, 1907-11-05
HENRY CL[Ws ON
MONEY MATTERS
NEW YORK %FINANcIER DISCUSSES
RESULT OF RECENT FINAN-
CiAl FURRY IN EAST.
Situation Shows Some I'm.
provement, But More or Lesa
Strain Still Being Felt in Berlin
and London-irregular stock Mar.
ket 10 Be Looked for Still.

Special to The Republican.
New York, Nov. 5.-Henry Clews of
this city, in shis weekly advance proof
of the financial review for the week
has some reference to the need Of an
elastic currency. Mr.. Clews says:
Recent experiences emphasize the ne
cessity for the establishment of an elias
tic currency system. We need an
elastic automatic currency system
through banks of issue, corresponding
TO the Canadian system, which fol-
many years has worked SO smoothly
and safely under conditions similar to
those of the United States.
Preventing Panies.
mo means has yet been found for
preventing panics, but a scientific cur
rency system would go far toward
avoiding such crises and mitigating
their effects" Continuing, Mr.. Clews
says:
Showing Improvement.
"The monetary situation shows some
rates are abnornlally high. The ad
vance in the Bank of England rate OF
l per cent to 5h per cent was not en-
Itirely unexpected, in view of our large
gold imports from that quarter. There
is more or less financial strain in both
London and Berlin, consequently the
gold movement meets with resistance.
In case of necessity, however, our de-
mapds are likely to be satisfied.
Heavy Borrowing Abroad.
Our borrowings in Europe this fall
are much lower than for several years.
and London would prefer giving us
the gold in order to stop distrust here,
which might injure the situation over
there. Paris would quickly help Lon
don to finance American requirements.
Fortunately. We are in a position to
command more or less Of the precious
metal. Europe must have our wheat,
our cotton n our copper. From these
three articles alone We have been able
to materially increase our imports OF
gold.
Attractive American Securities.
Another important source OF relief
has been the freer buying by London
of American securities, which are now
at exceedingly attractive prices to Eur
opean investors. The stock market
certainly offers many very unusual bar
gains to the outright buyer Of securi'
ties. Marginal transactions still ia
volve unusual risk on every side of the
account, but to the cash purchaser the
present opportunity is an unusual lie.
Money Should Be Reinvested.
People who have taken their funds
out Of the banks during the recent
scare should reinvest them in sound
interest-paying securities. By this
means they will be performing a Ser
vice to themselves In securing profit
able investments and a service to the
public by returning money to the chan
nels of circulation.
HoardIns 10 Dangerous.
THE recent disposition to hoard
money was one of the most dangerous
elements in the panic. Money was
withdrawn from use at the very time
when it was most needed; more fire.
quently from senseless fear than for
good reasons. From now on condl-
tons in the money market will gradu-
ally improve, and borrowers with good
collateral will find little or no difficulty
in securing accommodations.
Have Turned the Corner.
There may be some trouble in re-
- o,r,in- ,,t,r;np Ahltuofinnc hrrf thaSa
are matters which will come up for
adjustment with the progress Of time.
1t is well to recognize that in general
business we have turned the corner;
and that commodity values must re
cede.
Necessity for Economy.
Economy must be pfacticed not
only in business, but in private affairs.
If these facts are recognized, the pro
cess of readjustment car be accom-
plished in a gradual and orderly fash
ion, and in due time the foundation
will be laid for renewed activity and
prosperity.
For some time to come an irregu.
lar stock market must be anticipated.
Such rallies as may occur are sure to
be taken advantage of for the liquida'
ton of weak spots, and until these are
eliminated no permanent recovery can
he anticipated.
Rest for the Market.
Moreover the market will need a
period of rest for recuperation. and lit
tie speculative buying Of importance
can be INDUCED in until the money mar
ket resumes more normal conditions.
Eventually there will be a glut In the
money market, and low rates will rule.
but that period is not yet in sight"
Deafness Cannot Be Cured
by local applications, as they cannot
reach the diseased portion of the ear.
There is only one way to cure deafness.
and that is by constitutional remedies.
Deafness is caused by an infiamed