The daily morning journal and courier., 1902-06-28

| correlation to the financial statistics of discount rates and banking items as published weekly by the financial jour nals In studying correlation the statistical methods of Professor Karl Pearson have been made use of, as Pro lessor Pearson's statistical methods have been found to apply satisfactorily to the problems presented under the theory of money and credit Dr. Nor
 ton has with success when introducing dry mathematical formulas, illuminated the subject and cleared the air so to speak, by stating the logic of the for
 mulas also in words and express ing the meaning of the tabulated state ments which are occult to most read CTS by the use of charts, Among the various special and strong points of in- terest in the work is the chapter de- voted to the periodcity of bank reserve deviatiOns, and after treating of the why's and wherefores of the periods of high and low tides yearly in bank re- serves Dr. Norton remarks upon an inn portant matter that engages the atten- tion of our best financial men as fol- lows:
  time affecting and must forever affect the money market by it's daily great transactions In some months of the year its expenditures are greatly in eX- cess of its receipts. At other times the opposite is the case. Thus in the money market, December Is considered an unfavorable month so far as govern mental operations are concerned, inas- much as the expenditures are small owing to no interest payments and lighter pension disbursements, The re- suit is a hoardng of currency by the government In March too, there are no interest payments, and at the same time the receipts are generally the !arg- est of the year This locking up of currency at times when business is in need of every dollar that exists, or again, the opening of the flood gates of the United States treasury at times when business does not stand in need of surplus cash, in no way regulated by sound finance, but dependent on <e many chances that operate upon the in- coming revenues and outgoing expen diture of the government, has long been a source of vexatious annoyance to the y is for the secretary of the treas ury to deposit the incoming revenues with the banks and to buy bonds at premium, thus releasing the surplus in the treasury, When sound financial method of relief is adopted, It Is prob- able that a National Bank of the Unit ed States will figure prominently among the details"
 Dr. Norton pursues the subject further in a very enlightening manner, speaking of the well known outfoWs of money from the New York banks at regular periods to move the crops and of the influence of good and bad har vests upon national financial prosperity | and adds, Tn any exchange system these facts must be forever met To !! provide the currency for the farmer | greater elasticity is necessary. To pro- | vide for the safety of values, elasticity | must be limited by security. How are these facts best met-by small inde- { pendent banks by branch banks, or by some regulated output of currency when the seasons come around?'
 The author proceeds further in this discussion and then speaks )f the field of action of the trust com Danies, and their influences upon the money market, of the foreign exchange market, of pool activity in the Notation If new securities and other topics kin lred to the subject