The Washington times., 1902-06-08
MONEY OUTLOOK
ESPECIALLY BRIGHT
Outstanding Loans Larger
Than Last Year.
REPORT OF COMPTROLLER
Exhibit May Mean Expanded Trade
and Higher Commercial Prices Have
Required Greater Extension of
Credit.


autumn is generally considered to be
especially bright.
| According to the quarterly report of
the Comptroller, the total outstanding
| loans of the national banks were s261. :
OOo.0OO larger on April so than they
We're year ago, while the proportion of
reserve TO liability was reduced from
29B to FIX per cent.
This exhibit may mean both that the
country's expanded trade and higher
commercial prices have required great
er extension of credit, and that the num-
erous corporate consultations and spec
ulative enterprises have been making ex-
ira demands upon banking capital.
Increase in South and West.
But the Importance of the first part
of the explanation should not be mini
miZeS by any intelligent critic Over 20
per cent of the entire loan expansion has
occurred in the Middle West and South.
and ii is precisely in these sections
where legitimate trade development and
the higher prices of commodities have
been reflected in the largest increases in
clearing house exchanges.
On the other hand, the loan expansion
at New York has been relatively small,
the account of the national banks. ac-
cording to last Saturdays report. stand
ing still some sl7 900. 900 below the maxi
mum of June, 1901. This analysis of the
figures. it Will be seen, points strongly
to the increased demands of trade as the
main tho OpnaruI npIa
of bank credits.
Larger Outgo This Season.
AS for the bearing OF the returns
upon next autumn's currency with
drawals from the Eastern centers the
decrease in the reserve ratio of the
country banks within the year, from
3Oh to q per cent, would suggest
larger outgo this season.
But such a conclusion is extremely
hazardous because in the first place, as
the record of bank clearings indicates.
the greater part of the additional re-
sources of the interior banks have been
employed in their own localities. and in
the second place the aggregate deposits
of the interior banks with the reserve
depositaries in the Eastern States are
actually some $4,000 coo less than they
were a year ago.
Uncertainty of Money Condition.
The money POSITION, in the Judgment
of experienced observers, is the main
uncertainty in situation which other
wise points unmistakably to higher
prices. Whether the crop-moving de-
mands next autumn are to be relatively
large or relatively small, is only one
of the questions at Issue.
1t is equally & matter OF doubt how
effective the coming reduction of the |
internal revenue will be in counteract- |
ing the present anomalous Treasury op-
orations in the market. and how pro- |
vision will be made for paying the |
heavy bill which we owe to foreign |
bankers. Back of all this, moreover, |
lies the fact that reserves of the New |
York banks are almost Unprecedented |
ly low for this season.
Treasury Drain Will Cease.
The supposition is. of course. that |
when Government revenue is adjusted on
the new lines after the lst of July the |
Treasury drain viii cease. Receipts OF |
new gold from the Alaskan mines will |
provide some material. moreover. isI
they did last year and The year before. /
for covering the Withdrawals Of the n /
terror markets.
When it comes to the foreign credit |
settlement everything depends upon the |
success of this seasons STAPLE crops. |
Another deficient production like that |
of last summer would unquestioDably |
have far more serious consequences than
any the money market of 1901 expert !
enced Happily, the prospect in this
quarter is singuIarly bright.
From all present Indications there will
he one of the largest harvests of corn
and cotton ever known in this country.
while the production Of wheat. after
the great improvement that has taken
place during the last month. promises to
at least equal The average.
Cotton and Corn Crops.
The one essential respect wherein the
outlook is more favorable than in any
recent year is the easy position of money
abroad. Even were the impending re-
vival Of commercial and speculative en-
terprise TO absorb the new supplies If
Transvaal gold. there Is an enormous
surplus of European capital already on
hand which has accumulated during the
long period of inactivity and reaction.
The present European situation is the
best guarantee there is against seri-
7us stringency in our money market.
NEW YORK BANK
STATEMENT FOR MAY