The Washington herald., 1907-11-18
Condition in New York Shows
Great Improvement.
ENOUGH GOLD COMING OVER
Europe Proves Beneficial Factor In
Present Dfsturbance-Grou for
Optimism Found in General Con-
diticns and in Fact that All
Classes Have Money.

'"~ A4itSI4V4 ol tilt country Local at l.
tention was entirely fixed on the hoard /
ing OF money the continued premium on ]
currency and the disorder of the domestic
1changes-matters, however. that un-
doubtedly stood in a better light al the
end Of the week than they did at the be-
ginning
The security market had TO withstand
the LIQUIDATION OF a considerable quantity
OF stock that was pressed for sale for the
account Of Pittsburg and. one or two
other Western cities where the money
strineency or the difficulty OF obtaining
cash sums OF money had become acute.
as well also as the selling Of large
quantity OF United States steel bonds by
the members OF the defunct Tennessee /
Coal and Iron pool, and the market was /
compelled to conduct this ABSORPTION /
without the help OF buyers from out OF /
town. for these buyers, unless they had /
personal balances here TO their credit in 1
a New York bank were practically unable I
to make purchases Of stocks
More Currency Is offered.
Taking a comprehensive survey Of |
things. it seems certain that the narrow |
pass Of business and finance is on the /
point Of widening Our bank and do /
mestc exchange troubles look as II they |
were nearly over. The premium on cur /
rency is decidedly slackening because /
there Is a lessening demand for cash and |
because offerings II currency arc con /
stantly Increasing. ard any one can see
at glance how inevitable these develop
ments must have been In the first place. !
old boards Of money accumulated IN the
past By poorer class OF people long
before existing emergencies made their
appearance have been rushed to the
Offices OF money buyers. over S65. 10000 In
gold has been bought by our bankers
abroad and half OF il landed here.
The bank-nOte circulation Of the coun-
try has increased IN a couple OF weeks
$4,000. 1000. and the basis OF this circula-
ton Will probably soon be enlarged so
0oo,0oo or $60,00C0o0 by an issue Of Pana-
ma Canal bonds that the banks have
agreed 10 take upon the understanding
that the money paid for the bonds should
De left on deposit by the government with
national bank repositories.
A restoration Of public confidence can
not fail 20 be produced by the spectacle I
expanding bank reserves IN practically
every section OF the country. Il is not
100 much 10 expect. all things considered.
that after January ! al the latest money
VIII become more abundant IN the Uni
ted States than IL has been for years
previously. Although financiers in Eng
land were disappointed toward the end
Of the week by the refusal Of the Bank
Of France 10 release a large amount nf
money for the brnefit Of this country. Is
the bank at one time was about 10 do.
yet financial sentiment on the whole in
Europe during the period underwent en-
couragemeut
Willing tn Send Money.
The willingness as expressed by the
Bank Of France 10 send money here II
the transaction could take place under
some show OF color Of the authority OF
our own government attested that the
French bank was in d position 10 part
with money II i; wished 10 do So while
the return OF the Bank OF England on
Thursday was exceedingly favorable.
showing a large increase in the bank
surplus reserve. despite the great with
drawals OF money from the bank by the
agents or American gold-importlng
houses
AS far as home matters are concerned.
there is no denying the fact that we must
face Il contraction OF business that is
proceeding in "A pretty rapid way This
phenomenon has not. OF course. taken an
intelligent man by surprise. and in the
general state Of preparedness for II lies a
sound assurance that its results VIII not
be disastrous. 1t is more or less un-
pleasant unwelcome medicine for thei
country % take; Yet the medicine is be-
ing taken heroically, because people seem
70 fully understand that ii is the one
remedy that viii surely cure their present
ills.
There are present iIst now. moreover,
two great grounds of general optimism.
One is that. owing TO causes with which
everybody is familiar, most Of these hav-
ing relation TO the great increase in the
population Of the country and the sub
stantial wealth or the West there is not
now and has not been in recent years the
harmful element at work OF economic
overproduction- In not 2 single instance
that can be named are our railroads suf-
fering from an overbulding of lines into
virgin territory where an insufficient
amount of new business offers. and the
greatest trial that the railroads have en-
cOuntered in recent years has been their
inability 10 provide facilities enough for
the amount OF business that has been al
ready called into being.
Purchasing Power Il Great.
Manufacturing plants everywhere have
had more orders than they could fill. and
unsold stocks OF goods now on the shelves
Of retail stores or in the storerooms OF
factories are exceedingly small. The pur-
chasing power Of the country is as great
as at any previous ;ime, but the means
Of purchasing have been curtaiIed, par
TALLY through the existence Of an anti
/ quated currency system. partially through
popular fright and hysteria. and partially
| through the inability Of large number
| of the people of the country to perceive
that the injury Of one great business in
! terest is the concern Of all the others, and
that there cannot be set on foot here a
I prescription OF railway corporations. a
movement To reduce the earning power of
these companies while their cost OF liv-
/ ing" has increased in the same or even a
| larger degree as that OF other companies
or individuals, without affecting in the
most direct and harmful way the general
| business prosperity Of the land
| In the second place. as has already been
stated. there is every prospect that our
period of financial and business halting
this time will be short The people OF
the country from the highest 10 the low
est have more money in their pockets
than ever before on n similar occasion.
and many dangers and obstacles TO recov-
cry that were present on similar occasions
before are now wholly absent. The great
I business corporations OF the country are
q rrifincf.lr,a