Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-28
Demands of Railroad Men.

There were some other Developments OF
the week calculated to repress speculative
demand, although most of them were the
natural outgrowth of the high pressure
of prosperous activity In all departments
OF business and industry. Such were the
formulated demands upon the railroads
of organized bodies of their employees for
higher wages and shorter hours. Another
result of the countrys enormous traffic
was shown in the shortage of cars whica
has become so marked, threatened block
AIDES and shortage of material for carrying
on production in some important lines.
Grain men complain that some OF the rail-
road companies refuse to receive grain for
transportation putting TEN to embarrass-
ment to meet contracts for delivery. The
iron trade reports scarcity of iron for de-
livery and the pressure for early deliveries
of copper.
Most important of the facilities OF COM
merce of which the available supply shows
indications of strain is money, as for some
time past. The main pressure has shifted
to foreign money markets, but the effect is
transmitted through all markets by the me-
dunn of the exchanges Interest centers
on the Bank of England as the best index
OF the situation. which is world wide. That
institution has had only partial success In
shifting the demands which were eating up
Its reserve to other interiors. Notwith-
standing the drastic measures of Q per
cent official discount rate, which was
ADOPTED last week, thlS weeks return of
the bank shows a decline again in the pro-
portion of reserve to liabilities both by de-
crease in bullion holdings and by increase
In loans. Its reserve continues near to the
S9O.OOO.OOO level, which Is regarded in itself
as danger line for this season Of the year.
Loans Low; Deposits High.
Not only is the absolute reserve at fig
ure lower than for October since 1893, but
the deposit account Is unusually expand
ed leaving the proportion Of reserve to
liability at but 1864 per cent. The Lon
don Statist points out that the average
loss in reserve of the Bank of England
from the middle of October to the end Of
the year for the last five years reaches
over So, 800 COO This year there are extra
demands to be met. especially the heavy
movement TO Egypt to meet inflated specu-
lative conditions there. The Bank of Eng
land p.oclaims its inability to meet fur
Their demands at this time and Its urgent
need, In fact, OF recuperation
The Bank OF France is indisposed to
take share of the burden. although
IL did not advance it's official discount rate
this week as was feared. But 1t exercised
Its privilege to supply demands upon it to
withdraw bullion by proffering silver in
stead of gold.
The New York market Is known to be
largely indebted to London in the form of
finance bills held by London bankers.
Large amounts Of securities have been
held in London also for American account.
The weeks stock market settlement in
per cent to carry these holdings over to
the new account. The consequence was an
extensive closing out of these accounts
In London and their transfer in some cases
to New York.
Checking Gold Exports
maturing finance bills are also causing
pressure for their liquidation. and these