The Washington times., 1902-12-21
Serious Danger Averted.

10 is believed that all serious danger
has been averted, and such. il is 20 be
hoped. viii prove to be the case. The
mere assurance that $50. 600. 600 will be
available in case Of crisis tends 10 re-
move apprehension and prevent such an
emergency. II may be the money will
not be wanted for the same reason that
dcpositOr will not withdraw his ac-
count so long as be has confidence in
his bank
The influence. however. OF this offer
by strong bankers upon sentiment is
highly important and beneficial Call
money was easier at once. though time
money remains about 6 per cent
III ls worthy OF note that in spite Of
The heavy liquidation Of the last three
months the contraction OF loans has
been only $j1,c000G0 since high water
mark in the middle of August. This is
"a comparatively small reduction. and IS
probably explained by the fact that
American loans abroad have been freely
Cancelled or shifted TO New York.
Foreign bankers have Teen somewhat
dlstrustiul of American methods Of
financing and this has thrown us more
upon our own resources at somewhat
iuconvcnieut season. As a result we
ought TO ship less gold in 1903 for set
tlemeats. SO this enforced retrenchment
has its advantages.
Bull Market Not To Be Expected.
'Whilc time money is on per cent
basis and good stocks on a 4a4iz per
cent basis, IL is evident no legitimate
widespread hun market can be expected
in spite Of the 2oG3O points decline late
ly experienced Either money rates or
stocks must decline in order 10 eduaIIze
this difference, iust which remains to
Pc seen.
There is much reason i'm the argu-
mcnt that after sUCh an uninterrupted
decline as that just noted a good reac-
tion is due. Considering the activity
and -soundness Of general business any
Improvement I'm the monetary situation
would certainly warrant a fair recovery.
The year closes with no signs OF ces-
5ation IN that activity; on the contrary.
there is every evidence that. II mer-
chandise prices could be made to de-
cline somewhat in proportion to the drop
in stocks. a new and safer business level
Wtuld BE- reached on which plenty OF
new contracts could be placed with con-
Gdencc.
Present high prices are a serious OBJ
struction 90 new enterprise The effect
OF high prices has been strikinglv il
lustrated In our foreign trade returns.
which showed a loss OF $4,000 600 I'm
exports during the last eleven months.
and an increase Of $4,000 coo in inn
ports Much OF this loss can be traced
TOO the deficit OF last years corn crop
and It's effect upon other cereals and
meats which form large part OF our
exports but higher prices for cotton
and oils also manufactured products
generally. stimulated imports and check
ed exports until our excess OF exports
for the eleven months OF this year was
only $53I4Oo.000. compared with s527.
900 600 same time last year. and s571
100000 the year before.
$50 persistent and heavy "a decline in
our international trade balance is hIeh-
ly Significant. There is "a probability
OF q change for the better in this re-
spect, for there is a good demand for
corn for export this year and the re-
cent declines in wheat and corn are ia
vorable 20 an outward movement Of
those staples