The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-12-04
SYMPTOMS OF
RELIEF SHOWN
MONEY MARKET HAS WORKED
OUT ITS OWN 'cURE-RE-
DEMPTIoN IN SIGHT.
(By Henry Clews.)

(By Henry 1leWS.I
NEW YORK. Dec. 4.-There is dis
tinctly better feeling in the financial
situation due almost entirely to i'm
provement in the money market which
has been working out its own cure.
Hoarded currency is being returned;
foreign gold is pouring into our cof-
fers: bank reserves are beginning to
strained: call and time money rates
are lower, and redemption of Clearing
House certificates is already in sight.
These symptoms of relief have fortu-
nately shown themselves even before
the additional currency furnished by
the government had become available.
They show natural and healthy tend
encies toward recovery. AS a result
we have had fair rise in the stock
market and confidence has been cor
respor.dingly improved. 1t is quite evil
dent that the corner has now been
turned, and that liquidation in the
main is complete Possibly further
weak spots may develop later on but
these promise to be of minor import
ance. After he enormous shrinkage
and liquidation of the past few
months, the market is evidently on a
safer and sounder basis than it has
been for a long period. and as soon as
the monetary situation rights itself
and confidence is more fully restored,
values should go back to a more
normal level.
What Caused Crash.
Now that the panic is over and a
sober view is taken of current events,
the question is constantly asked:
What caused the crash? The answer is
Necessarily a difficult one, because the
, causes We're many and complex. The
main reason. however. has been that of
general OVERRIDING. Credit was overex-
tended; speculation was excessive and
l1ll-advised; expansion or every sort
was being carried to excess by over
floating capital was practically ex-
hausted through being turLed too rap
idly from liquid into fixed forms. We
nave only to glance at the demands
upon new capital during the past year
or two to realize this fact During the
| first 10 months of the current year,
the amount of new securities author
lied amounted to over $1,75O, OOO. 900. of
which at least $1,000 900, 900 was actu-
Tally issued: These figures simply in
clude railroad and industrial securi-
ties and notes, the great bulk of which
was offered previous to September first.
Heavy Issues.
The year 1906, was so a period of ex-
'ceptioLally heavy issues, the total then
being Sl.6OO.OOO,OO0 authorized and
$780, 100000 issued within the -
months. These figures take no account
iof the issues of municipal securities
and those of many other business con-
Germs Of a minor character. but they
are quite sufficien to indicate the ey-
traordinary demands upon the money
market during the last two years: de-
hlands which in connection with huge
speculative borrowings imposed an un-
bearable strain upon the banks and
lprecipitated the March, August and
OCTOBER collapses in the stock market.
other influences have undoubtedly been
!at~Work to cause the breakdown but
10 single factor compares in innort-
ahce with that of the excessive issue
OF new securities and obligations .1ur-
ing the past two years which the conn
Try was utterly unable to assimilate.
Will be Easier.
Before very long We viii unoues-
tlonably see much easier conditions
prevail In the money market About
sloo'ooo'ooO of gold has been engaged
or imported: there has been targe
expansion in. bank currency and the
recent measures of relief wilIs*insnra
redundant currency or more mr. less
subsequent initiation Bank reserves
should now begin to rise. and nv newt
piiHs not sooner We must be pre-
pared re see gold exports on a liberal
scale. the low rates of interest slim
uiated by an excessive and rigid o,,r-
rency supply, being an important slim
uius to such an efflux.