Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-01-12
Henry Clews Finds Money
Stringency Passed - Conf
dence in the Future
WAGES ARE AT THE TOP LEVEL
Funds Are Returning to New York
From the Interior and the $4,000, 900
Pool Has Seen Dissolved-Many Big
Deals Being Finanoed-Every Line
Crowded With Orders.

New j ork, Jan. 12--1le weekly re-
view of finance issued by the banking
house of Henry Clews & Co. today
been persistently pointed out in these
advices that the money market was the
key to the speculative situation. There
was sufficient funds during that period
to go round for proper business de-
mands, but absolutely none to spare for
consp icuous speculative purposes. With
the opening of the new year as ex-
pected, a distinct change for the better
has developed in the monetary situa-
ton. Urgent crop demands have besn
met and funds are returning from the
interior with growing freedom. Forced
liquidation in stocks during October.
November and December also released
large sums of money. while the closing
out of several important underwriting
schemes had a similar effect. As re-
suit bank reserves are beginning to rise.
and loans would have shown much
larger contraction than they have. done
had it not been for the transfer of loans
made in foreign markets to domestic
banks The latter feature. tho some
what of surprise at the time, had the
good effect of diminishing our indebt-
edness abroad. and SO lessening the IN
ducements for gold shipments. besides
demonstrating the strength OF our
banking resources at home.
Now that the stringency incidental to
Jan. has been passed and the seasonal
demands are over, the outlook IS 1oI
more abundant money supplies anu
CONSEQUENT easier rates. This does NOT
mean that we are to have PERIOD OF
clear sailing. On the contrary, the SIT
untion. tho improved. will require very
close watching. There has been
heavy increase in the demand foI
money recruiting from these three great
causes which are still! in force 10 some
depree: az Unprecedented trade actlV-
,tv: (2) financial deals of immense
mapn;tude, and (3) excessive specuia.
ton. When it is remembered that an
these extraordinary demands had 10 pe
borne during a period OF hlsh psioss'
which considerably lessened the WORK.
ing capacity of a given capltai' IL VII
no better realized what g TREMENDOUS
strain our money market has Deeh III
aer Meanwhile the supply OF money
bas not been proportionately increased
n,,r obsolete and inelastic currency sys-
4a,n being totally inadequate 10 pres
There is still no important increase
in the supply of money in signt, mo-
CON there be until we secure seiiu'l's
o,,rrency reform and enact some 81.
,,,btanad up-to- date measure. AS 1iss'
viii NOT he done this session, IL Is u W
!. bIa that the money market VIII nav
~ struggle along as best 1t can. Fri 'e.,
are now high for merchandise as Wsn
as securities, and the volume OIL issi.-
innate business is large, WIN piospsSs'
Of continuing so for months 10 COME
n follows. then, that while funds are
in somewhat better supply tnah Delols
Ja,,,,arv and that bank reserves
ought to show an increase, sun there
win nor he ample funds available TOT
excessive speculation.
The general business and industflal
situation is satisfactory, and the VOL
,,,ne OF trade promises to be large, even !
If carried on at less profit than IN lso3 I
or 1901. Wages are in many instances
al the highest level on record ana IL
I,or is well employed everywhere, SO [
that consumption is active thruout the
1t is questionable If single |
line of industry can be found that Is
suffering from overproduction. A re-
instance of industrial activity /
is the statement that the United States
stee, CORPORATION has orders on its 1
books aggregating $4,000 tons. /
against 4,497, 900 tons the same time last
year.
Vast deals are still under way in 1
Wall street, the last being the acquisi
ton Of Reading by the Pennsylvania,
thus explaining the doubling of the lat
ter's capital OF $400,e0000O So the
anthracite coal properties are at last
under practically single. 4
management; and a further step is
made towards the consolidation of east
ern railroads. 1t may be taken for f
granted that the big leaders have con-
fidence in the present situation, such
announcements only being made at ia
yorable opportunities. Another indi-
cation of improving financial conditions
was the dissolution of the $50,o00,000 K
oan pool, which unquestianably saved
the country from a, crisis in December
After all 1T simply served to produce
1 change in sentiment, thus showing
the masterful effect of sentiment in the (
Up and down movements in Wall street
values.