Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-12-05
Great Demands for Money

the issues OF municipal securities
and those of many other business
concerns of a minor character, but
they are quite sufficient to indicate
the extraordinary demands upon
the money market during the last
two years; demands which in con-
nection with huge speculative Dor
rowings imposed an unbearable
strain upon the banks and precipi-
tated the March, August and Octo-
Der Collapses in the stock market
Other influences have undoubtedly
been at work to cause the break
down, but no single factor compares
in Importance with that of the eX-
cessive issue of new securities and
obligations during the past two
years which the country was utterly
unable to assimilate.
Mercantile Circles Revive
The easier conditions which de-
veloped in the stock market also
produced a better feeling in mer-
camille circles. The latter, how
ever, still feel the general restric-
tion of credit which the banks APP
pear compelled to enforce Our
commercial markets are all more or
less unsettled by the tendency
towards lower prices. 1t is generally
recognized that the various markets
have entered into a period Of read
justment which, though less violent
and radical than what has occurred
on the Stock Exchange, must new
ertheless be anticipated and dealt
with accordingly to developments.
The mercantile situation, FORUM
ately, finds itself in much sounder
condition and better able to meet
the reaction than did the stock mar
ket. There, there are few cases of
overproduction, and there is a gem
eral disposition to avoid such con-
tingency by a prompt shutting down
of mills when that seems available.
Quite number of hands have al
ready been unfortunately thrown
out of employment in consequence.
though the percentage of unem-
plorea Is not vet important and is
being kept down by unusual emigra-
ton to the Mediterranean ports this
fall. If reaction is to come in the
MERCHANDISE markets, and that
seems likely, it promises to be more
gradual and more easy to guard
against than was the case in the
financial markets. ~,- 49, s-
Looks for Gold Exports
Before very long we will unques-
tionably see much easier conditions
prevail in the money market. About
$100,000,000 of gold has been en-
gagged or imported; there has been a
large expansion in bank currency
and the recent measures of relief
initiated by the government will in
sure a redundant currency or more
or less subsequent imitation which is
TO be regarded as unfortunate. Bank
reserves should now begin t. rise,
Looks for Gold Exports
Before Yer Wong we will unques-
tionably see much easier conditions
prevail in the money market. About
500, 100000 of gold has been en-
gagged or imported; there has been a
large expansion in bank currency
and the recent measures of relief
initiated by the government will in
sure a redundant currency or more
or less subsequent imitation, which il
to be regarded as unfortunate. Banl
reserves should now begin to rise
and by next spring, if not sooner
we must be prepared to see gold ex
ports on a liberal scale, the low ratt
of interest stimulated by an exces
sive and rigid currency supply, be
/ ing an important stimulus to sucl
an effiux.
Look for Currency Legislation
Currency legislation will un
doubtedly be one of the most activ
subjects of discussion this winter
and it is to be sincerely hoped tina
ideas will be followed which hav
| the support of scientific authorize
and actual experience The chic
difficulty in securing a scientific an,
elastic currency system will be tn
ignorance and consequent multipli
city of ideas which prevail on tn
subject. As a rule, the number O
remedies proposed is in proportio
to the ignorance of the doctors. Tn
fortunately, there is scarcely an
subject so little understood and ye
so vital to the welfare of the cour
try. Congress badly needs san
and strong leader in behalf of SCUM
currency legislation. Short sales
the stuck market should he avoid a