Waterbury evening Democrat., 1904-10-12
THE OLD STORY.
Eastern Banks Have to Bear Most of
 the Burden.

Eastern Banks Have to Bear Most Of
 the Burden.
 Each summer of late we have been regaled with pleasant stories from the west to the effect that the bankers out there were coming into their own atslast, that they were abundantly supplied with immediately available funds for local use and that conse- quently there would not be the old drain on eastern money centers when the time for moving the crops arrived And each fall the stories have been found to have little if any foundation and the eastern banks have had to bear the most of the burden again. We may now see that this year is to be no exception. Once more there must be heavy shipments of currency from New York to the interior, with consequences in the countTy's general money market which must be reck- oned with in all business calculations.
 The complete statement of the con- ditfon of the national banks, required under the comptroller's September call, is not yet ready. But enough has been disclosed to show that the western banks are not overfiowing with money; in fact, as a rule their reserves are smaller than they were in June. Evidently they have not been trying or not been able to prepare themselves for the independent carry ing of the crop business. With all their boasting, when the pinch comes they are forced as usual to draw on the east, as may be seen in the loss last week of nearly eight and a half million dollars in cash by the New York Clearing House banks. This is two millions more than the most pessi- mistic predicted, and it can be attrib- uted to nothing else than transfers of money to the west The familiar fall movement of currency has set in once more, and in more than usual volume.
 The dependence of the west having been shown to be about as great as usual, there are obvious reasons why the volume should be larger. One only need be mentioned-the fact that we are to have this fall the highest general range of prices for agricultural products that has been reached for years, which will of course require more than the usual amount of money to move them. The requirements will be met, no doubt, but while the pro cess is going on money must necessar- fly be higher and there can be no great activity in the stock market and no sustained advance in security val ues. A good part of the bank reserves in New York consist of deposits by interior institutions and will pres ently be steadily drawn upon, though already the bank surplus is barely a half what it was three weeks ago. The government, which sometimes mas been able to mitigate the severity of the strain, can do nothing this year; indeed, with its revenues running very low it may have itself to call on the banks for funds before many weeks. Late in the year there may be some gold coming from abroad in payment for cotton, but Of other agricultural products there will be little to export.
 Altogether, then, it is the old story in rather intensified form. There is nothing new to be said, of course, of the causes that underfie this annual disturbance or of the various possibil- ities of ultimately removing them. For the present we may only note that it is upon us and prepare as best we can for it's consequences, one of which began to materialize last week when the rates for call loans in New York. after long resting at one per cent and less, rose at one time to two per cent, at which figure fair amount of money was taken.-Proyi- dence Journal.