Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-24
WALL STREET
STILL SHORT
Of CASH
C0RTELY0U'S COURSE
BRINGS LITTLE RELIEF
No Prospect of Permanent Re-
lief Before First Of Year,
Says Henry CIewS in Review
of Money Situation,

Odyo l'0llIy OlOWo lll hCVlOW
of Money Situation,
Especial correspondence Morning Journal
New York, Sept. 21.-The week has
seen no change of moment in stock
exchange circles. AS was to be eX-
pected. the market from day TO day
has this week proved a favorable one
for traders, fluctuations covering a
fairly wide range as the result of day
to day happenings. But fundamental
conditions remain unchanged partic-
ularly as regards the money situation.
Secretary Cortelyou, 1t is true. has by
his timel yuse of public funds, re-
moved the fear of extreme stringency,
he has not, however, and probably
will not be. to more than temper the
strain caused by the permanent lock-
ing up of capital resulting from the
tremendous business and industrial
energy that has marked the last few
years of unreasoning optimism and
unregulated expansion. Money is ua-
questionably scare, with the pros
poets of continuing so at least over
the turn of the year. The situation is
well illustrated by the difficulty that
virtually all large mercantile estab-
| lishments are experiencing in dis
counting their paper, very close to Z
per cent being the minimum require-
ment from the largest and strongest
houses, with corresponding figures.
Amounting in, Instances to practical
prohibition, for houses under ordinary
conditions considered strong. but not
strong enough to receive accommoda-
ton when money can readily be
placed on safer basis at equivalent
rates. This is a feature fraught with
danger. The commercial paper strain
Is one of gradual developments Money
has for 50 long been active at New
| York, the financial center, that the
necessities of many of our larger mer-
camille houses were about sixty to
ninety days ago financed by out-of-
town, and especially by western, in
istitutions. 1t was quite natural these
institutions should only discount ma
iturities that would allow the immedl-
Late e1empoyment Qf their funds
17Ghen the crop finafieing period ar
IrAed, and as that period is now at
hand, the mercantile borrowers are
being compelled to take up their pa
per and are experiencing unusual diff
fculty in replacing it. They are COM
PEELED to apply TO New York institu-
tons for that purpose, and lenders
here have much more than they can
handle without taking up the addi-
tional burden We are experiencing
a national-an international--scar
of liquid capital, and must be content
TO enter period of rest and recuper-
alton after the long eXhausting unbri-
died financial Industrial and mercan-
tile enthusiasm and hysteria through
which we have passed. Wall street,
the nerve center Of the country, was
first to realize the necessity of con-
traction-its functions gave the neces-
sary foresight-and it Is but natural
that there should be a corresponding
lread1ustment of industrial and mer-
camille energy-a readjustment that
from a broad standpoint Is at once
natural and necessary and one that
will prove beneficial
The annual statement of the COM
ptroller of the currency on the condi-
tion of all national banks of the
country under the call Of September
Is an exceptionally important one
comparisons are available with the
| figures Of May 20 OF this year and
September of last year. In the case
Iof the former the loans and discounts
show the large expansion of forty
seven million dollars. while the cor
responding figures for last year show
the rather startling expansion of 379
millions. AS partial offset, there has
been an Increase of sixty-eight mil
lions i'm specie and nine millions I'm le-
gal tenders. while deposits have in
creased 119 millions. An appreciable
part of this expansion undoubtedly
represents the transfer of loans to
this country from abroad; but II new
ertheless also reflects a strain upon
ha fnI eta
money centers are not In a position to
relieve in the form of abstract loans
On the other hand, we may unques-
tionabiy rely upon the beneficial ef-
fects of large exports Of our agricul-
tural products, of which we have a
sufficiently adequate supply to export
at the favorable prices conditions
abroad will compel buyers there to
pay. IL Is quite evident that there
Is ample room to adjust prices to fa-
vorable export basis II II should prove
I the present range Is too high: cotton.
for Instance, is about 2hc per pound
higher than year ago, wheat is 25c
per bushel In round figures. corn 15c
and oats 25c. Imports are continuing
at new record breaking rate the du-
table entries for the month of Au-
gust. for instance at New York being
valued at S33.694. 900, as against $S0.-
$4,000 the preceding August and the
duties collected on direct imports for
the month were s14,31l,000, compar-
ing with S13.6S1,0 These duties
are now available under the Aldrich
amendment for deposits In the ma
tlonal banks. instead. as has been
heretofore the case. of being trans
ferred TO the treasury. where they
could only resume circulation by
means OF the regular congressional
appropriations.
The decision Of the Amalgamated
Copper company to curtail production
so per cent as a first step, and what
ever additional amount may be needed
to readjust the production to the mar
ket requirements Is move In the
right direction: Il may be regarded az
the forerunner Of similar movements
In other quarters. The Smelling trust
Is recommending to independent lead
producers general reduction Of so
{ per cent In the output under threat Of
! flooding the market with supplies If
, the recommendation Is ignored. The
chairman of the United States steel
corporation board IN published
! statement shows that the decreased
demand d fully recognized In iron and
steel circles. and sthtes frankly that
the new orders for the latter half OF
1897 are 25 per cent below those Of