Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-09
BULLS AND BEARS

Special Dispatch to The STAR
NEW YORK, October e.--Robert Good
body Co. in their weekly market letter
say
I'VE hold the money situation to be that
the banking capital Of the United States -
fully employed. trade being active. and that
the present rates OF money at this season
are the natural effect OF active trade.
The country il blessed with very good
crops and will get fair prices for them, and
consequently the SPECTATORS for the rise.
who are generally rich men. are confident
and prefer to pay good rates for money
rather than let go. The process by when
money Is dearer each year from the end OF
September to the middle Of January Is. we
think. not very clearly apprehended by peo-
pie anywhere. It is the custom to say that
1t goes to remove the crops, by which, we
take 1t. people understand It goes to har-
vest the crops. but surely a very little re-
Election will demonstrate that this does not
square with fact. II money went from
New York to harvest the crops In guam
tity sufficient to affect rates in Wall street.
It would go in the early part Of July to the
winter wheat states and in August to the
spring wheat regions. In neither month
has there ever been any large movement of
capital away from this center for the pur-
pose. What does happen Is that when the
farmer wants to turn his wheat into cash.
capital is required, but not unless the sell
lers of the grain want to buy other goods
or supplies, or to invest in the buildings or
some other part of property that uses up
labor. When the farmers do desire to do
any of these things the money markets
here have to supply the capital. and rates
advance, and relief can only be got by self
ing the stuff the farmers have sold abroad
capital Is used up, not by the moving OF
crops, but by the purchase of other COM
modities by the growers. Therefore, the
greater the purchases the more capital Is
used up, and there is always capital so en-
ployed until the crop is eaten up. There
fore. so far as this cause Of dearer money
goes, money Is in greatest demand for legit-
innate purposes about the list OF December
each year. For then the largest proportion
of the grain and cotton crops Is unused
when these crops are good.
Charles w. Osborne, confidential man of
Russell Sage, says:
II think the prospects for general bust
ness are exceedingly good I look for &C
tivity in all lines Of trade this fall and win
ter Consequently think that money Will
be in active legitimate demand. Business
may be interrupted by what Congress may
do. That Is the only stumbling block SO
far as can see. AS for any bottom in the
stock market. it. is a question which will
have to be decided by the people who have
more money than I have"
The Wall Street Journal asks a very per-
tinent question regarding bank reserves,
and one that has been much discussed
to count as part of its reserve money which
is due to it. but which Is not yet arrived?"
This question is well open for discussion
Suppose that bank counted as part of its
rnc al vu,l,i aL It'll.
to 1T from Australia. 1t would take such
gold several weeks to arrive. During the
time of transportation many things might
occur, even panic, which might render Of
San Francisco might have plenty of money
coming to him from New York. but If he
had none in his pocket he might starve be-
fore the money arrived
Concerning the question of gold imports,
which is made more important through the
advance in New York money rates, the
London Statist says:
1T Is not to the interest of the states to
cause serious disturbance to the london
money market. In the past week some
ESO0,O00 sterling in gold has been pur-
chased in the London open market on the
New York account. For some weeks past
all gold arriving here from South Africa
and Australia has been bought for the
states. We should welcome an outflow Of
gold to America under normal conditions,
states should take gold from London at an
inconvenient moment, especially when there
is no real necessity to do So II New
York desires to assis- rather than to dis
turb London 1t can do by obtaining
from the Secretary of the Treasury the de-
post of an additional sum of about 10000
OO0 sterling, which would be more than
enough to enable New York to meet the
balance of demand for currency Of the
country and to refrain .om taking any
more gold from London.
I'm brief. it is desirable that we should
check the demand upon London for gold
for New York and from Paris and that
the French and American bankers to assist
In the operation; otherwise a further adj
vance In the bank rate in the early future
to per cent will become unavoidable.
The plan to consolidate independent tele
phone lines throughout the country out
lined at the meeting of the United States
Independent Telephone Company has been
lows
THE formation of the United States In
dependent Telephone Company Is the first
step IN the movement to furnish telephone
with guarantee that the supply cannot
be cut off through the absorption of manu-
featuring companies by the Bell interests:
to knit together in connecting systems the
independent telephone lines of the country
which unappreciated the fact may be
In the east, today considerably outnumber
the lines owned or controlled by the Bell
Telephone Company, and to aid independent
telephone companies in the installation of
their plants and improvement of their SER
vice. There are today over 5000 telephone
companies In this country independent of
the Bell systems. In response to the demand
of these companies for product and ap-
pliances, and for a centralized UNITY of
action, the United States Independent Tel
ephone Company has been Incorporated.
The independent telephone lines represented
directly Or indirectly by or through one or