The Dolores star., 1907-08-30
THIS 10 CONSENSUS or opIMIon
AMONG THE BANKERS or
THE WORLD.
INCREASE IN DEPOSITS
EXTRAORDINARY DEMAND FOR
FUNDS IN ALL LINES OF sUsl-
NESS. cay LENoERs.

evidence gathered by the Commercial
National Bank of Chicago from 30 900
correspondents over the country. It's
summary of the Crop and Business
Report" is as follows:
I'VE endeavor in this summary to
present to the public an answer to the
question which all men are asking:
rs the business situation sound and
the outlook assuringf
This answer is drawn from a COM
posite picture Of conditions as graph
ically described In letters from thou
sands Of banking, manufacturing
and merchandising correspondents
throughout the country. Not far from
10000 separate replies enter into the
picture before us and the definiteness
of the image is remarkable. There is
no vagueness or blurring about It. 1t
10 clear-cut and incisive.
THE overwhelming prepOnderanca
Of evidence is that the business situ-
alton Is sound and satisfactory. Not
one of the thousands of replies mega
tives this conclusion In definite terms
That there has been a marked easing
down from the tension of the spring
and winter months Of the year Is gea-
orally admitted, but 1t is admitted
without trace Of regret or misgiving.
The country had been rushing ahead
at a whirlwind pace until the tax oil
credit and capital accumulations COM
PEELED respite. The demand for
goods to meet instant needs or to re-
place other goods destroyed by wars
and calamities or to provide for tho
certain needs Of the future has been
unprecedented. To meet this II has
been necessary for the manufacturers
and distributrve agencies Of the entire
world to employ almost every availa-
BILE unit Of money and to put into ac-
ton every potentiality Of credit The
result is too familiar to all men OF af.
fairs to need exposition. The strain
on the money centers of the world has
been very great. In ordinary times the
stringency of one country is OFFSET or
relieved by the plethora of another,
through the commonplaces of the
mechanism of exchange. But 1t has
been different since the peace OF
Portsmouth. There is no easy money
in the civilized world today.
The composite picture drawn by
our correspondents tells a wonderful
story Of relentless warfare on the wild
places of the continents; 1t shows a
marvellous picture of advancing stand
ards of living among the people Of this
country. And precisely in the same
way the money conditions of Europe
tell similar stories of warfare ON the
wilderness of Africa and Asia and SIM
liar stories Of the pushing of trade and
of the advance of civilization among
the simple peoples Of the world.
The Speculative Market.
ITO suggest an idea of the urgency
of the demand for capital to expand
and equip the productive capacity of
industry SO that it may be ON par
with the fast-increasing consumptive
demand for the things of modern life
we call attention to the world-phenom-
enon of stagnation in the purely spec
| ulative department of affairs. Recently
we had seen a record low price for the
British consolidated debt-'consols'-
indicating that the rewards of capital
| In industry are SO attractive as to
| prompt withdrawal of funds even from
the acknowledged chief of investment
securities. The same phenomenon In
its application to the funded loans OF
all governments except our own-and
for this there is special and artificial
reason-and In its application to the
bonds and shares of the exchanges
Is further light on the tension which
is everywhere felt in money affairs.
1T is curious and striking fact
that in all the thousands of replies
which enter into the picture of the
business situation before us there is
hardly a reference to the speculative
lethargy which contributes SO large 8
part of the news from day to day
And yet 1t is a truism familiar beyond
need OF mention that the security mar
kets exist merely as governors OF the
supply Of mobile capital. OF necessity
their activity must decline when eco
nomic forces drain from their stocks
of stagnant capital. When the mobile
capital Of the world is needed in pro
ductive enterprise or in distributive
service 1t must necessarily desert the
stock exchange. and security specula
ton must inevitably wane before the
necessities and overlapping import
ance Of industrial activity.
Money Demand and Credit.
"The bankers of the country. with
few exceptions in the Far West, report
an extraordinary demand for funds In
all lines Of business activity. Interest
rates are very firm everywhere and ir
the central reserve and larger reserve
cities the inquiry for funds SO much
exceeds the supply that money is de
scribed as very tight The range ol
our investigation justifies the conclu
sion that bank deposits show a straight
average increase Of about 14.2 per cent
as against similar average increase
OF 10.S per cent. In the loans. Tha
averages weighted according to the
relative magnitudes of the totals woult
probably show a closer correspondence
between the growth of deposits and oi
loans. 1t is significant that he statef
OF primary production in agriculture
and mineral products show q larger
margin OF deposits over loans than the
states OF secondary production. that n