Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-04
IMPROVEMENT
IN FINANCIAL
SITUATION
C0RTELY0U HELPS TO
REVIVE CONFIDENCE
Announced Policy of Treasury
Department 10 Help Out in
Crop Moving Period Brings
Ray Of Hope TO Wall Street,


Especial Cerresposdsnse Morning journal
New York. Aus. 3f-some improve
ment can be recorded In the financial
situation. which was due partly to re-
dictionary influence. partly 60 the salts
factory policy Of Secretary cOrtelyou'
and partly 10 the efforts to take up the
new forty million New York city bond
issue. which indicates reyiying conf
fidcnco. After such a violent reac-
iiOn az has been experienced during
the present month. a partial recovery
was 10 be expected: because liquida-
ton had cen exceedingly thorough,
and tho purchase ~ an important
short Interest contributed 20 the rally.
whether liquidation has reached the
end or not, II Is somewhat premature
10 decide. Much depends upon the
fuurc course OF the money market.
The credit situation has undoubtedly
been greatly improved by recent liqui-
dalton, and his Of Itself should afford
substantial relief. The outlook. how
ever. for tine money market continues
uncertain. High rates are likely pre-
VAN through the balance OF this year.
though IL Is Ia be hoped the extreme
figures reached two or three years ago
will not be repeated. Nevertheless, II
ia idle 10 conceal the fact that there ~
moro or less anxiety concerning the
monetary situation, Very shortly we
shall be In the midst Of the crop NOV
ing season. The prospects are for
fun average crops, II we escape early
frost. and az farm values are upon an
unusually high level. the moneary
requirements this fall viii inevitably
he heavy. According 10 at accounts
business In the interior continues upon
an active scale, and as values OF all
commodities are very high. the re-
uuircments for business purposes must
be- corrcspondinEly large.
Had u not been for liquidation IN
the stock market. the strain upon a
monetary would have been
exceedingly serious, N not disastrous
Az N ~. the legitimate autumn de-
mnnds must be faced, and the de-
mnnds from financial circles viii be
held IN allegiance for some time 20
come. the New York CITY bond issue
being an exception, II Is quite evident
that wan street VIII not be able to
obtain anything like the accommodn-
lion in London with which u has been
favored for several years past, ana
even Paris aud Berlin are becoming
shy OF American borrowers. Fortu-
natciy for us the strain In Europe ap.
pears 90 have boon partially relieved
sine. had " been further aggravated,
We should have been compelled 20
NNNNN ~ ~
our present stock Of gold. Grain ana
cotton bills should soon be In larger
supply. thus tending 10 discourage q
efnux of the precious metal, our cN-
ports 81 merchandise continue large ~
volume, and az the present high prices
obtained for our products. the net re-
suit should be a continued favorable
trial balance. At the same time our
imports are also running heavily ana
keeping down the former large excess
OF exports.
The chief danger IN the future H. a
crisis IN the moncy market. " " 10
be hoped that hin will be nvcrted ~
the. result Of past liquidation and
through prudent action by the banks.
The latter should continue to lend
freely 20 all sound, going concerns,
since an undue curtailment of credit
NJ this time might easily prccipitate
disaster. or course the blow Ia wall
street viii be fci; indirectly In Indus
trial and commercial circles, particu-
latly In respect TO new enterprises. OF
the enlargement Of Did ones, Wall
street has unquestionably pretty well
discounted an n%nfavorahle conditions
ant further reactions In securities
ought 10 bring prompt rallies Tbs
commodity markets. however, ave
not shown any general tendency 10 re
Ucdc from tho present abnormall,
high level. Costs of production haN'
hccn greatly enhanced by the rise "
labor commodities. This fact ha'
more 10 do with the present s%tringenc,
in money than II generally supposed