The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-21

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mustsfH Impfyvei Msfhssis n fsFHlns
fhaf isd ssafhef ~ aaa suHftsn q nAaet
~ ehFsl ee4fkrf IN afufhef fnd lhaf ~
efsafesi fsauafl n ~dlHinughH IN NJ hafVcat
Nv gHsf y stiiai ~ ~sslvefas sefauT fsunHHta
~ aaiy veey M1ls - ~ me csas ~
IN rYpgef tfaA ~ suttyye N evefg Hhe
N epaeul tiatas Nv lHa edtnftfY ssa
never H,oFp fnFittasa fhaa N Ne pFeaent
hBuf Whrn tefHfr ~ iHlS giHe n thr yeas
haqs ihe tUnHa ~ i've tNifest stafea steel
C1fpufftlnh sht Tire GftsF aFsaf steel aHsi
lrfr manUftetuflne eumpantes shaNn an
ggar 'Rtts asnnWif ~ ~ lefa nv steei esiia
nv delivery IN the yeag f1lhsslue N t,a1yno
iuss7 fbla insanity 70 N noge,i. fefers
NM Nv fhe artsfs alfrfdv tUgieh foe 10
livery IN me presrnt seee bot Nv ne sftrcerds
ina tseivr hsonths y = lhslsef oHlrfHlly
s,ate,i that ihe total vci1snc ~ orieff
atruun's ~ Fo.te0 ioaa moro thaa lhe
sntlre production IN steel faitr N he tgfte,t
STATES In no yrss ies There has teca
'tesr talks IN Ire financial di-tfirt about
the 0uantlsy ~ ncw seourities f~er,ly
latpNg ~ tho ftiifdad eosmpanicu ~ rsiae
nsapsv Tor thrse auypiiea and faF slfnllar
exr~ndNur-s and We should MT Thought
10 tahen ~ the fact that all this construction
has tcen fotccd o n the railroad com.
paniea Nv tho pressure ~ new business
and that II wda absolutely neccssa " for
thu ,rdilrood companies to direct that "
should 10 dn-c unless they were to take
the ground thlt tho industries ~ tho coun-
try uhould not te permitted 10 develop
fnrthcrI
The money situation. too. seems to he
imncfclv improved. Affair IN this line
arr Away complicated whom the "details
concerning them are considered; but their
expression ssNtle= down, after all. In rates
for the Use ~ funds. Cali money IL TO he
had for the asking at . OF az per cent. and
time money u offered nov. In the financial
district for use until after the frat Of next
January for 5 per cent, or even under;
while ~ per cent. Is about all that can be
obtained for the shorter maturities. With
the rates for the use Of money in the open
market at these fg,lreg, ban the prices
OF the standard railway shares be said
to be high when 30 quoted as 10 yield an
interest return averaging ID the ma jority
OF cases perhaps ~ per cent, with the
probability that within q little time
this yield will be materially increased?
Invariably in time Of business activity
in any country rates for the use Of
money for general purposes are higher
than rates Of interest on investment or
embarrassment stocks. and a. long as
violent disparity between these rates is
presented the argument is not worth an
in~stant's consideration that the difference
between the two should result in lower
prices for the securities concerned. There
we're two things last week that seemed very
clear concerning the financial situation.
One Of these was that money was point
ing here from every part of the country.
This is the timo of year when money nat
urally comes here, incsmuch as the finan-
cisl necessities for the spring planting
season are over and demands for money
for business uses show a normal slack
TIL other was that everywhere
In Europe there is a disposition to regard
tho claims Of American borrowers upon
the international money market this
year az having an entirely proper INT ex-
oeptional justification. II Is recognized
abroad that the trouble in San Francisco,
taken with the pushing state Of business in
general with us, gives us q right to ask for
credit at the hands Of European money
lenders in a way that we could not otter
wise do, In France especially the force OF
pleas is admitted, and the French
bankers are unloosening their purse strings
In our behalf with great liberality; while, in
tho meantime, our own merchants and
are making exchange for us in the
market with great rapidity. Fer
April the excess of the value Of our exports
over imports was ss7 ,l84 ,s11, and for the
ten months Of the fisoab year to date $751;
S22 ,l0i. This Ia the largest trade balance in
our favor for q similar period within the last
years, and greater than that for the first
ten months Of the last fiscal year by nearly
sl2s, 900. goo. The foreign financial reviews,
commenting upon this, declare that 1t is
evident that when the loa ms and bills that we
have recently created abroad mature we will
be able TO meet them by our exports Of COM
nodities, not TO speak OF our sales to for-
signers Of high grade securities. Finally,
Is the banks In San Francisco will open for
business next week, the time annot be long
when money will begin to return
here from the Pacific Cosst; and the hour
approaches, full Of favorable meaning
o Wal Street, when Congress must adjourn.
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