The Marion daily mirror. (Marion, Ohio) 1892-1912, 1907-12-02
Financial SITUATION 81
IS GREATLY IMPROVED
Henry Clews' Weekly Review Of Conditions in New York
Tells Of Better Feeling 10 Money Circles and Pre-
diction That the Near Future Will Witness an
Early Return to the Normal.

within the twelve months. these
figures take no account OF the is-
sues of municipal securities and
those of many other business con-
Germs of minor character. but
they are quite sufficient to indicate
the extraordinary demands upon
the money market during the last
two years: demands which in con-
nection with huge speculative bor-
rowings imposed an unbearable
strain upon the banks and precipi-
tated the March, August and Octo-
Der collapses in the stock market.
Utner 1nfluences nave undouDtedIy
been at work to cause the break
down, but no single factor COM
pares i'm Importance with that OF
the excessive issue of new securities
and obligations during the past two
years which the country was utter
ly unable to assimilate.
The asier conditions which de-
veloped in the stock market also
produced better feeling in mer-
camille circles. The latter, however,
still feel the general restriction OF
credit which the banks appear COM
PEELED to enforce. Our commercial
markets are all more or less un-
settled by the tendency towards
lower prices. 1t is generally recOg-
nIzed tnat the various markers
have entered into period OF
readjustment which. though less
violent and radical than what has
occurred on the Stock Exchange.
mast nevertheless be anticipated
and dealt with according to devel-
opments. The mercantile situation,
fortunately, finds itself in much
sounder condition and better able
to meet the reaction than did the
stock market. There, there are few
cases of overproduction, and there
is a general disposition to avoid
such a contingency by prompt
shutting down of mills when that
seems advisable. Quite a number
of hands have already been un-
fortunately thrown out of employ
ment in consequence, though the
percentage OF unemployed is not
Lyet important and is being kept
down by unusual emigration to the
Mediterranean ports this fall. u II
reaction is to come in the mer.
chandise markets. and that seems
likely 1t promises to be more grad.
lual and more easy to guard against
than was the case In the financia
markers.
Before very long we will unques.
tionably see much easier conditions
prevail in the money market .About
$100,000,000 OF gold has been en-
gagged or imported: there has beer
large expansion in bank currency
and the recent measures of relie
fwill Insure redundant currency OF
more or less subsequent initiation
Bank reserves should now begin Il
rise, and by next spring IL no
sooner we must be prepared to Sc,
gold exports on a liberal scale, tn,
low rate of interest, simulated b,
an excessive and rigid currenc,
supply. being an impirtant stimulus
to such an efflux.
! This week congress opens an,
the President message will b,
awaited with unusual interest. |
Is fully expected that his remarks
Will be more assuring than the,
have been i'm the past. Currenc,
legislation will undoubtedly b,
one of the most active subject
OF discussion this winter and 1
is to be sincerely hoped that idea
VIII be followed which have th,
support of scientific authorities an,
actual experience. The chief dif
ficulty in securing scientific an,
elastic currency system will be tn
Ignorance and consequent multiplj
city OF ideas which prevail on tn
subject AS rule. the number O
remedies proposed is in proportion
TO the ignorance of the doctors
unfortunately, there is scarceI
any subject so little understood
and yet so vital to the welfar
OF the country. Congress badl
. needs sane and strong leade
: In behalf of sound currency legisla
tion. Short sales in the stocI
market should be avoided hereai
ter, except for very quick turns
HENRY CLEWS.
SENATE CnKNvrnuv. ~