Omaha daily bee., 1903-02-09
MONEY CONDITION BETTER
Currency Returning from Interior and Bank
Reserves Increasing.
IMPORTS ONLY UNCERTAIN ELEMENT
Heavy Customs Payment Means the
LOckinE IN Of vast sums IN the
Public Treasury which Docs
NO Harm Now.

NEW YORK. Feb. s-(speciaI)-Henr
Clews in his weekly Wall street letter
says:
The best feature in the stock market is
lhe improvement in the monetary situa-
uon. All indications now point TO com
paratlvety easy money until the usual de-
mand for currency sets in next fall. except
ing, Of course, the temporary disturbance
Incidental to April settlements, which
usually reaches its climax the middle OF
the month. Currency is returning more
freely from the interior, and bank reserves
show a rising tendency In consequence.
Legitimate trade demand are large, but
these are readily met 80 long as syndicate
and speculative operations continue on as
l.mtted a scale as at present. There has
been more OF less expectation Of gold ship
ments. but these have been delayed by
several considerations. In the first place
our commitments abroad. though still large,
nave been much reduced; in the second
place, the principal foreign money mar
kets are comparatively easy because both
the French and Transvaal loans have been
temporarily postponed and, nnally, our
exports Of domestic produce have been
suthciently heavy TO ward of any outward
nave been indefinitely delayed, apparently
because OF unsatisfactory domestic political
appears rs not likely to create any disturb
ance. being largely a matter OF turning q
temporary certificate of debt into a more
Only Uncertain eme
About the only uncertain element IN the
monetary outlook. so far as our interna-
tonal exchanges are concerned. is our con-
tinued large imports. These are now run
ming very heavy, and seem likely to remain
large for some time to come. This is a
perfectly natural sequence of the high level
Of prices now prevailing in this country; It
Is one OF the inevitable readjustments that
always follow abnormal conditions. Europe
has been depressed and prices are low.
America has been progressing marvelously
and prices are high. Prices, like water,
seek their level, hence we may look for
large imports until conditions have been
more nearly equalized. either by a drop IN
prices here or a rise in values abroad.
Most likely It will be a decline in values
here that will first check the growth Of i'm
ports; but until that happens we must be
prepare 10 consider the effects Of this in
hux, one Of which will soon show itself in
largely augmented customs payments and
the consequent absorption OF funds once
more by the treasury. This is a contingency
that should not be lost sight OF: Il may
cause no harm during summer ease, but
when the autumn demands again begin the
pinch Will surely be felt. until congress does
Its duty and meets the now very popular
demand for an elastic scientific currency
system. How sensible politicians, with a
desire TO be returned by their constituent
cies' can overlook this necessity is utterly
beyond comprehension, except on the score
OF ignorance OF the country's real ne, hs.
The people are rapidly learning that such
a measure is in the interest of the Dor
rover and national development, and not
solely in behalf OF the banker. A very re-
ma 49, NAA1AA6N Va sNAAAAAIAA WI AAAiS Sun
ject is finally coming over the south. once
the stronghold of silver h~eresies: and "
seems. like sheer folly for congress not to
take heed. Should the country be called
upon 10 sun II from this neglect 1t is easy
TO say upeu whom public vengeance would
fall.
May Eject Money Market.
There is just one other factor in the sit
uation that might possibly affect the money
marRet ~unfavOrably, unless good judgmen
prevails, and hat is the movement obliging
This is a step in the right direction. and
one already in effect In concerns which
place sound banking methods above the de-
sire TO present mountaineering statements.
All the trust companies should be Obliged
to carry a reserve in their vaults Of not
less than 5 per cent. A somewhat greater
SUM would do no harm, but II anything be-
yond 5 per cent is imposed il should DC
done gradually. as the sudden locking VI
create a very undesirable and unnecessary
strlngency. The value of reserves is to
really use them in emergencies, and as
long as the trust companies remain de-
hcient in this respect they will be AZ in
evttable element of weakness and suspicion
The movement is an eminently proper one
and If conducted on reasonable lines will
serve to strengthen confidence where II is
most needed. Il is one of the most reas-
surfing movements of the day.
Stock exchange transac tions continue or
a moderate scale, the daily changes being
chiefly the result Of professional operations
There is a confident undertone to the mar.
ket, but the absence of leadership is moi
conducive to activity. The situation is en-.
tirely In the hands of those whose interests
are on the long side. There Is no chance
of successful bear campaigns while bLsi-
ness continues so active and stocks Sc con.
centrated. Those in control ara evidently
satisfied TO allow the market to rest anC
harden gradually in a natural fashion, unit
conditions call for renewed operations. Sc
long as this state of Rfsirs lasts We seen
likely TO have a safe trading market, IN
which good stocks can be prOhtably boughi
on declines and sold on sharp rallies.