Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-29


TREASURY AND THE MONET MARKET.
Secretary Shaw's announcement OF
the deposit of s26.OOO, 900 of treas
ury surplus funds with depository
banks has been made, according to
expectation. as soon as the gold Inn
portation operations under treasury
aid effective two weeks ago dwindied,
and financial adjustments in the mean
time have proceeded on that basis.
With the gold previously engaged,
the amount. brought in within the
fortnight. or on the way but immedi-
ately available, is nearly $4,000, 900,
making the total addition OF cash in
hand for business through Treasury
facilitation, IL the import be wholly
credited to the treasury, Of fully $685.
000, 900.
The relief has been marked, but a
severe though not feverish condi-
ton still exists in the money market.
From extraordinary depletion below
the legal limit ten days ago, the New
York bank reserves are now well
above 1t, and whereas the call rate
was zigzagging between 1 and 80 per
cent, it has settled close around per
cent. with small likelihood Of sudden
advance. Yet the serious fact re-
mains, notwithstanding the loans of
the New York associated banks are
$40, 100000 less than a year ago and
reserves higher, that the time inter-
est rate on sixty and ninety days
holds at Z to IN per cent, with q
strong rising tendency. OF course the
tension of the time rate is more
restraint upon the general mercantile
community than on the stock market,
Obviously the treasury's operations
are aimed to relieve the former,
fact that is emphasized by the wide
distribution of the secretary's de-
posts to interior banking centers as
well as by his preceding formal warn
ing to depository banks against trans
fer of their funds to speculative GEN.
ters.
The necessity Of simultaneously
financing an unprecedented crop move
ment and prodigiously expanded In
dustry and commerce, together with
a corresponding stock speculation,
precisely at a time, too. when new
law OF New York was compelling
trust companies greatly and perma-
nently to increase their reserves, in
evitably increased vastly the money
market strain which is always marked
at this season of the year, and ex-
ment of $55 900 900, while materially
lessening, does not abolish the pres
sure, which must persist for months.
There is also the possibility that an
other denouement like the recent d.
vidend exploitation In the Hartman
group of stocks may start another
great speculative bull movement alb
sorbing immense amounts OF cash that
business urgently needs.
However, further resources remain
for any probable requirement. The
limit of gold importation has not been
reached, although 1t is recognized
that naturally no great amount of new
gold will be brought in. But out Of
treasury surplus of nearly $4,000
600 the announced $26,0O0.000 de-
posit could be duplicated, II 1t became
necessary. Beyond that, the treasury
could anticipate the redemption Of at
least part Of the outstanding 1907
national bonds These facts therefore
AFFORD reasonable assurance on which
the business community can rest
firmly, and early In December the re-
turn current from western crops and
other realizations will begin again to
heap up money in the great eastern
centers of deposit and settlement.