The Washington herald., 1907-12-02
Improvement Is General.

But such refiectiOns are really az The
moment beside the mark. That a great
and fundamental Improvement in financial
sentiment made itself felt the country
over last week is not open 70 any ques-
ton whatever. The premium on currency
began 10 fail of in a way that indicated
its total disappearance within q short
further time. Rates for money contin-
ually ceased and time money was offered
at prices considerably less prohibitlve
than they were earlier in the month. The
bond market was decidedly better
Fears that were expressed the week be
fore that the Bank OF Englands discount
rate might be raised. were dissipated in
view of the steady fan in the rates for
discounts in the open London market and
OF the very strong weekly statement Of
condition OF the bank made on Thursday
The proportion Of the banks reserve 10
Liabilities. which in IN, previous week
was SS.1S per cent, rose 10 42S3 per cent.
and Il is evident that the bank has man
aged 20 Offset by drafts on reserve stores
OF money in England and the continent
Of Europe the greater portion Of the loss
II sustained by shipments OF funds %
this side Of the Atlantic
The material Iessening OF the money
stringency during the week was the key
note 70 the course OF our security market.
and this in turn was the inevitable re-
suit not only OF the huge gold imports
and the additions to bank note circulation.
but OF the immense sweep and force of
eeoncmizing practices the country over.
curtailment has taken place in genera,
business transactions as sudden and dras-
tic as any that has ever 50 occurred in
our country's history. All over this great
land. from the smallest hamlet TO the
most luxurious home in its largest city.
people are saving money. and even were
the process being less vigorously enforced
than il is il could not and cannot fail 10
cause any other than an accumulation Of
idle money in depository institutions and
a resultant fall in money rates.
HOardinE of Money ut End.
Whatss wanted now with Us more than
anything else is a return Of confidence
development that is, indeed. already
rapidly unfolding The boarding OF money
is practically at an end. certainly on the
part of private individuals Banks and
similar concerns are naturally still keep
ing a rather -ight grasp on their funds
and il does not seem probable tina;
SNAlCln nl resumption OF caSN payments rs
Immediately at hand. The weak spots IN
both the local and national situation have
not been altogether eliminated. and as
long as the large banks in this city re-
ceive as they still do every day requests
from interior banks for the shipment Of
money 20 them. which. upon investiga-
tiOn. is found 10 be desired not for neces-
sary use, our New York banks are not
likely TO favor letting down the bars that
have been raised New York banks have
suffered during this time OF stress from
the fact that they constitute the great
banking center Of the country. and that
some of them have been injudlcious bid
ders in past years for the deposits Of
Western financial institutions The Gus
tom prevails also. as IS well known. OF
banks outside the central reserve cities Of
the country leaving Il certain portion of
their own reserve with banks in these
central reserve cities. When such a de-
sire on the part OF every person 20 OBJ
tain possession of ready funds rushes
over the land as has Just been witnessed. |
the banks in the central reserve cities /
are forced 10 protect themselves more !
strongly than do their neighbors.
They are the ones that are relied upon 1
to help everybody. Their reserves form 4
the strong towers TO which all the peo-
pie fee Cor safety. In Z sense, the whole !