Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-09-26

NEW YORK, Sept 26.-The week
has seen no change of moment in
stock exchange circles. AS was to be
expected, the market from day to day
has this week proved a favorable one
for traders, fluctuations covering a ,
fairly wide range as a result Of the
natural influence of day-to- day hap
penings. But fundamental conditions
remain unchanged, particularly as re-
cards the money situation. Secre-
| tary Cortelyou. it is true, has by his
timely use of public funds removed
the fear of extreme stringency; he has
not, however, been able, and probably |
will not be, to more than temper the
strain caused by the permanent lock-
ing up of capital resulting from the
tremendous business and industrial
energy that has marked the last few
years of unreasoning optimism and
unregulated expansion. Money is I'M
| questionably scarce, with the pros
poets of continuing so at least over
| the turn of the year. The situation is
we'll illustrated by the difficulty that
virtually all large mercantile estab-
| lishments are experiencing in dis
counting their paper, very close to Z
per cent being the minimum require
ment from the largest and strongest
houses, with corresponding figures.
amounting in instances to practical
prohibition, for houses under ordinary
conditions considered strong, but not
strong enough to receive accommoda-
ton when money can readily be plac-
ed on safer basis at equivalent rates.
This is a feature fraught with danger.
The commercial paper strain is one of
gradual development.
Demand for Liquid Capital.
Money has for so long been active at
New York. the financial center, that
the necessities of many of our larger
mercantile houses were about 60 to 80
days ago financed by out town, and
especially by Western institutions. It
was quite natural these Institutions
should only discount maturities that
would allow the immediate re-employ-
ment of their funds when the CROP
financing period arrived, and as that
period is now at hand the mercantile
borrowers are being compelled to take
up their paper and are experiencing
unusual difficulty in replacing it, They
are compelled to apply to New York
: institutions for that purpose. and
lenders here have much more than
they can handle without taking up the
additional burden. We are experience
ing national-an International
scarcity of liquid capital and must be
content to enter a period of rest and
recuperation after the long period of
exhaustion, unbridled financial. indus
trial and mercantile enthusiasm and
hysteria through which we have pass
ed Wall street. the nerve center of
the country was first to realize the
necessity of contraction-its functions
gave the necessary foresight-and it is
but natural that there should be a cor
responding readjustment of Industrial
ment that from a broad standpoint is
at once natural and necessary and one
that win prove beneficial
Showing Financial Strain.
The annual statement of the con-
troller of the currency on the condition
of all national banks of the country
, under the call of September 4 is an
exceptionally important one. Com
parsons are available with the figures
of May 20 this year and September
last year. In the case of the former
the loans and discounts show the large
expansion of AZ million dollars, while
the corresponding figures of last year
show the rather startling expansion OF
more than 379 millions. AS a partial
Offset, there has been an increase OF
6S millions in specie and 8 millions in
legal tenders, while deposits have in
creased 119 millions. An appreciable
part of this expansion undoubtedly
represents the transfer of loans to this
country from abroad; but it neverthe-
less also reflects a strain upon the
financial situation which foreign mon
ey centers are not in a position 10 re-
lieve in the form of abstract loans. On
the other hand. we may unquestion-
ably rely upon the beneficial effects OF
large exports of our agricultural prod
ucts, of which we have sufficiently
adequate supply to export at The IA
4 vorable price conditions abroad vii
compel buyers there to pay. 1t is quite
evident that there is ample room Il
adjust prices to favorable export ba.
sis if it should prove the present rang,
is too high. Cotton, for instance, 1:
about ave per pound higher than ;
year ago, wheat is 25c per bushel II
round figures, corn 15c and oats 25c
Imports are continuing at a new rec.
breaking rate, the dutiable entries
for the month of August, for instance
y at New York being valued at $33.694,.
900, as against $sO,95s.O0O the preced
ing August, and the dupties collected
Z on direct imports for the month were