The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-03-06
THE MONETARY SITUATION
HEAVY DEMAND UPON NEW YORK
BANKS FROM SOUTHWEST.
Some Depression in Speculation Caused
by Effect OF slaekened Movement Of
Crops and Northern Securities Case.

The New York Finapcier reviews the
monetary situation rs follows
Tho monetary situation is somewhat ne,
cuiar for the sccron of the year There
rms ars 20 be almost glut OF lOanable
funds at this center, Judging from the
rate Tor money at call. while at the West
and In the MOI Invest mUneS Is Cdeap.
though loaning at fair rates as the result
of a steady demand for business require
mcutS. In the extreme Southwest, and pare
ticularly In TeXas. mercantile demands
Urop the banks are 20 urgent, maialy be.
cause OF deficient crops, which hSVe ne
ccsSitatcd the extension Of accommodation,
thit the banks In thar locality are applying
81 their New York correspondents for re.
Gtst cunts. Unless money at this center
should grow more active. Us the result OF
gold exports To Europe IN volume it ap-
uears Likely that there will he no important
movement of currency hither from the in.
terror and local conditions may continue
practically unchanged for the remainder
Of the season.
Bankers who are In close touch with the
business situation throughout the country
Say that. generally speaking, commercial
interests are la an excellent condition The
distribution OF goods Is large, collections
are prompt and merchants are not eNces.
slve borrowers. This mGy be regarded as
somewhat remarkable considering the de-
hclcncy ia the corn crop In many States o.
the West, but it Is accounted for ny the
fact that the short yield OF corn and the
resulting high prices for this staple brought
Into sight reserve stocks OF the cereal from
which the farmers have pronted. Moreover
lmportatlons of foreign goods have been
stimulated by the prosperous conditions
which have prevailed during the past few
years and these fabrics have been promptly
While elsewhere the situation seems to
he all that could be desired. There seems
to be a condition OF depression ia Wall
street the speculative center of the coun-
try which is easily accounted for and
should this condition continue IL can
scarcely fail 10 be reelected 10 other sec
! tions of the country and tn some important
I branches of industry. Railroad earnings are
/ beginning TO show decided decreases as the
result OF the exhaustion Of reserve stocks
/ of corn and of the DELAYED movement Of
cotton and Of other agricultural products.
aud consequently there Is less assurance OF
large returns TO stockholders. There Is
. evidence Of oyerptoducuou In some
branches Of industry which, unless II
should Ice Offset by increased consumption,
will unqucstionably afecr values OF indus.
I trial securities. The action of the president
/ In the matter Of the Northern Securities
company mas already resulted in attract
Ing attention TO the dangerous possibilities
Of uurestraiucd combinations of capital,
I and 1t has had the effect Of holding specu-
lation In check and OF inducing cOnserva-
SIN among capitalists and large lenders
OF money.
The supply OF commercial paner is mca.
ger. chiefly FOR the reason above noted
that collections are good Hnd merchants.
therefore, have little need 81 money Somc
Of the banks having Southern connection.
have had such good demaud for re dis.
counts rs TO have kent them ont Of the
local market. One feature has been quite
large purchases OF paper by Chicago and
Northwestern banks. Rates are per cent
for Endorsements maturing in April and
May, ana TO A.. per cent for choice Siugl.
games running into June aud August.
On Tuesday there WAS "A siig't recession
in rates for sight sterling and coucurrcutly
exchange at Paris on London grew firm
This WAS regarded an indication that
ferred until next week. On Wednesday
however there was an easier tone fCl
French exchange on London. and Il w.
then announced that SS.5O 000 gold wnuit
he shipped on the French steamer satin.
for Hayre on Thursday. II appears prob
able that the fractioually lower rates ~
sight sterling In New York on Tuesday
were due 10 offerings of bills drawn aguiuS
the gold. the shipment Of which was theI
same time. secured French exchange IA
| London for the reimbursement Of theL
cterlinc drafts on that center against the.
! exports Of gold The metal wcnt forwGr,
( chiefly as Tho result 81 demand 80 rent
for maturing loans
Cable and mai adyices report an abuDd
! ant supply Of money at cOHtiuont0l cen
ters ana especially at Paris, and this vii
| account for the coulpa-ativelv arm ton
for exchange AT Parts aud Berlin on Lon
don. unemployed funds being ten'po7Tl
Invested In sterling. II Is noteworthy thu
the stock % gold In the Bank OF Franc
; Is now n excess OF $500 100. 900. while m
gold holdings OF the Rank Of Germany gg
! about 500. SEQ 900. Tho Bank ~ Enc'0n
p has Sls9 900. The gold IN the Unite
States treasury is about S647.Ooo0Oo.