The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-06-18
A REVIEW OF
THE FINANCIAL
SITUATION
CAUTION IN REGARD TO MONEY
OUTLOOK AFFECTS THE
SOCK MARKET.
THE AVAILABLE RESOURCES
Failure of Big Steel Corporation Did
Not Help Prevailing Con-
ditiOns Any.

NEW YORK, June 1.-THE finan-
cial markets have begun to canvass
the obligations which must be met In
the coming half-yearly settlements
and to take account of the resources
which will be available. The absten-
tion from any active participation In
the stock market, which has been IN
cresingly manifest, is prompted, to
large extent, by caution owing to the
money outlook. The requirements to
be met this year are unusually heavy,
and the banking position Is below
the average for the season. The divi-
dend and the interest disbursements
on July 1st will be very large, as the
halt in business activity has not yet
involved reduction in the rate of dis
bursement on securities. The posi-
tion is complicated to some extent by
the decision of the New York City
authorities to sell $29 100000 of
bonds during the present month.
There will be due also Oh July 1st
an installment of subscriptions for
new Northern Pacific stock, which
will call for over 100000. The
condition of the New York clearing
house banks, on which the principal
burden of the settlements will fall
has been declining rather than i'm
proving, the surplus reserve of those
institutions now standing at 514,-
625, compared with. $7,073,375 In
this week a year ago. The compila-
tion of the reports of national banks
throughout the country for May
goth was made up at Washington
last week and revealed the extended
credit position the country over.
Compared with the preceding state
ment on March 22d, loans had ex-
panded some $95,299,693, while the
comparison with June 18th of last
year showed a growth in the loan
item reaching the formidable total of
$424,253,613. For the eleven months
period the national banks had added
but $40,35S,544 to their cash hold
ings, and of this amount $35,371 ,597
had been secured in the sixty days
preceding the statements. A COM
parison of the changes for sixty-day
items of the New York bank state
ments, shows that the clearinghouse
banks in that time had expanded
loans $74,849,100 and cash holdings
$32, 2,752,30O, accounting for a large
portion of the changes made by the
national banks as whole. The In
ference is plain that the interior
banks were recalling credits placed
in New York for use at home, while
the New York banks were called
upon to replace the loans thus re-
called. The deduction to be drawn is
of restricted facilities available for
meeting the July 1st requirements.
The decision of the secretary of the
treasury to recall $30,000,000 of
government deposits on July 1st will
defer that operation until after the
payment for redemption of the per
cent. bonds on July 18th, which the
treasury department estimates will
amount to $36,0OO,O00. This leaves
margin of possible benefit to the
money market of $6,000,0O0 when
the operation is concluded, but the
final delay in presentation of govern
ment bonds for redemption is ex-
pected to postpone the full effect of
the bond redemptions on the money
market. Efforts at recuperation In
foreign money markets, especially In
Paris, have placed burden on the
New York money market by gold
Withdrawals and have helped to de-
plete the resources of the New York
banks.
The gold export movement was in
terrupted last week, bus the sus-
tanned firmness of foreign exchange
led to it's resumption at the end of
the week. The Paris market made
a payment of $4,OO0,000 during the
week for a shipment of New Haven
railroad notes, which helped to keep
down the power of the Paris banks
to draw gold from New York. The
position of the Bank of France is
much weaker than at this time last
year, and it's work of recuperation
may be extended before the first of
July.
The receivership for an important
steel construction company in New
York during the week was an un-
pleasant incident, but not SO much