Bisbee daily review., 1907-09-13
FINANCIAL CONDITION.

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 We take the following extract from the financial letter of Henry Clews, the New York banker:
 Outside interest in the stock mar ket has shown further improvement this week Expectations Of a favor able result at next Tuesdays sale of s40,0OO,OO0 AZ per cent corporate stock and bonds of the city of New York have been largely responsible for this condition; while a more cheer ful feeling in regard to the money sit uation-time money at any rate seems to have modified recent fears of excessive stringency. It is quite true that Secretary Cortelyou's action in depositing public funds in the banks of the country before condi- tions became actively acute has had reassuring effect; but it is still more than probable that the money situa- tion will continue an important ad- verse influence in the market for a considerable time, extending at least over the turn of the year We are now on the threshold of the annual movement of funds to the agricultur- al sections to finance the crops, a fact emphasized by the firmer tenden- cy of call money. These call funds have been available for shipment for some little time. the banks refusing to commit them for fixed periods, well Knowing that the demand must come as soon as the crops were ready. Call money rates have been almost nomi- nal for some time under these circum- stances. but are now showing a finn CT tendency and the withdrawals for shipment to the interior may be, un- | der ordinary circumstances, depended upon to force interest rates up 10 at least the same basis as time money. The natural effect of such an advance will be to. cause liquidation, especially of securities that banks and other ] lenders do not favor as collateral. While call money is in the vicinity i of 3 per cent, lenders are not so dis 1 criminating in their scrutiny of col ! lateral as when rates reach 6 and above When the latter range be comes general there is usually a weed ing out by lenders of the poorer classes of securities. which causes in turn liquidation of these securities at a time they have a very limited market The situation. therefore, is one requiring caution in buying and offers distinct encouragement 10 con fine purchases to the higher grades of securities whose efficiency as col lateral is never questioned. Securi- ties of the lower grade if purchased at all at the present time should be purchased out right, as with more ac- tive money there is apt to be pressure to sell on market that will not take them froely.
 Banking institutions are fully alive to the money outlook and are entore.
 ng conservatism in channels where such action is necessary. This means a continued check in business of 8 highly speculative character, and to a measurable degree is a protection against an eventual widespread busi- ness embarrassment. On the other hand, the favorable agricultural out look is a decided influence against ex- treme depression, and the market for the immediate future is apt to be one of wide and active fuctuation within comparatively safe limits. Barring possible damage by early frosts co the corn crop, otherwise the record for the balance of the harvest of 1907 is now about assured. As already not ed in these advices. the prospects cer. tainly do not favor bumper crops in any direction. but in all cases they will be well above the average and will be worth in dollars and cents to the farmers fully what actual bumper crops in the past have proven to be worth"
 There is no sort of dif6eulty in