The Montgomery advertiser., 1902-09-27
THE MONEY SITUATION
FOREIGN VIEWS OF STRIN- GENCY IN NEW YORK.
Neither England Nor Germany Alarmed by the High Rates Prevailing on This Side
 of the Sea.

Berlin, Sept. 26.-The New York money attention.
 Dr. Koch. President of the Reichsbank. referred to the money situation in New
 York at the monthly sitting today of the Central Committee of the bank. He said the situation there was not exactly clear, but that up to the present time it had not affected the German or other European banks. The fact that the Bank of Eng land was not afraid of the American stringency, and even if the Bank of Eng land did raise its rates, said President Koch. similar action in Berlin need not immediately be expected.
 Although the demands for the closing quarter are heavier than usual, still the
 Reichsbank's status is so strong that it
 will be able to meet the requirements at the existing rates. President Koch said the banks recent slight loss of gold had
 been occasioned by the domestic demand
 and that gold exports in the immediate future were not apprehended.
 The President of the Reichsbank said also that the situation showed the usual
 movements caused by the impending au- tumn demands and that during the last
 week of September strong tension was | inevitable. In the meanwhile, he con tinued. notwithstanding the rise In the rate of discount on the open market 1t is not yet possible to foresee how far a
 rise in the bank rate will be necessary, | more especially as more gold Is coming in than going out. and that foreign rates of exchange are favorable.
 It is understood that German banks are
 still placing funds at the disposal of | their New York agents and the aggregate
 of these loans a week ago was estimated
 by a representative of the Deutschbank
 at $5o,0O GOO, and the total of European
 nor ey in Wall Street at about $200, 900 900. The Frankfurther Zeitung, after review ing the American money situation at length, says:
 "The Stock Exchange. of course. can net wholly escape the influence of the money market. Nevertheless, 1t is signi- ficant that the volume of transactions in New York continues to be enormous in spite of the stringency and that there Is such active business notwithstanding
 dear money. This reverses the German experience and confirms the old obser-
 vation that American manipulators care little or nothing for money rates. They speculate at any cost.
 "There exists no doubt that sound busi-
 ness in the United States does not need
 to pay the high rates now prevailing;
 orly for unsound ard frothy business does the money calamity exist. The most re-
 cent boom quotations are undoubtedly due partly to powerful economic develop ment but they are mainly the work of desperate spectators, who, reinforced by
 the younger generation of old financial families, are the chief supporters of the movement and with them lies the dan
 ger. It is not the large demands for nov ing harvests or the needs of regular busi- ness that gives a characteristic mark to
 the present stringency, but dangerous over-speculation and capitalization. We do not forget for one moment that America has grown very strong in the
 past few years, and is still developing; nevertheless, we carrot ignore that along
 side the sound growth the serious ex- cresoence appears which certainly is the germ of dangerous revulson."