Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-02
BULLS AND BEARS
spe,:l.l plspateh 10 me Star.


NEW YORK. March 1.-The transfer OF
100000 to Cincinnati yesterday by the sub
treasury for the account of banks was re-
garded as marking the beginning of the
spring outflow of funds to the interior,
which is otherwise called the crop-planting
movement. Considering the fact that re-
ceipts from the interior have been rather
small since the first of the year II may be
that interior banks would not make as
heavy drafts on this city for cash as Is
usual
The spring outflow generally runs to about
the middle of April. after which receipts
from the interior usually exceed shipments
and the credit position of the banks here
improves until August. when the crop
moving outflow begins. Whether or not the
spring outflow is in normal and even abb
normal amount. it would seem to be a tru-
ism. demonstrated by the recent course Oh
foreign exchange, that the local money mar
ket viii obtain ample supplies OF credit
from abroad long its interest rates
remain at profitable level above those
which obtain in London, Paris and Berlin.
The present mobility of International cap
ital is the greatest the world ever saw, and
capital tends toward the most prohtaDie
market as inevitably as water seeks its
own level. If the European political situa-
ton clears UP and conditions in Russia Inn
prove or do not grow worse, European
money rates would be likely to reax. and in
that event tide of gold would be likely to
get this way If business and industrial ac-
tivity in this country should continue to
make heavy demands on the money market.
Gold may be imported soon, even If there
is no immediate change for the better in
the present situation abroad, but in all
events foreign credit will continue to be ex-
tended here while it is profitable to do so.
The Wall street community might have
occasion for concern IL the European money
markets should harden in marked degree.
for that would mean that Wall streets bid
for credit would have to be raised to point
that might make 1t undesirable to hold Sc
cur1ties, no matter how prosperous general
trade and industry might be. If foreign
credit is to be available in good amount for
the next few months however. the fall mar
ket will apparently afford no canse for
anxiety, for the federal treasury is getting
into good shape to extend more than mod
crate amount of relief to the money market
in the crop moving season.
Malcolm & Coome have issued quite a
bearish letter on securities, the text of
which is:
There is no immediate relief to the
strained money situation in sight, except
through liquidation in the stock market"
Among "unfavorable prospects which now
exist are cited 1.-The Socialistic attacks on
corporate tons in our federal and state legis
latures. the possibilities of a coal strike and
the dissensions among large financial inter-
ests 1t Is said that there is an evident
deadlock between consumers and producers
In the iron and steel trade" and disap-
pointment over the profits made by some in
dustrial corporations last year. Point is
made of the adverse influence of the is
suance of new securities and of the effect
of a possible serious curtalment of gold
production through the British govern
ments refusal to license any further inn
portations of Chinese coolies to work in the
Transvaal gold tields'
The fact that the Steel Corpora ton is
building a huge plant in Indiana near Chi
cago. to serve the western demand is in
stanced as showing that it Is unlikely that
the corporation would seek control of the
Colorado Fuel and Iron Company The
building of this Indiana plant. which will
be operated by the Illinois Steel Company
is in pursuance of a conclusion that the
bulk of the steel business will soon be done
in the west.