New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-02
TRADE ACTIVITY AND MONEY.

A year Of record breaking harvests and OF
great mineral production responsible In
great part for the uniform trade activity
throughout the season just closed, and this &c
Eiyity in turn was responsible for the longest
period Of high money ever recorded IN the
call accommodation We're abnormally high IN the
last four months Of the year. borrowers not only
being compelled to pay the legal rate but a
commission in addition, which at times amount
ed TO 10 per cent for thirty days accommo-
dation In all parts Of the country the demand
foI money In connection with trade and specu-
iation was most urgent, and a consequence
the reserves of the New York banks were at o
low level in most weeks OF the year. the heaviest
holdings for any week In the reserve above
legal requirements being S19 991 CO., in the week
OF July p. Prior to that time the reserve aver
aged in the neighborhood OF S6,000,000, while
after that time there was e gradual reduction
TO November 10. when the reserve above legal
requirements was completely wiped out. In the
TolloNlng week the reserve Was restored but in
the week of December there was a deficit Of
more than SG00GO00, in the succeeding week a
deficit Of 81 10000, while IN the last two weeks
the figures were better showing small
plus. The weakness In the reserve compelled
the banks TO reduce their loans, and from the
high point Of the year, recorded on October 20,
when this item amounted TO 81 ,0S2 1913 800 there
was decline TO SLOT, $4,000 IN the week ended
December 20, while il tho last week slight
expansion recorded. Although there was
received In the year the port of New York
more than S190,0c0.D00 in gold and while the
Secretary of the Treasury placed government
House institutions the close OF the year
showed cash holdings of only 100000 more
than in the first week Of January, 1906
The monetary requirements OF San Francisco,
incident to the earthquake and fire, caused
shipments Of money from this centre to the Pa
cific Coast of upward Of S5O.oD0.0DO, and prac-
ideally all Of this sam has been retained
sn the stricken city. In addition TO this large
outward movement Of currency the local IN
rtitutions were compelled to finance the largest
crops record which took from New York
more than $50 900 900 net most Of which went
10 the Middle West and the South The enor-
nous crop requirements readily may be appre-
ciated when examines the government fig
urs Of the yield Of the various agricultural
products I'm the year just closed. OF corn there
were gathered 1851 GOO bushels; OF wheat,
139 $50 900 bushels of oats. IA 52SOG0 bushels:
13.6sS.000 bushels, making the total yield for
the six leading cereals. 467214I 900 bushels
compared with 4, 533. 81 $50 bushels in 1900,
when, IL may be recalled, record breaking crops
harvested. Expressed In money values
the crops Of 1906 represent I91.UO0.Ooo.
against 5000 100000 In the preceding year, an
increase of per cent Compared with 1904 the
increase WIS 10 per cent. and with l9ib3, 10 per
cent. IF Il had not been for the relief anorded
the money market by the federal government
great distress would have developed I'm Wall
Street. as well as in the country at large ana
the fact that Secretary Shaw was able to place
in the channels OF trade large sums of money
end 20 deposit with banks gold pending the az
rival % an equivalent amount Of the metal from
abroad. testified 10 the prosperity OF the coun-
try. inasnucn as The ssecretary was able 10 do
these things only through he government .
large excess OF receipts over expenditures. theSe
heavy receipts being due to the increased pur-
chasing power OF the people reflected In enor-
NOUS payments 10 the Treasury on customs ana
Internal revenue account.