The San Francisco call., 1906-09-20
Money and stocks.
A RECOGNIZED EXPERT POINTS OUT SEN
FRAL POSSIBLE BREAKERS.

ERAL POSSIBLE BREAKERS
Henry Clews. the New York banker and Wall
street operator, says Of the current money and
..The monetary situation has been distinctly
improved by gold imports, the engagements thus
far this week amounting 10 about $50. 600. 600.
Good authorities estimate that we shall be able
10 draw az least $50 600 900 from London this
year, II not more. It is also possible that we
may secure assistance from Paris II needed,
Were FUNDS are sleaoi-y increasing owing %
The inertia arising from political and socla lstic
6ssfenes ~ oG Por % e@Fe N funds to
national banks importing gold The Govern
lnent's action also in depositing funds with
Interior banks tended 70 relieve the strain IN
The money market. Until this last step was
taken the Treasury. thanks 10 our clumsy cur
rency methods, had locked up about S43, ,00o, 900
more than year ago all of which might have
been in the banks lubricsting the channels Of
business but for the ignorance and tnaction OF
Congress. Secretary Shaw has done his best
70 counreract the elects Of an illogical currencT
system, but long that system remains N
It's present form our money market must con
tinue in times Of stringency exposed 10 the
judgment Of single individual whose action
may not always be as courageous and wise as
lhat Of the present very sstute Secretary Mr.
Shaw. however, cannot very well prevent the
money be releases indirectly assisting specu-
lation. Money. Ike any other commodity, al
ways goes straight 70 the highest bidder; this
being natural tendency that no Government
official can arrest.
THREE POSSIBLE ELEMENTS OF DANGER.
Last week our bank reserves touched the
mark the lowest point FOR the current season.
b. means Of gold imports. Treasury advances.
Government deposits and contraction IN loans
bank reserves must show much improvement.
Recent stringency had been long foreseen, and
many borrowers protected themselves accord
tngly- Moreover stock market requirements have
been considerably provided for abroad. which
does much toward explaining recent indiner-
ence Of this market TO local strfngency, and
which viii also leave our home banks more free
- deal with legitimate home requirements.
Through such means OF relief the pressure upon
the local money market has been considerably
sbated, and unless speculation should break out
81 aggravated form or rates be unduly manip-
Mated the worst Of the money squeeze for the
present should be over. Firm or even irregular
rates msy be expected. for this seasons de-
mnnos are certain TO be extraordinary and the
lneiastlcity Of our currency system makes this
the most erTatic money market in the world.
AS for stock market prospects there certainly
seems little chance for important reaction while
our railroads continue 10 do such an enormous
and profitable trafSc- Their activity simply
demonstrates the activity Of those who use them.
This market seems destined 10 be kept well in
hand Tor the present. Il having the unanimous
backing of the most powerful and resourceful
group ~ leaders ever seen IN b.. all street At
me ssme time the market is exposed 70 three
dlncers, which sooner OF later will bring re-
action. These are; a. Concealed realizing by
biz holders q spasms IN the money market;
and % ultimate collapse from speculative ex-
ceSses Nor has Wall street yet forgotten the
irlck 81 discountinE in advance the happenings
% business and r0lftfcala circles -