The sun., 1902-03-09
FINANCIAL AND COMMERCIAL.
SATURDAY, March 8.

money enOWn IN tO-uay Ddhh sVo'ofh0"e
was a surprise to those who had overlooked
the fact that the loss in cash sustained
by the banks at the end OF last week was
not reflected to an appreciable extent IN
last Saturdays statement OF averages
As the gold shipped TO Europe on Thursday
and to-day, aggrogating about ss,75o,ooo'
figures in the statement for only day or
two. il is obvious that the amount OF lawful
money actually held by the banks is less
than that shown in Che statement. The
most interesting feature Of the statement ia
the decrease Of about s., 900 900 In the loans.
The amount in not large, but the change
may be significant as indicating that the
expansion OF bank accommodations has
ceased This II the first time in nearly
two months that the banks have reported
a decrease in loans. That II has been vol
untary is plainly indicated by the con-
dition of the money market, which has been
very easy all the week under free offerings
both on call and on time Notwithstanding
the exports Of specie and the known shift
ing OF money from the banks to the Sub
Treasury both on account of those exports
and In payment Of dues to the Government.
Although there Is a constant discussion
In the Street regarding the probabilities Of
an active money market in the near future.
the market for securities does not reflect
such an impending development. The
reason for this, doubtless, is that well-in-
formed borrowers Of money know that the
trust companies and other financial insti-
tutions that are not members of the Clear
ing House have large amounts available
cash which they will put out whenever rates
are satisfactory to them. As long IA call
money rules at 2d?l1 per cent, they will not
disturb their balances in bank on which
they receive per cent. Moreover, mod
crate advance in money rates at this centre
would attract considerable sums from the
interior Still another factor that became
operative at the close Of the week is the
disposition Of banking houses engaged In
the foreign exchange business to draw ex-
tensively upon their credits abroad.
In consequence some sterling loans have
been made, and Il would not be surprising
IL the amount was increased materially
should the money market become more
active. II is conceded that European bank
ers do not especially need the money that
has been exported lately, and. as monetary
conditions both here and abroad are in the
main satisfactory. they have decided 20
increase the credits granted to their Ameri-
can correspondents. According 10 the
hest information obtainable, the credits
granted last spring and summer have,
been pretty generally liquidated. In the
case OF Germany they were completely
settled at the end of the year. The ex-
pectation is that the ones now being granted
will be met within the next four or five
months by exports of breadstufs and other
commodities.
1t would appear from the situation as
described above that apprehensions OF an
uncomfortably active money market are
unwarranted. As a matter of fact. the
Stock Exchange contingent is not a con-
spicuous borrower at present, for the pub
lie is not in the market TO any great extent,
and the speculation in specialties and low
priced stocks is offset. 80 far as money Ia
concerned, by the steady absorption of
bonds and Of investment stocks by actual
! purchasers The needs Of the commercial
community are being taken care Of without
the making of any special demands upon
this centre On the contrary. many inte-
rior points are in a position TO send money 10
this centre whenever it can be employed
10 better advantage than in the home
market II should not be inferred from
this circumstance that business il slack.
Trade reports agree that the only obstacle
10 an unpreoeden,edly large spring busi-
ness is the serious interruption OF trans
portation facilities by the unusual floods
and continued inclement weather. In spite
of this drawback. a very large business Ia
being done, particularly in the West.
The only section in which a measure
| of caution is reflected is the Southwest,
where an absence OF needed moisture has
caused apprehension regarding the wheat
crop, and also other crops that will be
planted later. Bank clearings for the week
were nearly 10 per cent larger than for
the previous week. but nearly per cent.
smaller than for the corresponding period
of last year This unfavorable compari-
son results entirely from the enormous
speculation in securities on the Stock
Exchange last year, for outside OF New
York the clearings are o per cent, larger
than for the corresponding week OF last
wear. II is interesting to note that there
was large increase in the exports OF bread
s,uffs as compared with tho previous week.
Tho iron and steel industry Is apparently
suffering more seriously from the inter-
run,ion OF traffic than any other trade.
There Is no abatement Of the demand,
however, and prices are exceedingly well
maintained The labor situation has been
improved during the week 10y the settle
ment of the wage scale by the tin plate
mills. There are indications. also, that
satisfactory agreements have been made
by both anthracite and bituminous coal
operators with their employees.
In the transportation industry the note
worthy developments have been the aban-
donmcnt Of various traffic associations
in the West, ostensibly because they were
held 10 be in violation of the Interstate
Commerce law, but actually because they
had failed TO accomplish the purposes
for which they were formed. AT the same
time. the Attorney General has undertaken
20 enforce certain provisions Of the Inter
state Commerce law with the view of pre-
venting discrimination in rates through
secret rebates and by other methods Il
Is 10 be hoped that these efforts will prove
successful. but unfortunately the record
of the litigation instituted under the Inter
state Commerce act shows that the measure
| is Inadequate or defective for the purposes
that it's trainers intended to accomplish.
| The Northern Securities case continues to
| receive the extraordinary attention that IL
merits from both investors and corporal ion
| ;,l,,otfan.