Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-09-05

provement can be recorded in the
financial situation, which was due
partly to reactionary influence, partly
to the satisfactory policy Of Secre-
tary Cortelyou and partly to the eff
forts to take up the new $40,000,00
New York city bond issue, which indi-
Gates reviving confidence. After such
violent reaction as has been expert
enced during the present month"; a
partial recovery was to be expected,
because liquidation rad been exceed !
ingly thorough and the purchases of
an important short interest contribu- |
ted to rally. Whether liquidation
| has reached the end or not, 1t is some
what premature to decide. Much de- !
ponds upon the future course of the
money market. The credit situation
has undoubtedly been greatly improv-
ed by recent liquidation, and this of
itself should afford substantial relief.
The outlook, however, for the money
| market continues uncertain. Firm
rates are likely to prevail through the
balance of this year, though it is hoped
the extreme figures reached two or
three years ago will not be repeated.
Money Demands Are Heavy.
Nevertheless, it is idle to conceal the
fact that there is more or less anxiety
concerning the monetary situation.
Very shortly we shall be in the midst
Of the cfNp moving season. The pros
poets are for full average crops If we
escape early frost, and as farm values
are upon an unusually high level, the
monetary requirements this fall will
inevitably be heavy According to all
accounts business in the interior con-
tinues upon an active scale, and as
values of all commodities are very
high, the requirements for business
purposes must be correspondingly
large.
Europe Not Inclined to Help.
Had 1t not been for liquidation in
8 the stock market, the strain upon our
E monetary resources would have been
exceedingly serious, if not disastrous
AS II is, the legitimate autumn de-
mands must be faced, and the de-
mands from financial circles will be
held in allegiance for some time to
come, the New York city bond issue
being an exception. 1t is quite evil
= dent that Wall street will not be able
Il to obtain anything like the accommo-
\ dation in London with which 1t has
been favored for several years past
and even Paris and Berlin are becom-
ing shy of American borrowers. For
aunately for us the strain in Europe
appears to have been partially rerev'
ed. since had 1t been further aggra
waited he would have been compelled t.
part with a considerable amount o
our present stock of gold. Grain anC
cotton bill should soon be in larg'
supply, thus tending to discourage an!
4 efFIux of the precious metal. Our ex'
ports of merchandise continue large II
volume, and at the present high prices
obtained for our products the net re
suit should be a continued favorabl
trade balance. At the same time on
imports are also running heavily ant
keeping down the former large exces
4 of exports.
Banks Must Take Prudent Action.
The chief danger in The future is
crisis in the money market. IL ]
hoped that this will be averted as tn
result of past liquidation and throug
prudent action by the banks. The lat
ter should continue to lend freely t
all sound. going concerns, since an un
due curtailment of credit at this tim
n might easily precipitate disaster. {
course the blow in Wall street Will
felt Indirectly in industrial and CON
mercial circles particularly in n
spect to new enterprises, or the er
n largement of old ones. Wall sire
. has unquestionably pretty well dis
- counted all unfavorable conditions, ar
= further reactions in securities Dug
] to bring prompt rallies. The con
! modify markets, however, have m
! yet shown any general tendency to r
Z cede from the present abnormal
high level. Costs of production ha'
4 been greatly enhanced by the rise
] labor and commodities. This fact h
more to do with the present STRINGS
CIV in money than is generally su
Y posed.
Reaction in Commodity Prices.
AZ While our supplies of capital ha
been exhausted by recent demands.
= is also true that the supply of mon
II has been rendered inadequate to
large extent by high prices in all cor
modities. If we are to return to mo
normal conditions. it seems inevitat
that some reaction must follow her
not to the extent which has been e
perienced in Wall street. but still to
substantially lower level than now
lists. Such q decline. II we'll distrib
ted and brought about gradual
would place our industries upon
more substantial footing. Enterpri
Is unouestionably checked by hi