Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-03-02
MONEY IS IN DEMAND
Careful Plotting by Bankers
Necessary to Avoid Squeeze
Borrowing Heavy
syNDlcATEs ABSORB MILLIONS
Henry cIews Believes That Banks Have
Loaned to Their Limit and Must be
conservative-No Booming Of Stocks
Possible = Business Continues Ac-
tive-Monetary Legislation.
tive-Monetary Leaislation.

view of financial condi tons issued by
the banking house of Henry CleWs &
Co. today says:
AS to the money market, the situa-
ton is not entirely satisfactory, In
these advices the necessity for a con-
servative policy on the part of those
controlling the credit situation has
been repeatedly urged. Last Saturday
the loans of the associated banks rose
to $950,0O0,0O0, the highest figure on
record by $12,OO0,OO0, while the surplus
reserve fell to $9,0O0,OOO, which is much
below the average usual at this season.
1t is very plain, therefore, that some
careful plotting will be necessary until
the demands of the next harvest are
satisfied, to avoid difficulties In the
money market.
AS already pointed out preparations
for trust company reserves and the
Panama canal payments are likely to
make a considerable drain upon re-
sources. AT the same time the treas
ury continues to absorb funds; gov
eminent deposits in the banks are al
ready sufficiently heavy 10 be an ele-
ment of important uncertainty, and the
treasury, having exhausted its relief re-
sources, will not be able to afford the
assistance next autumn that it rendered
last year. The Aldric!l bill will pro-
vide considerable relief, and tho not a
curative measure by any means should
be passed by congress without delay, If
only to counteract the i'll effect of gov
eminent operations in the money mar
ket Since there is little or no prospect
|of obtaining a sound bank currency
law during this session of congress, 1t is
all the more important :i,at the Aldrich
bill should be adopted as a precautions
airy measure.
Legitimate requirements for money
are likely to be very heavy during the
remainder of the year, and corporation
too large scale to allow Of any
booming stock speculation on top
of present prices. The monetary sit
uation would undoubtedly be improved
by gradual liquidation in stocks; al
tho a downward movement of any
sharpness would meet with strong re-
sistance by those who control the
market, and who still have large hold
ings with which they are ready to part
on higher level of prices A vigor-
Gus downward movement would also
be discouraged by the strong banking
Interests who have new contemplated
issues, of which considerable may be
expected during the next year or two
If our railroads are to keep pace with
the pressure of traffic which the growth
of the country is imposing upon them.
Nevertheless. as already said the mon
ey market is going to be the controlling
factor for some time to come, especially
until after the April settlements, when
a period of temporary relief may be
anticipated.
General business continues active.
Liberal increases in railroad earnings,
following the phenomenal gains of the
past four years, emphatically testify
to this. The only complaint heard is
the increased cost OF doing business
and the consequent diminution of pro-
fits. This complaint is general not
only among individuals. but is shown i'll
the current reports Of industrials and
railroads. An event of much business
significance is the estimate of the iron
ore producers of an output this year
of "a million tons, an increase of mil
lion tons over last year, and an agree
ment to advance the prices of ore.
There is an immense amount of new
iron tonnage in sight, and whether
this advance will check the demand or
not remains to be seen. With the urgent
requirements of the railroads to be
met, it seems very probable that the
iron boom" may last another year.
surprising the dreams OF the widest
enthusiast in it's duration. Specula-
ton promises to run in moderate lines
for some time to come.