The Grit-advocate., 1907-11-01
EUROPE DEMANDS ENORMOUS
AMOUNTS OF STAPLES FROM
UNCLE SAM.
THE PANIC HAS FAILED
THE UNITED STATES is EXPORT
ING LARGE QUANTITIES AND
GOLD COMES OUR WAY.

erting in building up credit balance
abroad has been the most signal devel-
Opment of the financial situation today.
Reports from all quarters show that
the great American staples-wheat,
cotton. copper. tobacco. oil, meats
are on their way to Europe. this being
the season of the year when the Amer
ican products are marketed abroad.
The immediate effect of these ship
ments Is to give Americans credit
abroad which can speedily be convert
ed into cash. These natural resources
of the country promise to exert even
greater influence than the sale of
American securities abroad. The lat
ter have to some extent suffered dis
credit under recent pressure, but the
intrinsic value of the American staples
used abroad, and their colossal aggre.
gate at this period of the year, is be-
yond the reach OF financial distrust.
Copper Sales Continue.
The foreign sales OF millions of
pounds of American copper were sup
plemented by reports of similar heavy
exports. one days shipments alone CIV
ing a foreign credit of $14,0000O0. The
year promise to break all records Of
ficials OF the American Tobacco Com
pany estimate that the years exports
will exceed 50,0O0,0O0 pounds Of manu-
factured tobacco, which is far in ex
cess of the amount exported last year.
Europe will pay over $100,O0O.OOO for
this tobacco, and much of this money
will soon be available in this market,
as the contracts with European import
ers call for immediate payment OH de-
livery. Shipments of tobacco to Eu-
rope 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.
The raising of German bank rates
in order to prevent America from
drawing German gold produces little
effect on the sitaa ion here, as none
of the gold engagements thus far have
been made in Germany, and most OF
those anticipated were from other Eu-
ropean money markets.
Bankers Feel Safe.
Comparative calm reigns among
New York bankers. They all realize
that the pressure for money is not
over. but they feel generally that ul-
reasoning panic is at All end and they
would be able to meet all reasonable
demands for currency. These demands
are coming in considerable amounts
from the West and South in order to
obtain money to move crops. and it is
feared that the sections where the
movement is largest may be more or
less hampered in their efforts to obtain
funds. The general refusal to pay cash
for boarding, in The West and South
as we'll as in New York, it is believed
will prevent the undue absorption of
currency and permit the employment
of what is available i'll the most ef
fective manner. The large banks of
this city are gaining deposits from the
banks which have been under suspic'
ion and this tends in a measure to con,
centrate money where it can be used
most effectively hni on the Other hand
1t creates debit balances at the clear,
ing house against the banks which are
losing deposits which are not alwayH
easy Ior lneln to meet ",,n"., o...!.
curtailing their loans. even with the
assistance of clearing house certifi-
Gates.
Runs Practically Over.
Runs upon the banks are practically
over. Persons who present large
checks and ask for their payment in
currency are invited to consult the
bank officials. In cases where their
need for currency is evidently lcgiti.
mate they usually receive it; in cases
uyh &c oh far hnn
usually convinced that money is bet.
ter off in the bank or that they should
accept certified checks for deposit
elsewhere.
The arrival Of nearly $2O,OO0,OOO in
gold, it is believed, will considerably
relieve the situation. and perhaps
make call money little lower on the
stock exchange.
The decline in stocks was generally
attributed to the continued scarcity of
money for speculative purposes, the re.
fusal Of brokers to make transaction
except for cash in the absence of buy.
ing interests under present disturbed
conditions.
No Failures Recorded.
Aside from the New York condi.
tiOns. all points showed a favorable
tendency. In New England there was
no sign of serious unrest, and the re.
cent disturbance in Rhode Island is
practically over. No failure was rec.
orded at any points throughout the
country. 1t should be borne in mind
In this connection that there are over
1880 banks in the United States and
that the number Of institutions which
have recently failed is of insignificant
proportion as compared with this to-
tai. 1t was pointed out that the failure
of minor bank is Immediately known
from end to end of the country, where
as the public overlooks the fact that
some 1880 banks are open for bust.
ness as usual. and that not one of the
really important banking institutions
anywhere has shown the slightest sign
of unSoundneSs.
On the whole, the banking commun.
ity takes favorable view of the out
look, and is practically encouraged bv
the large foreign credit secured
through enormous shipments of Amer.
lean products