Omaha daily bee., 1907-10-30
Brokers Refuse to Make Deals Except
on Cash Basis.
LARGE BANKS GAIN IN DEPOSITS
asoney that was I'm Institutions that
were Under Suspicion again
Available for Busineas-
Call Money Lower.


American staples-wheat, cotton, copper,
tobacco. oil, meats-are on their way to
Europe, this being the season Of the year
when American products marketed
abroad. The immediate effect Of these
shipments Is to give the United States
credit abroad which can be speedily con-
verted into cash. These natural resources
of the country promise to exert even
greater influence than the sale of American
securities abroad. The latter have to some
extent suffered dscredt under recent pres
sure. but the intrinsic value of American
staples used abroad and their colossal ag-
Rregate at this period of the year is be-
yond the reach of financial distrust
The foreign sales OF millions Of American
copper yesterday were supplemented today
by reports OF similar heavy exports today
shipments alone giving a foreign credit of
sY4.OOOOOO. The shipments Of tobacco to
Europe this year promise to break all rec
ords. oficials of the American Tobacco
company estimate that the years exports
will exceed 6OOOO,OOO pounds OF manufac-
tufed tobacco which is far in excess of
the amount exported last year. Europe
win nay over S1OO,OoO,OOO for this tobacco
and much OF this money will soon be avail
able in this market. as the contracts with
European importers call for immediate pay
ment on delivery. Shipments Of tobacco TO
Europe will begin In November and De
cember. Reports from the south show that
the cotton crop is moving toward Europe
while the west is sending grain and meat
products in the same direction.
More Gold Engaged.
Several favorable events marked the elose
of the financial day in New York. The en-
zaeement of 100000 in gold by the First
~ hX
a Boston bank brought the total gold en-
gared for the week close to $9O,OOOO0O, in
spite of the cancellation of an order for
seOaOoO by the Russo Chinese bank upon
/, the ground that the amount .ensaEed ex-
s.eeds necessities. The raising OF the Ger
IMAM rate of discount in order to prevent
America from drawing German gold pro-
duces little effect on the situation, as none
OF the Koid enEagements thus far have been
made IN Germany and most of those antiei-
pated were from other European money
markets
While money at the stock exchanges was
loaned during most OF the day at high
rates, It fell near the close to per cent
offers OF several million dollars at that
rate being made by a number Of leading
baIks.
Large Banks Gain Deposits.
Comparative calm reigned among New
York bankers. They all realized that the
pressure for money was not over, but they
felt generally that unreasoning panic was
at an end. that they would be able to
meet All reasonable demands for currency.
These demands are coming in considerable
amount from the west and south in order
TO obtain money to move crops, and 1t. is
feared that the sections where the move
ment is largest may be moro or less
hampered in their efforts TO retain funds.
The general refusal TO pay cash for hoard
ing. In the west and south as well as In
New York, It is believed win prevent the
undue absorption OF currency and permit
the employment of what is available I'm the
most effective manner. The largo banks
of this city are gaining deposits from tho
banks which have been under suspicion
and this tends in a measure to concentrate
money whore II con be used most effec-
lively but on the other hand 1t created
debit balances at the clearing house against
the banks which are losing deposits, which
are not always easy for them to meet
without sharply curtaiung their loans, even
with the assistance of clearing house GER
tifcates.
Runs upon the banks are practically over.
Persons who present large checks and ash,
10 consult the bank oficials. In cases
whore their need for currency is evidently
legitimate they usually receive It. In cases
whore Il Is sought for boarding they are
usually convinced that money is better on
IN the banks or that they should accept
certified checks for deposit elsewhere.
The arrival OF nearly so 10000 in gold. II
Is believed will considerably relieve the
situation and perhaps make call money a
little lower on the Stock exchange
The decline IN stocks today was generally
attributed TO the continued scarcity OF
money for speculative purposes. the refusa
Of brokers to make transactions except fol
cash ana the absence OF buying interest,
under present disturbed conditions
No More Failures.
Aside from the satisfactory local condi
tions. reports from all points showed a IA
vorable tendency. In New England ther,
WAS ~ sign OF serious unrest. and the re-
cent disturbance in Rhode Island is pracu
cally over. No failure was recorded az any
point throughout the country II should b'
born in mind In this connection that ther,
are over 1850 banks in the United statel
and that the number Of institutions whiol
have recently failed Is OF Insignificant pro
= portions as compared with this total 1
was pointed out today that the failure OF
minor bank Is Immediately known from
end to end OF the country, whereas the pub
lic overlook the fact that some 1850 bank
are open for business and that no import
ant banks anywhere have shown the slight
est signs OF unsoundness-
on the whole, the banking community
takes favorable view OF the outlook and d
practically encouraged by the large credi
secured through enormous shipments o
American products
The subtreasury today transferred 70
banks nt0Oo IN currency 20 San Francisc
lcontlnusa on second Parel