East Oregonian : E.O. (Pendleton, OR) 1888-current, 1907-08-23

Chicago, Aug. 23.-The CONNER
cial National bank of Chicago yester-
day issued a summary 1f financial,
commercial and Industrial conditions,
stating that the business situation Is
sound and the outlook assuring. The
report in part follows:
We endeavor in this manner 10
present to the public an answer to the
question which all men are asking.
"Is the business situation sound and
the outlook assuring2"
This answer Is drawn from a COM
posite picture of conditions as graph
ically described In letters from thou
sands of banking manufacturing
and merchandising correspondents
throughout the country. Not far from
$4,000 separate replies enter into the
picture before US, and the definiteness
of the image before as rs remarkable.
There is no vagueness or blurriRg
about 1t. II is clear cnt and incisipe.
Rosy Prospects.
The overwhelming preponderance
of evidence Is that the business sit
uation is sound and satisfactory. Not
one OF the thousands OF replies mega
uves this conclusion in definite terms.
That there has been a marked easing
down from the tension of the spring
and winter months of the year is gen.
orally admitted, but 1t is admitted
without a trace OF regret or misgiv-
ing. The country had been rushing
ahead at a whiirwind pace until the
tax on credit and capital accumula-
tions compelled respite. The de-
mand for goods to meet instant needs.
or to replace otener goods destroyed
by wars ana calamities. to to provide
for the certain needs of the future,
has been unprecedented. To meet
this II has been necessary for the
manufacturers and distributive agen-
cies of the entire world to employ al
most every available unit of money
and to put into action every potential
ity of credit.
The result is too familiar TO all men
of affairs to need exposition. The
strain on the money centers of the
world has been very great. In ordi-
nary times the stringency of one
plethora of another through the COM
monplace OF the mechanism of ex-
change. But it has been different
since the Peace of Portsmouth There |
is no easy money in the civilized |
world today.
The composite picture drawn by |
our correspondents tells wonderful |
story of relentless warfare on the |
wild places of the continent: 1t shows |
marvellous picture of advancing |
standards OF living among the people |
of this country. And precisely in the |
same way the money conditions OF |
Europe tell similar stories of warfare |
on the wilderness of Africa and Asia
and similar stories of the pushing OF
trade and the advance of civilization
among the simple peoples of the
world.
Money Demand and Credit.
The bankers of the country with few
exceptions in the far west, report an
extraordinary demand for funds in all
lines of business activity. Interest
rates are very firm everywhere, and |
in the central reserve and larger re-
serve cities the inquiry for funds so
much exceeds the supply that money
is described as "very tight" The
range Of our investigation justifies
the conclusion that bank deposits
show straight average increase of
about 14,2 per cent against a similar
average Increase of 1913 per cent In
the loans. The averages weighted ac-
cording to the relative magnitudes Of
the totals would probably show clos
er correspondence between the
growth of deposits and OF loans.
It is significant that the states of
primary production in agricultural
and mineral products show larger
margin of deposits over loans than the
states Of secondary production, that