Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-02-09
TIE FINANCIAL REVIEW
Gold Shipments Delayed but the
Monetary Situation Is
Much Improved
CONTINUED LARGE IMPORTS
These, and the Movement obIisins the
Trust Companies to Carry Reserve
Are About the Only Uncertain Ele-
ments in the Monetary outIook-The
Value of Reserves.

MS weekly financial review says:
| The best feature in the stock market
| is the improvement in the monetary
situation. All indications now point to
comparatively easy money until the
usual demand for currency sets in next
fall, excepting of course the temporary
disturbance incidental to April settle
ments which usually reaches it's CHI
max the middle of the month. Currency
Is returning more freely from the in
terror and bank reserves show a rising
tendency in consequence. Legitimate
trade demands are large, but these are
speculative operations continue on as
limited a scale as at present. There
has been more or less expectation of
gold shipments; but these have been
delayed by several considerations. In
the first place, our commitments
abroad, tho Still large, have been much
reduced; in the second place, the prin-
cipal foreign money markets are COM
paratiyely easy because both the French
and Transvaal loans have been tempor-
rarily postponed; and, finally, our ex
ports of domestic produce have been
sufficiently heavy to ward off any out
ward movement of gold. The French
loan, which was expected early in 1903
seems to have been indefinitely delay
ed, apparently because of unsatisfac-
tory domestic political conditions: and
the Transvaal loan when 1t appears is
not likely to create any disturbance,
being largely a. matter of turning
temporary certificate Of debt into a
more permanent form.
About the only uncertain element in
the monetary outlook, so far as our in
ternattonal exchanges are concerned, is
our continued large imports. These
are now running very heavy, and seem
likely to remain large for some time to
come. This is a perfectly natural Sc
quence of the high level of prices now
prevailing in this country; it is one of
the inevitable establishments that al
ways follow abnormal conditions. Eu-
rope has been depressed and prices are
low. America has been progressing
marxelously and prices are. high. Prices
like water, seek their level; hence we
may look for large imports until con-
lied, either by a drop in prices here or
a rise in values abroad.
There is just one other factor in the
situation that might possibly affect
the money market unfavorably, unless
good judgement prevails, and that is
the movement obliging the trust COM
panies to carry reserve. This is
step in the right direction, and one
already in effect in concerns which I
place sound banking methods above
the desire to present record breaking
statements. All the trust companies
should be obliged to carry reserve.
in their vaults of not less than peri
cent. A somewhat greater sum would
DO no harm; but If anything beyond
per cent is imposed it should be done
gradually, as the sudden locking up of
s40,000,000 or more of reserve would
,reate a very undesirable and unnec-
,ssary stringency. The value of re-
serves is to really use them in emer-
,encfes. and as long as the trust COM
,anies remain deficient in this respect
hey will be an inevitable element Of
weakness and suspicion. The movement
s an eminently proper one, and if
onducted on reasonable lines will serve
o strengthen confidence where it is
most needed. 1t is one of the most
movements of the day.
Stock exchange transactions contin
lie on moderate scale, the daily
hanges being chiefly the result of
professional operations. There is a
ontident undertone to the market. but
he absence OF leadership is not con-
lucive to activity. The situation is
ntirely in the hands of those whose
interests are on the long side. There
8 no chance of successful bear cam (
'aigns while business continues SO ac-
i've and stocks SO concentrated. Those
n control are evidently satisfied to al
DIV the market to rest and harden
In natural fashion, until
onditions call for renewed operations n
80 long as this state of affairs lasts
We seem likely to have a safe trading
market. in which good stocks can he
rofitnbly bought on declines and sold
n sharp rallies.
a. nj I