The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-12-14
SHAW OFFERS LITTLE RELIEF
Release Of 100000 From
Treasury Dec. Is.
BANK RESERVES ARE Low
AND THIS TOO IN THE FACE OF
THE ENORMOUS INCREASE OF
OF MONEY.
BANK RESERVES ARE Low

NEW YORK, Dec. 14-Secretary
Shaw's efforts to relieve the financial
situation were disappointing and had
practically no effect upon either stocks
or money. The latter continues to
command almost exorbitant rates OH
the stock exchange, and there is little
prospect of substantial relief until the
middle of January. Secretary Shaw
has agreed to release 100000 on De-
cember Is in anticipation of interest
payments; but this is mere scattered
trif1e and it is expected that he will
make further efforts at relief. Since
the treasury is steadily accommodating
funds, owing to heavy receipts, the
secretary is justified in counteracting-
by all legitimate means-the injurious
operations of our present treasury sys-
tenn. The facts, however, are that in
spite of the enormous increase in the
supply of money bank reserves are ex-
ceedingly low land in addition to treas
ury absorptions, the interior is again
making heavy demands upon the New
York banks. 1t is true some Of the in
terror banks are lending more freely
in New York, but the one movement
seems to be Offset by the other; and
unless there is a sharp contraction in
loans this weeks bank statement must
show a deficit in surplus reerve. There
has been some talk of renewed Ameri-
can purchases of gold in the London
market. Such reports, however, are
premature, and gold shipments will
surely meet with renewed resistance
Notwithstanding it's recently strength
ened position. The scramble for gold
is not confined to New York, but ex-
lists in all the principal money mar
kets of the world; so New York will
only be able to draw fresh supplies at
the expense of unusual pressure or in
furious rates of interest. Both the
Bank Of France and the Bank of Eng
land lost gold this week.
Situation Complicated.
The monetary situation is further
complicated by prospective new secu-
rity issues of our railroad corporations,
which have been previously intimated
in these advices. This week Atchison
authorized $25,OOO,OOO additional secu-
rites, and Norfolk & Western $14,500,-
900. Other companies, such as St. Paul,
New York Central, Great Northern and
Northern Pacific, will also come into
the market for large amounts of new
capital at the first opportunity. Their
requirements are Imperative; being
needed for improvements and new
equipment to accommodate existing
traffic more than for the development
of new territory. These new demands
coming at time when the money mar
ket is already over-strained portend
continued tension. How long the
struggle between highpriced stocks
and highpriced money will continue re-
mains to be seen. To restore equili-
brium one or the other must decline.
Much depends upon the strength of
securities are at present strongly con-
centrated in a few hands at very high
prices. There are two inevitable ways
of breaking the present deadlock;
either stock market values must recede
and permit reasonable liquidation, or
borrowing rates for money will soon
reach a prohibitive and injurious level.
Just when or where the breaking point
will come and how the situation will
be readjusted, are problems which only
time can solve. Very shortly prepara