Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-09-24
E|RNNESS World WIDE
Is a Significant Feature in the
Monetary situation---Ad-
vance 6 1-2 to-
BUSINESS ACTIVITY A FACTOR
Demands for Crop Moving Purposes
Are Not the Only Unusual Calls Up
on the Banks-MiIs and Merchants
Are Engaged in a Record Breaking
Activity-New York Situation.

New York, Sept. 24.-The stock mar
ket continues under influence of the
monetary situation. The most sig
nificant feature at the moment is the
world wide firmness in money rates,
and the advance in time money at this
center to 61a0 OF per cent.
Secretary Shaw has not yet increas-
ed his deposits with the banks, a
means of relief to which the govern
ment will apparently soon be impera-
lively driven. Meanwhile, the facilities
for gold imports are diminishing. Lon
don, Paris and Berlin all show an in
creasing indisposition to permit gold
to come this way.
The situation of the local banks
ought not to again become as weak as
fortnight ago. Gold imports have
materially strengthened the institu-
tions, ard there has been an important
contraction in associated bank
loans which are now lower than
for the past two years at this season;
and which, in view of the great bust
ness activity and heavy stock market
operations, demonstrates that our cred.
it abroad has been greatly expanded in
order to finance American stock mar
ket operations. The demands for
crop-moving purposes are not the only
unusual calls upon the banks. The UNI
precedented activity in business is al
so to be considered as very important
factor in the present period of none
tary stringency. Our mills and our
merchants are all engaged in a rec
ord brsaking activity. Their demands
are urgent and must be satisfied. The
financing of new enterprises and new
security issues also locks up large
sums temporarily.
Real estate SPECULATION is another
element which has absorbed heavy
amounts of funds. 1t is, in fact, the
most unsatisfactory element in the
whole situation. Meanwhile, there has
been a great expansion both in cur
rency and in credit-the latter not to
a dangerous degree, yet quite suffi-
cient to impose heavy strain upon
our inflexible monetary facilities. High
interest rates the world over are SIM
ply a sign that the monetary machin-
cry is being worked to its fullest ca
pacity. In this country it Is being
overworked and there is friction. These
high rates may mot yet In any sense
be regarded as a danger signal, but
they indicate that demand has over
taken supply and that some sort of
readjustment and caution is impera-
tive. High rates will put a check upon
reckless speculation, and by such
means the equilibrium should be
gradually restored.
1t is quite certain that we are on
the eve of important changes in the
relations between the great trans
continental routes, and that before
very long the railroad map of the
United States will be largely recon-
structed This means active times in
the future.
1t looks as If the big cliques who are
holding stocks were we'll provided with
time money with which to carry them,
and are, therefore, entrenched in their
position. AS their holdings average
far below present prices, they can af-
ford to take big risks and every time
the market rallies, they feed out to
the public enough stocks to satisfy
the demand, and then buy back what
they have sold, on the next break. In
this way they accumulate no new
stock, but the profits on their turns
reduce the average cost of their hold
ings AS the cliques sell their stocks,
it gives them a corresponding amount
of their time money to loan out on call,
so in that way they are in a position
to control the stock market and the
money market as we'll.