Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-11
RAPID RETIREMENT
Of FINANCIAL
CONDITIONS
FOREIGNERS OBLIGED TO
BUY OUR COMMODITIES
Short Crops and Low Copper
Supplies Leaves Europe No
Other Alternative Save Send
ing Gold to United States.
IBy Morning journal Special Leased wire.l

~ ~ $50 RA' w oAAt ~ -
close on Saturday with conditions
much clearer than a week before. but
with some clouds still hanging over
the financial horizon.
The previous week had closed with
the disquieting announcement that the
New York reserve had lost $4,000, 0O0
in cash in spite OF deposits by the gov
ornment during the week of nearly an
equal sum, representing a net cash
loss of $780, 00, 600. The banks state
ment of yesterday changes this stu
alton. While ii shows a pominal de-
crease in required reserves Of Sl3, 0S5,-
zoo; more han two-thirds of this de-
crease is due to the reserve require
mcnts caused by increase In deposits
because of the taking over of trust
companies by the bankers. Moreover,
the actual cash loss of $4,313.000 is
due TO the system of averaging ac-
counts for the entire week, including
several days before the arrival of the
new gold. Unless demands from the
country are very heavy next week the
arrival of additional gold will more
than offset the loss of cash last week,
n make creditable showing for re-
serve on Saturday next.
The week begun on Monday with a
feeling of grave doubt as to future of
the two trust companies which a
been subjected TO severe runs. The
possibility that they might go down
and drag with them financial struc-
lures which sim stood erect kept Mr..
Morgan, the trust companies repre-
sentative, and other financial leaders
in almost continuous suspense until
last sunday morning n again on
Wednesday until 3 o'clock in the
morning. When il was finally an
nounced early on "Wednesday forenoon
by President King, Of the Lincoln
Trust company. acting as chairman Of
the committee Of the trust company
presidents, that the management of
the Trust Company Of America and
the Lincoln Trust company were to
receive all the assistance they required
in return for deposlting the majority
of their stock In the banks of the COM
mittee the situation cleared, confidence
returned, and the stock market adj
vanced generally from two to three
points.
It was felt that the danger of a gem
eral clash in New York was over and
hat the waves of the storm would
gradually subside. The restoration of
comparative security in New York was
obtained only by demands on the mar
kets OF Europe, which created a ten
ton not before experienced since the
Boer war. Indeed, the Bank Of Eng
land, In order to protect its gold re-
sources, raised its discount on Thurs
day to , per cent, a rate which had
not before been reached since 1873.
The Bank of France raised It's rate for
discounts to 4 per cent. the Bank Of
Belgium to 6 per cen M the Bank
of Germany, at "A special meeting
called on Friday. fixed the unusual
rate of az per cent. II Is not sur
prising that these precautions were
taken to protect European bank re-
..a.. L. .,..a - ~. Soft 4Iut rs.4 L.
$50, 0O0, 900 in gold was engaged by
American banking Institutions within
less thar two weeks. The first ar
rival Of the yellow metal at the critical
moment when the trust company stu
alton was uncertain on Tuesday. Then
came smaller "consignments on We'd
nesday and on Friday the delivery
Of S12,361,0O0 by the Lusitania. The
demand for gold from Europe came
at a favorable time in some respects
for the outward movement Of Amer
can products, of which the leading
ones are cotton and wheat.
The cotton movement has been a
good deal congestcd by the absence Of
small bills in the southern banks, but
everything IS being done by the seere-
tary of the treasury TO aid the south
crn banks in meeting the situation.
The same is true In regard 10 the
movement of grain. which has thus tar
been easily handled at Duluth and
other northwest points with the ala
Of western banks, than has the cotton
movement
New York bankers are sending for
ward 10 the west and south all the
currency they can spare, especially TO
those points where in their Judgment
il Is most needed. The premium on
currency, which rose as high as : per
rent during the week. though u
closed somewhat lower has had q
curious effect upon exchange and the
price Of United States bonds. IL has
disturbed the calculations based upon
gold PARTIES Of exchange and has
made It possible to pay a higher price
To- get gold and to acquire bonds as "a
basis or circulation than II no such
premium prevailed.
one of the features of the situation
thus far Is the small number OF tatl-
ares Of national banks a. compared
with the record Of 1898. At that time
az national banks suspended doing
business. and So additional in June
and August. while during the first
eight months Of 1898 the number OF
suspensions of state n private banks
was as. In the present crisis the
number Of national bank suspensions
reported does not exceed a dozen ana
some OF these will reopen
The week closed with a favorable
situations as indicated 10y tire reports
TO r. G.. Dun & Co. Tho new week
opens with the banking situation in
New York cleared up so far as any
danger 81 further failures or suspen-
sions are concerned with the banking
reserves comparatively Intact ana
with more than S25.OO0.00 on the
ocean 20 strengthen them during tho
coming week.
steady improvement Noted.
New York. Nov. 10.-The progress
~ last week WAS a steady improve
ment in financial conditions in New
York which was reelected I'm strong
closing quotations in the stock mar
ket. when the crisis arrived IN New