Omaha daily bee., 1903-03-16
WEST IS USING The MONEY
This with Funds Locked Up in Big Enter
prises Makes Tight Market.
PANAMA PAYMENT NO CAUSE FoRwoRR Y
shrinknge in Price of Leading Rail-
roads from Top Figures OF 1902
to from Twenty
TO Thirty Points.

NEW YORK, March 1~5.-(Special.)-
Henry Clews in his weekly market letter
says:
Monetary conditions have at last had
their effect upon the stock market, and the
situation is now working out its own cure
Oy natural and effective means. Liquida-
ton has been severe, and I'm some cases In
t%ensiied by personal differences; but the
money supplies through the locking up of
large sums In financial operations, which
would receive scant consideration II pre-
sented now In their original form. Although
the situation has been greatly Improved by
the heroic treatment of the 'ast few
months, and the credit situation Is much
stronger th6l a year ago. Ii would be pre-
mature to assume that the turn has come.
IL Is practically certain there will be no re
required for April settlements find their
way back again 10 the banks. and this is a
matter of several weeks. The west is
money market. and this year its regular re-
are unusually heavy owing to
The large volume of business. A great land
speculation Is In progress in the west and
very large numbers of settlers have taken
zip new properties on which large pay
that the return movement Of currency may
be not only backward, but smaller than
usual, thus preventing low rates of inter-
est here for some little time ahead.
No Cause for worry.
n kObu htd VI unnecessary COlCeTn mas
been excited by the prospective payment of
$780, 1000 TO France for the Panama canal.
In all probability that payment ' Ill not be
made before midsummer, and the full
amount, including the $l0,O0O,0OO to Colom-
Ibia. will most likely be paid out of the
treasury without touching the government
deposits held by the banks. The treasury
now holds 81, 100000 in addition to the
amount deposited in banks, and judging by
the heavy customs receipts, which promise
to continue, that sum will be very consider
ably augmented before the canal payment
becomes due. This transaction when COM
pleted Will, therefore, contribute to ease
rather than make ~stringency in the money
market. While in the yreasury this 10000
900 or $O,OOO,O0 VIII be unavailable, when
released IT will probably go to the Paris
banks and there eventually reach the
money market, or IL interest rates were
high the owners might find II more profit
able to temporarily use the funds in this
likely to make little or no disturbance in
this market, and the exchange required
will probably be provided well In advance.
Such operations are always discounted by
shrewd bankers, who for the small profit in
such operations act as invaluable balance
wheels against extreme movements. The
only unpleasant feature in this connection
is the steady absorption of funds by the
treasury through customs receipts; but
this movement is in no sense due TO the
monetary situation ought to take place
after the middle Of April, yet loanable
funds are likely to continue more or less
scarce throughout the month of April at
Strengthening trust company reserves must
not be overlooked. Credit is In better shape
than for many months, though we are by
no means out of danger in this respect.
S~hrinkaEes in stocks.
Drtcas of sacrrtt{as - aau, ,o,.yaa.ohly,