The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-12-22
HIGH MONEY AND NERVOUS STOCKS
Current Conditions Not Favorable TO
Either stocks or Money

Henry Clews in his New York circular, thus
reviews the current financial situation;
The supply OF loanable funds is as scarce as
ever and there stfu no signs Of permanent
sovernment. secretary Shaw,s offer to deposit
$4,000. 600 in the banks is of little avail. be
bsSscter Bis orfer too. Of SO ZOO 900 for the
purchase OF 1907 bonds is also OF insufficient
assistance for similar reasons. With the APP
proach OF January ] preparations Will be in
order for unusually heavy dividend ana interest
payments. These funds viii. OF course, quickly
find their way back 10 the money market; but
The advance preparations are likely 10 enforce
considerable shifting OF loans. So, too, VIII the
cent or $4,000. 600. for completion OF trust
company reserves. which must be made by Jan
Jay POSSIBLE GOLD IMPORTS
The possibility of gold imports is again
being discussed. The Bank of England. our nrst
during the last few weeks and is expected TO
receive AT least SO 600 600 OF gold in the month
OF December. Brazil and Argentina may re-
least s.. 600. 900 better on than month ago.
other demands upon the Bank of England are
supposed 10 be held in abeyance for the time
being. that the possibility OF procuring help
from that quarter is somewhat better than II al
one time appeared. American finance bills are
again being placed IN London for the purpose
of relieving the tension IN New York. Efforts,
however. 10 shift the pressure upon other cen
not entirely satisfactory. They dis
tribute; but DO not lessen the load now placed
upon the credit situation. which is being con-
stsnty aggravated by new demands. As re-
peatedly intimated in these advices. there is
only one proper cure IOf present. CuudielOuS-
that Is liquidation such as we are now having
Should the market continue TO take this course
the effect win fail most heavily upon some OF
The clioues and pools which have been carrying
securities for 2 long period Fortunately the
public Is not IN the market TO any great extent
Prices or many OF the active STOCKS are now 20
high that investors VIII not touch them and
spectators cannot because carrying charges are
700 high. while the risk is considerable in
opera lions for either the rise or the fall Stock
market movements have practically come 10
deadlock far concerns speculation in the
better class OF securities The bulk Of these are
in the hands Of strong holders, who will not
sell while business conditions continue they
sre-
THE OUTLOOK
The weakest point in the market Is IN the
situation Of old pools and syndicates which sre
still carrying considerable sums of securities
on borrowed money Upon these the strain
OF a stringent money market viii chiefly fall.
As said above. there is prospect for material
relief in the monetary situation for some time
10 At the first signs OF improvement after
January 1 shall probably q number Of
railroad corporations which have undertaken
improvements that must be completed in order
10 handle existing traffic. The output OF new
securities is going at tremendous pace
and shows no signs OF cessation.
Outside conditions continue favorable and
the outlook FOR the coming year is satisfactory
The chief trouble IN the financial world IS the
exhaustion Of loanable funds: FIRST. by over
expansion Of credit: and second, by the high
prices which quickly up funds and diminish
the loaning power OF lending institutions
II takes larger amount OF money than former
spite OF the larger supply Of currency and gold
our monetary resources are inadequate. An
elastic currency is highly desirable, but not
cure for present conditions -