Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-10-16
Decline i'm Both Call and Time
Rates to 5 3-4 to 6 Per Cent
Is Recorded
GOVERNMENT CROP REPORT
October Returns Arc Satisfactory,
With Record Breaking Corn Crop
Shown = Reduction in Wheat Over
Big Crop Of 1so1-Any Crop Failure
in 1907 Deemed Important by cIews.
Special to Times-Republican.

Special to Times Republican.
New York, Oct. 16.-The best feature
in the financial situation is the easier
condition of the local money market.
Both call and time rates have declined,
six months time money being quoted
at 5s.p6 per cent-the lowest rate
since the crop movement began. This
relief u.s. Of course, due to gold imports,
treasury disbursements and a proba-
billy that the efflux to the interior has
reached its height. From now on cas-
Ter local conditions should prevail and
bank reserves should rise until the end
Of the year, provided no disturbances
occur during the interval and the shift
ing back Of American loans in London
does not proceed too rapidly.
The Bank Of England rate was adj
vanced from to 5 per cent, and the
Bank Of Germany from to per cent.
These are extraordinarily sudden and
high advances by these two institu-
tons. They have but one meaning:
that u.s. notice to New York that those
markets are closed to us for the fTlan-
cial relief upon which he have hitherto
depended Fortunately we are now be-
yond the necessity Of assistance from
that quarter, having secured over $780,
100000 of gold this autumn, SO that
the precaution u somewhat tardy and
Intellectual. Nevertheless, the action OF
these two conservative and very in
fiuential institutions Is significant and
cannot be wholly ignored; for interest
rates have advanced in all European
centers. 1t Is plain we will get no more
gold from Europe except un-
der extreme pressure, and that
q further extension Of Ameri-
can credit in those markets could
only be made with difficulty. In this
connection it is worthy Of note that
during the next few weeks and it will
be interesting to observe how these OBJ
legations are to be met. It is under
stood that considerable amount of
American securities have recently been
returned to this market, presumably
collateral put up against foreign loans
which have been liquidated or retrans-
ferred to this side, since no extensive
foreign selling of Americans has been
detected. One thing is certain; there
must either be, or has been. liquida-
ton Of American loans abroad, which
have been, or will be, transferred back
to New York. 1t Is to be hoped that
considerable amounts Of these loans
have been liquidated. The supply OF
export commercial bills has been lib
eral, altho recently somewhat curtaiI-
ed by the advance in cotton. The New
York money market il IN no condition
to make any further important sxpan-
sion in loans; and, If prudence prevail
ed, contraction would be the order OF
the day in order to strengthen reserves
and 10 ensure recovery from the pres
ent over extension of credit which pre-
walls in all parts of the United States
The October government crop re-
port was highly satisfactory. indicat-
ing q record breaking crop of corn
amounting to ,7so,O0o0o0, or nearly
SO. 100000 in excess of last year The
wheat crop shows reduction Of aboul
20, 00O, 900 from earlier estimates, but
the yield is still expected to reach
nearly 740,oo0,00O, or only about 8,0O0,-
900 bushels less than the high record
crop of 1901. Some damage has been
done to the cotton crop by the recent
southern storm, yet the promise is for
full YIELD so there is nothing to in
terfere with continued prosperity for
this season What the next season
may bring forth will be matter of
extreme importance. After such long
succession of good harvests, it seems
almost too much to expect another
good. year of such good fortune. Sit
uated as we are upon high pinnacle,
any crop failure in 1907 would be a
matter Of more than usual Importance.
That, however is a question too far
ahead for present consideration.
HENRY CLEWS.