The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-11-18
OUTLOOK SAID
TO BE BRIGHTER
Gold Arrivals From Europe Be-
lieved to Have Helped Stu
alton Over Here.

New York. Nov. f7.-Another eventful
week in the financial world closed Sat
urday with conditions in New York great
ly improved. Even with the arrival of less
than half the gold which has been en-
gagged abroad, the figures of the bank
statement no longer show the sensational
losses of the previous two weeks. On
the contrary, they dropped back to
changes as insignificant in amount as
during the dullest weeks of a midsummer
free from any disturbance. The nominal
decrease in the required reserves does not
represent the actual strngth of the banks
on Saturday, because under the average
system it gives only partial weight to the
considerable arrivals of gold at the end
of the week If conditions had been re-
ported for Saturday instead of the usual
average for the week, they would prOba-
bly, have shown considerable increase in
required reserve and an increase in hold
ings of specie. The losses shown by the
average system, of 1864, 100 in specie, and
fraction Of the sum of about 5000 90
surrendered to the treasury to maintain
its cash balances.
Gold to the Amount of $66,ooo,ooo.
Gold engagements made on Friday
amounting of themselves to about six
million dollars, brought up the total en-
gagged thus far for America to about sixty
four million dollars and of this amount ii
is estimated that S33.191 900 has already
been laid down in New York or the other
American points for which it was des-
tined.
The premium on currency has practic-
ally the effect of a premium on gold and
promotes gold imports under conditions of
foreign exchange where they would not
occur if currency and bank credits were
at par. In this respect. the necessities
of the situation have made the premium
effective in promoting the importation of
gold, but the premium declined during
the week, and IL is believed by leading
bankers that il will disappear within the
next week or ten days if nothing unusual
occurs. Reports from interior points in
dictate that the scarcity of currency is be
ing overcome and that in some cases there
is less use of clearing house certificates.
Lacking in This Country.
If favorable conditions continue. the ne
gOtiations for obtaining gold in large
amounts directly from the Bank of
France, with the approval of the govern
ment of the United States. will not have
to be renewed. These negotiations have
brought into relief the fact that the New
York market has no central banking
power like the Bank of France or the
Bank of England. with which negotia-
tons on behalf of a foreign bank can be
carried on.
Negotiations reported from Paris derive
picturesque future from the assurance
that the United States government would
be gratified' if the arrangement were
made, 1t is not customary for our gov
eminent to openly promote through diplo-
matte channels any business enterprise
but it is always considered good diplo-
matte usage for the American ambassa-
dor or minister to aid Americans of stand
ing I'm formal introductiOns without acting
in his official capacity. The action taken
in the present case, undoubtedly with the
consent Of Secretary Root, apparently did
not go essentially beyond this, although
it may have been conveyed in a slightly
more formal manner. European govern
ments. however. hesitate less to act
promptly in behalf of the financial and
business interests of the country when
they see an opportunity to render ser
vice.
Proposed Bond Issue.
The proposed issue of bonds for the con-
strUCtiOn of the Panama canal which was
discussed in the Associated Press dis
patches some ten days ago, would aid the
money market materially if payment for