Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-11-02
BUSINESS OUTLOOK
IS ENCOURAGING
Adoption Of Certificate Plan 0p-
crates to Advantage Of Salt
Lake Bankers.
DOES NOT IMPLY WEAKNESS
prt Merely Means Of Protcctlon--If
Necessary Banks of Country
Could Raise 5000, 900. 900.

The local commercial situation Is
encouraging. as the recent financial
stir does not appear to have any no.
tceable effect at this degree Of longi-
mde west Of the New York money
meridian. In banking matters. the IL
rancial situation has been one OF spe-
clal interest for the week past, par
tcularly that phase Of Il rejecting the
action OF the banks in putting into
operation the clearing house certificate
plan first adopted in New York years
ago. This has been found to work so
well that at every period Of financial
excitement IL has been adopted again.
the benefits resulting from the plan
being so very manifest that the lead
ing cities OF the country made II their
policy; and from reports received It
mas taken exceedingly well TO the sat
isfaction Of the intelligent business
part Of the community.
The adoption OF this plan by the
salt Lake banks does not in any man
ner imply weakness, but was done as
"a matter of protection 10 themselves
and the public. The normal supply
of currency that comes from the OUT
side being cut or. left the local supply
Inadequate to meet the demands All
OF the Salt Lake banks keep large
balances in the large cities, especially
I'm New York and when the banks In
these cities refused TO pay out cur
rency and ship to correspondents, II
compelled the local banks TO do me
same
COULD RAISE s20O,oOo.Ooo.
II is inconceivable that this situa-
lion can occasion WY widespread in
Jury. as there are sources from when
ready money can be obtained lhdl
ought 20 relieve the situation short
Iv. The first Is for all national banks
which have the privilege of taking out
additional currency on the deposit ~
United States bonds to do so. IT they
have not the bonds. they can easily
borrow from the banks mat have them
The fun appp -ation Of this privilege
would put 100000 I'm circulation.
Then again, II Is possible that the
governme.t would make additional de-
posits in banks on their putting up the
security required by the secretary OF
the treasury This security need not
necessarily be government bonds, as
first class bonds outside Of the gov
eminent bonds are accepted Tor the
purpose ne hlAAM aNNAA' "a AN.A-A
IS obtaining gold from Europe. II Is
true that the main European banks
have advanced rates with a view 70
keeping their money al home; but the
United States can afford to pay for
gold al "a rate that the foreign coun-
tries could not resist, and the goid
,vould come. Now il may not be neces-
sar,- IN nut anv of these agencies into
operation for 81 Is probable that the
situation WIN presently clear up.
FoREsEEN BY PRUDENT MEN.
All prudent men have foreseen this
condition, and some, as they admit
wished 70 would come to stop this fren-
zied desire for speculation which always
leads 20 imitation and ultimate disas-
ter And it is quite certain when these
conditions have passed away, the le-
gitimate interests of the country viii
hc benefited by the experience. IL is
matter Of local belief that there are no
banks In the country which hold larger
reserves 70 protect their deposits than
the Salt Lake banks. Some Of them
hold twice the reserve required by law,
and some even greater margin than
this.
Tho condition Of the country at large
indicates no signs Of weakness The last
quarterly report Of the United States
Steel corporation showed a most grati-
flying condition OF their earnings. with
enormously large orders booked ahead
The railroads still have more business
than they can probably handle while
their gross earnings are I'm excess OF
any previous year. with the net earn
iugs also showing an increase. notwlth-
standing the much higher prices they
have TO pay for lapor and material
The packing interests Of the country
are in satisfactory shape, with the val
ne OF all kinds Of meat products well
up IN the scale. The favorable weather
has permitted the corn crop TO ripen
So that fears Of a short corn crop have
passed away; and although the crops
generally are not up 20 tho high GUAM
unuve standard OF last year. yet their
worth represents much greater vol
umc Of money and there Is n large de-
mand In Europe al high prices FOR
everything I'm the shape OF staple food
we can spare them. Then, the manu-
featuring Interests arc also nourishine
with no reports OF curtailment OF pro-
ducts So taking the country as a
whole. the situation looks very encour-
aging
REALTY STILL MOVING.
The real estate market during the
past week has been one OF eomnOl-
ency A. far as ANYTHING Spectacular
IS concerned. but dealers report that
The demand for houses Keeps up
steady pace. though not quite 30
strong as IL has been. MANY now
comcrs are stopping In lodging ana
apartment houses until such times as
they can Ind empty houses. but udq-
ing from the rapidity with which now
houses are being erected In the south
eastern part OF the town. one would
imagine "a vigorous building era was