Los Angeles herald., 1906-07-06
MONEY MARKET IS
GROWING EASIER
DEMAND FOR CASH GRADUALLY
LESSENING
Semi-Annual Interest and Dividend
Period Past With Result That
Banks Are Regaininu Former
Reserve Funds

Some Of the local bankers saw thev
can detect signs of an easier tendency
to the money market, and the prediction
Is made that conditions will be at prac-
tlcally the normal point within the next
thirty days.
The demand for bank accommodation
still is good but no longer of a partict-
larly urgent character or beyond the
means of the banks to conveniently
supply. There is of course always a de-
mand for money from promoters Of
purely speculative enterprises, but this
class of borrowers Is meeting with
soant encouragement at present.
For some time after the San Fran
CISCO fire bankers all over the state
were disposed to pursue a policy that
under other circumstances might have
been considered ulta conservative.
Conditions were such as to make It
impossible for them to Judge of the i'm
mediate future, and they preferred to
husband their resources until such time
as the situation showed some signs Of
righting itself
The San Francisco banks had several
million dollars loaned in this city, and
there seemed to be more than a possi-
bility that a large part of these loans
would have to be taken over by the
Los Angeleslocal financial institutions
Will Renew Loans
The cashier of one of the large Spring
street banks said yesterday that ad-
vices received by him from San Fran
cisco in the last few days led him to
believe that practically all of the local
loans held by northern banks would be
renewed at the option of the borrower
In that event one important element
OF uncertainty will be removed from the
situation here The San Francisco
banks have made a wonderful record
and in spite of the catastrophe of last
April all of them are said to be in
remarkably strong position and we'll
able to handle the situation in their
city.
Another thing that will tend some
what to relieve money conditions here
so far as the borrower is concerned is
the completion of arrangements for the
disbursement of the July interest on
savings deposits and the dividends to
stockholders. Provision for these dis
bursements, amounting in the aggre-
gate to a large sum, had to be made by
the banks, and for a time this added
certain degree of strain to the money
market.
Not only have the banks now been
relieved of this strain but a large part
and stockholders has been t.:rned back
into the banks in the form of deposits,
with the result that this item has been
swelled considerably.
Interest Rates High
Bankers say there that there is
plenty of accommodation for all legti-
mate borrowers but that there is little
or no money for speculative ventures.
n 1-at foe bnx
what above the normal for some time,
but they have not been pushed to the
point where they have imposed any
thing like hardship on borrowers, and
there is said to have been compara-
lively title complaint on that score.
Borrowers generally have recognized
the fact that conditions We're slightly
abnormal and that the banks were JUS
tilted in pursuing policy of caution.
AS usual, however, these conditions
were merely temporary, and the indi-
cations now are that a little more liber-
ality on the part of the lenders will be
shown in the near future.
In this connection it is interesting to
note that the interest and dividend dis
bursements this month for the entire
country are among the largest on
record.
The grand total is $15S, 049, ,292, which
compares with $140.3 ,536 for the same
month last year, showing an increase
of $17, 1877 1855.
This total is made up of $74, ,499, ,452. in
dividends and $S3,555, $40 in interest.
Dividends have increased $13, ZIG, 916
and interest payments $4,020,S40.
The former big figure is chiefly due to
additions representing new dividend
payers and more generous payments by
| others.