The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-06-17
MONEY NEEDED
FOR BUSINESS
FinanCiers Looking Carefully
Into the Future and Staying
Out of Stock Market.
REQUIREMENTS ARE HEAVY
POSITION OF THE BANKS NOT
FIRST GLASS.

New York. June 1.-THE financial mar
kets have begun to canvass the obliga-
lions which must be met in the coming
half-yearly settlements and to take ac-
count of the resources which will be
available. The ahstention from any ac-
tive participation in the stock market
winch has been increasingly manifest,
IS prompted TO a large extent by eau
lion, OWNS to the money outlook The
requirements TO be met this year are I'M
usually heavy, and the banking posi-
tlon IS below the average for the sea-
SON The dividend and the interest dis
bursements on July 1 will be very large,
as the halt in business activity has not
yet involved reduction IN the rate of dis
bursement on securities. The position is
complicated to some extent by the de-
clslon OF the New York City authorities
10 sell S29.OJ0,Cc0 of bonds during the pres
ent month. There Will be due also on
July l an instdIment o. sUi rscriptions for
neW Northern Pacific stock which will
call for over $i1,000,0O0. The good con-
dition of the New York clearing house
banks, on which the principal burden of
the settlements will fall, has been de-
Ginning rather than improving, the sur
Plus reserve of those institutions now
standing at $4,jlf625, compared with 81
1850 in this week a year ago.
National Bank Reports.
The compilation OF the reports OF ma
tion2l banks throughout the country for
May 20 was made up at Washington last
week and revealed the extended credit po-
sitiOn the country over. Compared with
the preceding statement on March %
loans had expanded some S95, 299. $50. while
the comparison with June IS of last year
showed a growth in the loan item reach
ing the fOrcible total of S42l. %, 613. For
the eleven months period the national
banks had added bat S40,35S.5l4 to their
cash holdings, and of this amount S35,
S1.5S1 had been secured in the sixty days
preceding the GfaTanpntS 4 n
of the changes for siXty-day items
of the New York bank statements
shows that the clearing house banks in
that time had expanded loans. S14. $40 100, |
and cash holdings, So, 10, 600, accounting
for a large portion of the changes made
by the national banks as a whole. The
inference 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 recalled The deduction to be |
drawn is of restricted facilities available /
for meeting the July l requirements The |
decision of the secretary of the treasury
to recall S30O00,000 of government deposits /
on July l will defer that operation until |
maturing of the 4 per cent bonds on June l
Is, which the treasury department esti- |
mates VIII amount To S56,00000O.
Gold Going Abroad.
This leaves margin of possible bene- /
fit to the money market of $6,0 coo when \
the operation is concluded but the de- !
lay in final presentation of government |
bonds for redemption is expected to post ,
pone the full effect of the bond redemp- |
tions on the m0-ey market Efforts at /
regeneration IN foreign money markets, /
especially in Paris, have placed bur
den on the New York money market by |
gold Withdrawals and have helped to de 1
piete the resources of the New York /
banks.
The gold export movement was inter
rg1T cd las h1a -fpTr7
ness of foreign exchange led to its re-
sumption at the end of the week. The
Paris market made payment of 81
eG0,000 during the week for a shipment of
10 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
the work of recuperation may be extend
ed before the first of July
Could Not Secure Funds.
The receivership for an important steel
construction company in New York dur
ing the week was an unpleasant Incl !
dent. not 50 much for the immediate con- |
sequences involved as for the differences
To be drawn bearing on general con- |
dtions. With large and profitable con
tracts on hand this company was help
less TO secure funds to continue its or
erations A special cause Of the EN-
barraSsment was the diversion of n large
sum of its working capital for the com
pletlOn of a new plant. which forced it
into the money market to secure tenn
pOTary loans. But even in this special
feature of the case there was believed to
he reflected a factor which is typical of
widespread conditions The lavish out
lay Of capital for extension to take ad-
vantage of the prosperity of the country
is a prime factor in the present short
age of capital The possibility of en-
barrassment for lack of sufficient work
ing capital to conduct operations lends
itself to suppOsition. Rumors of sucb
troubles found ready and unpleasant
when applied to enterprises
which were known to have made large
OUTLAWS for extension. The specific for
mutation Of these rumors. however led
10 their authoritative refutation
There was a material growth of conf
dence during the week in the prominent |
crops The publication Of the govern