Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-09-17
Gold Imports Have Caused a Dis
tinct Improvement In the
Monetary Situation
CROP ANxlETIEs ABOUT OVER
The Largest Wheat and Corn Crops in
the History of Country Are Being
Harvested, and Second Largest Cot
ton Crop on Record Is Being Har-
vested-Bis Demand for Products.

New York, Sept. 17.-The monetary
situation has been distinctly improved
by gold imports. the engagements last
week amounting to about $20,0oo,ooo
Good authorities estimate that we
shall be able to draw at least $30,000,-
600 from London this year. if not more.
1t is also possible that we may secure
assistance from Paris if needed, where
funds are steadily accommodating owing
to the inertia arising from political
and socialistic agitation. Gold imports
have of course been fastened by adj
vances of government funds to national
banks importing gold. The govern
with interior banks tended to relieve
the strain in the money market I'm
til this last step was taken the treas
ury, sthanks to our clumsy currency
methods. had locked up about s43,-
100000 more than year ago, all of
which might have been in the banks
lubricating the channels of business,
but for the ignorance and inaction Of
congress.
Last week our bank reserves touched
the lowest point in many years. 1t
should also mark the lowest point for
the current season. BY means of gold
imports, treasury advances, govern
ment deposits and contraction in loans,
bank reserves must show much i'm
provement Recent stringency had
been long foreseen, and many borrow
ers protected themselves accordingly.
Moreover stock market requirements
have been considerably provided for
abroad, which does much towards ex-
planning recent indifference of this
market to local stringency, and which
will also leave our home banks more
free to deal with legitimate home re-
quirements Thru such means of re-
lief the pressure upon the local mon
ey market has been considerably abat-
ed; and. unless speculation should
be unduly manipulated, the worst
of the money squeeze for the present
should be over Firm or even irreg-
ular rates may be expected; for this
seasons demands are certain to be
extraordinary, and the inelasticity of
our currency system makes this the
most erratic money market in the
world
An interesting element in the rail-
road Situa ton is the partial selling by
Pennsylvania of its holdings in Bal
timore & Ohio and other parallel lines.
Incidentally this may be beneficial TO
the company in providing large
amount of cash at convenient time
in view Of the enormous improvements
under way and the large increase in
the companys' obligations AS a mat
ter of railroad policy, however, it is
more significant. Apparently this step
was taken to avoid conflict with the
new national railroad law, which seeks
to prevent the purchase of competing
lines by one of the competitors. If this
be true other railroads will have to lof-
low suit, and the consequences of this
undoing will be watched with extreme
Interest. BY one process or another
the Community of interest" is grad
<ually disintegrating. Fortunately the
new law stops rebating and other I'M
sound methods, but some of our big
railroad magnates will have to modify
the ideas they held a few years ago
about railroad competition and consol
idation. This country will not tolerate
any great railroad trust whether run
by few powerful financiers or by the
government itself. Another result of
this policy will be to restore some of
the important minority stocks to their
former voting status and stock mar
ket activity.
Crop uncertainties are about over,
and we are harvesting the largest
wheat crops in our history. We are
also promised the second largest cot
ton crop on record. For all our prod
ucts we are insured a big demand at
ucts we ar ENSURED a big demand at