Omaha daily bee., 1902-12-22
BIG MONEY POOL HELPS OUT
Demonstrates Powerful Interests Are Bound
TO Protect Market
LOAN CONTRADICTIONS ARE NOT HEAVY
High Prices n serious Handicap TO
New Enterprises and Also a seri-
Gus etbRc 60 the Ex-
port Trade.

NEW YORK, Dec. 21.-Cspecial)-Henry
Clews, in his weekly letter, says:
The creation. OF the $500 900 loan pool by
many Of the big New York banks had a
decidedly beneficial effect. IL was a very
practical demonstration that powerful in
terests were agreed in protecting the mar
ket against an unnect ssary crisis; that good
and legitimate borrowers would secure such
accommodation as they might need, and
that no funds would be available for specu-
latiVe purposes. What the emergency was,
serious enough to call for sucn unusual
action, is not revealed. IL was probably
general, and can no doubt be >Saced back
TO the large amounts of money involved in
various underwriting and syndicate opera
tons. For some time past 1t has been no
secret that this was the weakest spot In
the whole situation, and some of our ablest
hnanciers have been sorely puzzled 10 know
how the period. of stress anticipated at
THIS season OF the year would be met. It
is believed that all serious danger has been
averted. and such, 1t is to be hoped, will
prove to be the case. The mere assurance
crisis tends to remove apprehension and
prevent such an emergency. 1t may be the
money Will not be wanted for the same
reason that a depositor will not withdraw
his account so long as he has confidence in
his bank. The influence, however, of this
o1er by strong bankers upon sentiment Is
highly important and beneficial. Call money
was easier at once, though time money re-
mains about s per cent.
Small Contraction of Loans.
1t is worthy of note that in spite Of the
heavy liquidation of the last three months
$50 900, 600 since highwa 6r-mark in the mid
die of August. This Is a comparatively
small reduction, and is probably explained
by the fact that American loans abroad
have been freely Cancelled or shifted to New
YORK. Foreign bankers have been some
financing, and this has thrown us more
upon our own resources at a somewhat
inconvenient season. AS a result we ought
TO ship less gold In 1908 for settlements. So
THIS enforced TetTenChment has It's R0Hant-
ages.
While time money Is on a per cent basis
1t is evident no legitimate widespread bull
market can be expected, in spite of the
g points decline lately experienced.
Either money rates or stocks must decline
In order to eQualize this difference; just
which remains 10 be seen. There is much
reason in the argument that after such an
Uninterrupted decline as that just noted a
good reaction is due. Considering the ac-
tivity and soundness of general business,
any Improvement in the monetary situation
would certainly warrant a fair recovery.
The year closes with no signs OF a cessation
In that activity; on the contrary; there is
could be made to decline somewhat in pro-
portion to the drop In stocks, a new and
safer business level would be reached on
which plenty of new contracts could be
placed with confidence.
High Prices a Handicap.
Present high prices are a serious obstruc-
ton to Lew enterprise. The effect Of high
prices has been strikIngly illustrated in our
foreign trade returns, which showed a loss
of SIG, O,000 In exports during the last
eleven months and an increase of SIS, 00O,0O0
In imports. Much of this loss can be traced
to the deficit of last years corn crop and
Its effect upon other cereals and meats
which form a large part of our exports;
but higher prices for cotton and oils. also
manufactured products generally, stimu-
lated imports and checked exports until our
excess of exports for the eleven months of
this year was only 1881, 100000, compared
with $527, 100000 for the same time last year
ent and heavy a decline In our international
trade balance is highly significant. There
is a probability of a change for the better
in this respect, for there is a good demand
for corn for export this year. and the recent
declines In wheat and corn are favorable
to an outward movement OF those staples.
Reaction Anticipated.
The immediate outlook for the stock mar
ket is for a natural reaction after the recent
very heavy decline in prices. Currency is
beginning to return from the interior more
freely and treasury absorptions are d.
minishing, while lower prices for wheat and
corn promise a better. supply ofseXport bills.
To this extent the situation seems slightly
better. The Venezuelan situation is a less
misut de- standing between the United States
and European powers about the acquisition
of new territOry-the vital point of the
Monroe doctrine. Preparations for January
a temporary money furry would not be
surprising. About the middle of next
month, however, the monetary situation
should show Improvement. and II other de-
velopments continue favorable we will GER
tainly nave a good. trading market. The
general trend of the market for the present
promises to be more confident on the buy
Ing side.