The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-09-23
ROseate Prospects ReSpOn-
Sible for Improved Tone,
MONEY SITUATION BETTER
New York Bonds show Increase,
which Helps Other Municipal Sc
world EnErOss Attention of Wall
Street-ReView of the Week.

prolonged considerably beyond the usual
season for such conditions and Justify
ing the hopes formed earlier in the year
that as favorable crop weather was late
in coming in the spring it would be late
in going in the fall joined with indica-
lions Of an easier working Of tie money
situation, at least as regarded borrowing
on stock exchange collateral, formed the
basis last week Of sustained improve
ment in the security market.
Really. as far as our crops are con-
cerned, the only matter Of uncertainty at
the present time seems TO be that regard
ing the probable size OF the cotton crop.
The wheat harvest Is made, and although
the farmers VIII naturally let their corn
stand in the fields as long as il contin-
ues 10 improve. "a frost in the corn belt.
even If ii should come tomorrow. would
probably diminish the size Of the crop bur
little
Improvement Depends on Crops.
The cotton plant continues its growth
until absolutely stopped by permanently
low temperature, but al the moment there
-ElaaA' ~ OF. 'H'i y hNNi4A -Dl halAih Alls5
that the COunuy's yield Of cotton this
year VIII be fully as great as It was last.
and a million and "a half bales greater
than was estimated three or four months
ago. In consequence thereof, the price
OF cotton fell last week over half a cent
bale.
u IS, thus. the happy outcome Of tho
agricultural lffs1sfttrr lies At
the bottom of the marked change Ga daan-
cial sentiment that has taken place dur
ing the last month. Our farmers are 10
receive this year E.upa5,yy for their
crops. a larger sum Of money than was
ever similarly paid 20 them before, and
OF the immense quantity Of wealth thus
created considerable quantity viii as
sumo the form Of gold imported from Eu-
rope or credits established there. because.
owing % the shortage IN the foreign har~
vests, the needs Of Europe for grain and
toodstuds this year are exceptionally
large.
strong Showing of Bank Statement.
Strong impression was made in the
financial district last week by the figures
Of the return Just made by the national
banks OF the country 20 the Comptroller
OF the Currency. showing that ia the
year ended ou August - the cash hold
.Egs OF the national banks had increased
ST.D.0Gl. while the loans Of the banks
had enlarged Sj79. COO N-auI this despite
Che liquidation ia Wall street. which has
involved. as Is estimated, "a shriukage .u
the market valuation Of stocks ard bonds
of }s.rt3 -l 600. The only possible eNUia-
nation OF this is that the countrg's gen
grl business has absorbed the money that
Wall street has reluctantly laid down and
that an expenditure of money on a grand
scale IS still current iu the country al
large
Our exports for the month were st.U
enormous. but were $4,000 less than
they were iu August. 1895 Our imports.
however, were more than $2au09,e1 great
aT than they were ia the same month last
year. so that FOR the entire month the
cGuutry's excess Of exports over imports
or trade balance was only i.NI01, the
smallest Of any month lu ten years. An
uEdsn.ab3e inference from an this is that
general business must make the same sac
ri6ces that Wall street has If there is TO
Dee n return in the country 20 normal
monetary conditions.
Bond Market in Better shape.
The money situation. however, So far as
Wall street IS concerned. has unquesuon-
ably improved. Steadily throughout the
week the price Of the New York City ~
per cent bonds rose on the stock exchange.
touching on Saturday a level 6 points
above the average price at which they
We're awarded to the bidders at the city
comptrouers sale. The other city bonds
followed the advance, and the rising
movement began 90 affect the high grade
railway investment securities.
The activity In the bond market. aside
from the city of New York issues. was
not great but. such as ii was. was a
straw pointing in the right direction.
While there was no change to speak of
in time money rates during the week.
confidence became frmev in banking par
Tors that the backbone Of the years
money troubles had been b-oken-that is
90 say. if the same moderation and self
restraint in speculative circles were to be
practiccd as has been in the last thirty
days
Condition I'm Copper Market.
There was again a great deal of talk
last week regarding the copper market.
the shutting down Of the mines. the plight
of various metal-selling agencies. and the
supposed analogy Of affairs in the copper
trade 20 those in the iron and steel in
dustry.
IL is pretty generally understood now
that as 1t is costing several large pro-
ducers of copper IN the nCighborhoOd of
10 cents a pound TO bring their commodity
to market, on account OF the Enthusiastically
hfar of Tuf 81 ..T.
tanning fuel. and many similar difficulties,
a cUrtailment Of production would have
become necessary even before the selling
price of copper began 20 hover around j.
cents a pound; and it may he said that in
conservative quarters in the copper-pro-
ducinE business that the troubles I'm which
various metaI-selling organizations have
found themselves are not at all regarded
with dismay.
The customs and practices Of these or
CARNATIONS, or many of them which have
grown up in recent years. have wrought
only disorder and trouble in the copper
trade. At present the feeling appears to
be that the reduction of production that
has been ordered will prevent any further
declines to speak Of in the price Of the
commodity, and that as soon as some Of
the great copper consumers find that no
large forced sales Of copper are likely on
the part of individuals or companies I'M
der financial stress, Il IS not improbable
that they VIII make purchases heavily
since nothing is better established than
the enlarged necessities of the use of
copper, and the fact that. relatively
speaking. the production Of copper in the
world Is growing less.