regular worlds gold output
whether thru the klondike or from
South Africa, will OF course be beneii-
cial, bat this IS altage,her rsoblenati-
cal The outlook, Therefore, is for firm
money market during the remainder of
1901 This. il should be noted. is not fa
rcrable 70 bull campaign Of great di-
mensions The resources Of the banks
are already So fully occupied that they
can rot be ernpleyed with much greater
freedom in speculative operations. Were
prices not 50 high, or had some lcompul-
sorry liquidation taken place the chances
II an active bull narket.wauid be much
better.
on the other hand. general conditions
are exceptionally favorable II prices
or possible diviGer6s that make the VA
ICES OF stocks. American railroaGN are
s'ill enjoying most exceptional prosper
ity They are not onIy carrying record
breaking tonnage, bu rates have been
increased diNidends are being earned on
some roads, while others Witch never
dreamed Of dividends il tiiia generation.
desirable ard cpmfor.ab status The
railroads ara really enjoying the most
lesitinlatc and spbsanfial prospe.ity "
aas interest in ,he country, and II the
quotations IF r.any seem absurdly high
they are really selling on their merits
much more elnse'y than the majority VI
inG0stfias The cemlnuEi;y ~ inter-
50. plan marks a distinctly new era IN
t's- railroad World ard IL is that when
is adding % greatly 10 the earning
powers Of the RAILROADS. Crop reports
arc senetaiy Of a fnycrs bic chsra Tar.
notwithstanding the extraordinary
Neather If ~. week The wheat crop
Is practically safe and some estimates
run as nigh as 7eo.o100oo bushes While
this seems an exaggerated figure. there
is little doubt that the crop MIL be the
largest On record. General buslness com
eitions are certainly satisfactory ara
thsre ia every presp-c that the last
six months Of 1901 will be as good as
,he. same tine III 1900 II not better Re
cent bank failures have Induced some
caution IL barking circles which Mas
erninently desirable. No general IN
saundnsss can be detected, but these ara
warnings Of speculative excesses and
weak spots that should not be over
looked. Quite likely we may have SIM
liar experiences later IN, tnese being
times v hen undue isks are taken. Wa. n
credit contracts collapse follows. and
henceforth the banks are likely TO be
more discriminating in their collateral.