Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-02

rho Commercial National bank. o
chicago. recently made what Is con.
coded fa have been m unusually thor
ourh canvass Of the financial manu-
factoring aud commercial men and m
eftuiions Of the country 90 ascertain
their views on the business conditions
and outlook and has issued a state
mcnt. saia 10 be based on about 30.
GOO replies 10 az questions, which is
q model ~ clear and compact sum
marizlng. The conclusion. which APP
pears 20 be Inevitable from these sta
,%lsiics. Is that capital has deserted the
speculative market because needed for
production and distribution, for which
purposes highly remunerntive interest
rates are offered by concerns " the
highest credit The demand for those
purposes Is causing investors 10 sell
high-grade low-interest-rate securities
at lower rates han have hitherto pre-
vailed. and f. The immediate cause OF
the stagnaiion IN the security market
and the steady sag In prices Of Sc
curities.
IN reviewing the action of the chi
cage bank. and the state OF things
which n develops. the 10 Francisco
Chronicle finds that the prime cause
a the waste Of recent vars. enormous
Investments. not Immediately produe-
tive. IN nndevelopcd countries and the
extraordinary demand In older
tries for all manner Of new enter
prlses. and extensions and betterments
IT,. those already established. More
money Is called for than the world
possesses. Those who will pay most
FOR " viii get Il and others must wait
until tho waste ~ war mas been made
good and THE money going into the
plants and instruments Of production
and distribution begins 90 yield diyi-
dcnds Meanwhile rates NJ interest
are going up IN all parts of the world.
There Is no likelihood Of any change
IN the near future. but q has come on
30 slowly that business was able 10 adj
iusi itself what has happened Is
that business has slowed down The
country IL probably doing less bust.
ness ihan q did last year n ls doing
. great deal less than We expected 20
this year Hut We are doing what we
should have thought ana enormous
business a few years ago.
For n long time past, the Chronicle
tells us. the banks have been closely
s%crutiniziuK loans and refusing ac-
cDmmodaiionr for new enterprises and
extensions They are an taking care
81 their regular customers up Ia the
requirements 81 such business as they
have hitherto carried on They are
also. in this city aud elsewhere. con-
serving their funds for thc purpose ~
moving The crons which an banks re-
gard as theii highest duty
while % IS generally believed That.
taking the county AZ a whole. the yol-
umo or the crops 60 be moved viii be
less han last year and therefore less
strain on tfanHpurtation-it D. also be-
ueved that owing TO the better prices
which prevail. the aggregate Of money
received viii be quite as large as that
of last yeAr That o. assumed TO as
sure She saiesbllty NJ commodities
nnd ~consequontly the meeting Of pa
per issued against them AZ maturit,
And That is the essence 81 a sound
financial condition
There la Il scarcity ~ money every
where Or mortgage loans. SAYS the
Chronicle because funds which ordi-
rarily seek such Investment are d.
vcr'ed Dos interest rates higher than
real rsflic has been accustomed 10
pay % D. evident that borrowers viii
have to pa5 higher rates han those 10
which .hey have been accustomed ot
a. without The money. savings hanks
Ore San Frar isso wr are Informed
are making renewals and small loans
and tu solur fstfrf accommodating
old customers with sew loans al : and
~ per cent They are 1ut makiue
loans or lending at all io those who
have not done business w.th them be-
fore. They hsfr MOT ilo money he-
cause thry have in Keep tho.r reserves
much higher tnsu H usuat Cor ihe
high Interest rate obfalnah.e o. Undue.
Ing some denositors io Withdraw fr-
other Investments Tons necessity ~
keepinE more ready money than usual
on hand % course diminishcs Che abii.
lfF fu luan.
AH q iaai t. sound %reasoniuE and
ary com peieni observer % current
events must see AZ a glance that such
conditions prevail not only in Califor-
ola. bud ln New York. and New Mex
ico. and every here ci-e in the United
STATES because the American nation
has becomr - homogeneous that a
blow sifuck 81 any particular part or
division & she system Il feit b. the
entire bods psliiir. aud the excellent
reasoning Of TIE ehronirie spsu ts
subject serves 10 sustain la an able