The Washington times., 1902-09-14
HENRY CLEVS' REVIEW
OF CROPS And TRADE
Treasury Relief Can But
Soften the Money Pinch.
COUNTS UPON FOREIGN GOLD
Funds Plentiful Abroad and Vast Sums
Are Expected to Seek American In
vestment-Big Loans Await Crops.

Henry Clews. in his weekly market
letter. says of the financial situation:
Both crop and trade demands will be
larger this year than last. because OF
the larger crops. The increasing finan-
eial independence OF the West may
make moderate demands upon Eastern
banks. but the latter will have no funds
to lend for speculative operations until
crop money begins to return in Novem,
Der. The bank reserves are close to
the legal limit. and at about the same
level as last year, when interior require
ments were diminished by failure of the
corn crop. AT best, the relief offered
by the Treasury will do little more than
soften pinch. and gold imports can
not be depended upon to meet really
sudden emergencies. The stock market,
therefore, stands exposed to- awkward
moments in the loan market. Fcyced
liquidation would be unpleasant to
many: yet it might suit the purposes
OF certain spectators, and strengthen
the banks through a contraction of
loans.
Wall Streets Foreign Resources.
while 1t is practically certain that
our domestic banks will be fully engaged
taking care of legitimate home require
ments, it is we'll to bear in mind the
foreign resources of the great bankers
who now control Wall Street operations.
Europe is better able to spare funds for
employment in the United States than
for many years. and this in spite of the
fact that our borrowings abroad are al
ready upon a very extensive scale.
Money rates in the open market range
from 1A to 8 per cent In Paris. Berlin
and London, compared with an average
of say per cent in New York.
Germany is rapidly recuperating
from the reverses of two years agos and
funds there are plentiful with no special
demands in prospect, except from crops;
so that Germany could probably spare
some gold If needed. 1t will be remem-
bered that New York sent several mil
lions to Germany in time of difficulties
two years ago. ana there is no reason
why the operation should not be re-
VerSeu IL
Paris a Source of Aid.
Paris, however. appears to be our
most likely source of aid. France has
enjoyed several successive years of
capital there is abundant
and finds difficulty in securing satisfac-
tory employment at home; consequently
large sums have found their way to Lon
don and Germany, while 1t Is now a
familiar fact that French loans in New
York are the largest on record. Very
likely our credits with French bankers
could be considerably expanded II de-
sirable. for at the moment French capi-
tai is shy of home investments owing
TO the enforcement of the association
law; a circumstance which would make
its owners the more willing TO lend
a broad when good collateral and profit
able rates are offered
London Rallying From Beer War.
"As to Great Britain, her financial
will soon demand new outlet.
now that the Boer war Is over and that
extravagant waste of capital is stopped.
l<OHuUH VI iiititaS-
ing interest in American stocks. and the
growing prestige of American industrial
and railroad methods is not at all ua
likely to be followed by revival OF
English investments in American Sc
rurities 1t does not seem likely. how
ever, that we can bring any important
amounts OF gold from London in view
Of a possible advance in the Bank of
England rate; but moderate amounts
could be had in case of prolonged strin-
gency and something would be gained
heir securities were taken in part pay
ment of our foreign Indebtedness.
LAS the nine principal European banks
now hold over 10000. 900 more gold than
a year ago, It Is plain the foreign stua-
ion is distinctly favorable to the United
States first as to financial aid, and sec
md as to possible market for our sur
,lus products and securities. which can
lot be disposed of at home.
Big Loans On Crops.
''In these days of growing irternation-
II irterdependence. our national self
confidence should not lead us to depend
,vermuch upon our own resources. Both
,'rance and England have important pub