The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-28
money SQUEEZE
NOT LOOKED FOR
New York Bankers Expect Cash
to be Plehtifultfor All Legiti-
mate Business.
COMMODITIES ARE TOO HIGH
These and Labor Must Get
Cheaper-Trouble, # Any,
is Far Ahead.

is Far Ahead.
NEW York, July 27.--Bankers Of.
al, kinds have been interviewed here
THE week By representatives of the
Journal Of Commerce and Commercial
Bulletin on the financial outlook. The
results OF the interviews are interest
ing.
While the bankers do not expect
extreme monetary stringenc. in the.
fall, unleas reckless speculation breaks
out. they are confident the country is
about 10 witness a readtustmsnt pro.
cess that will bring labor and all lines
OF commodities back to sane level,
one that VIII enable this available CAPT
tai 10 take care of all Legitimate needs.
Almost every banker emphasized the
basic soundness Of the countrys
finance and trade and expressed the
conYiction that the recession will nlti-
ma tely l'rove beneficial! The follow
ing statements may be given as typi-l
cal OF the best banking opinion in
New York:
Labor and Commodities Must Fall.
The representatives. OF one of the
largest banks in New York city said
In part: The one thing that strikes
me as Inevitable Is that the whele
country will have to undergoaa period
| OF retrenchmenr Labor must come
down. Fuel and materia! must return
to normal levels. New buildings and
lFnew factories vii! not be erected at
present excessive cost The merchant
and the manufacturer cannot hope to
! go on increasing sales by 10. so or 100
Eper cent; no matter how satisfactory
met profits may be. the money market
tcannot stand the strain OF such abnor-
| NAL expansion. Business has grown
tEtoo rapidly for our available capital.
Securities. which partook In the cycle
Of initiation, have radically readjusted
themselves. BY this ! do not mean to
! say that they have touched bedrock,
for I an not satisfied that we may
mot see lower prices, once the general
TRADE reaction il under full swing,
Ibut. as contrasted With the industrial!
situation the securities markets are
ION sane levsl. AS usual Wall Street
thas discounted the future. The rest
fof the country has not yet done so.
I TT the Tong run, however. everything
mil! come right. Inherent conditions
arc sound and the people We're never
ina better position than they are TO-
ldaN. Our progress has been too fast
and we must now halt a little pending
la fresh forward movement This inn
4 pending business recession will terd
A to- allay money stringency, 50 that
4 de- not regard the present low bank
4 reserves as portending serious trou-
j blc.''
Smell of Smoke.
ES-secrstary OF the Treasury Shaw
1 said he did not desire to make any
4 predictions for the future further
lthan TO call attention to the fact thai
4 every previous prolonged period OF
4 disaster has followed agitation look;
ling to what Is now universally recog'
.ttnized to have been unwise financia
ilegislation or following radical tariff
reform. An imagined smell OF smok'
has occasionally caused some temporary
4 excitement. but conflagrat!ons have
4 not ensued except from causes sucf
4 as have outlined
The Pinch Not Yet Due.
4 A well-known member Of an inter
national banking house that has re
i putedly profited enormously through
having last fall forsseen the impend
ling break In securities. spoke In c
q cautious. but withal hopeful strain
1.-THE full effect OF recent events II
Il tho financial district Will not be fel
we'll into 1908" he said, This time
the wealthy people have falt the pinci
first, Already the demand for luxu
u ries has dln,inishsd-eXpenslye Jew
eiry is not being bought so racklessly
IA automobile manufacturers are no
Irushed with new orders, and the Graz
to buy land has ceased The West can
!, mot understand the cautious feelinI
Il that exists here, for the reason tina
], business there is still very active, Blu
am told that the telephone compa
) nies for example, have curtailed new
work, and this is one cause for tn
reduction in the price OF copper. tn
! railroads, wa all know, are cuttin
! down extensions and are merely tin
fishing projects planned before meme
: became so hard to raise, Now, whe
the retrenchment movement has gon
on for some tir1e---When the lnon1eIl
q tun} that is now sending US forwar
!. gives eut-peopIe vii! not be so read
4 to spend money. The business mar
8 when he Iinds his incanle hsechAIn
less. will not send Ms family away 0
SO many pleasure trips. nor buy "
! the same way, the laboring classe
when they find that work Is not plen
tifnl- and that there ,!s a growing arm
q nnemployed, will postpone Purchass
! OF new clothing ana new linen, an
this, IN turn, Will directly affect Il,
!, retail trade The final rssnlt will I
that prices will come down from II,
impossible level they have been force
! UP TO, and a necessary rsadjustnleF
Q Will take place. Az to whether q
THIS Mil leaG to further depression J
!. securities Is open to question, The q
feet upon haSgmoney market ougt
Ultimately 70 be beneficial aimee lei