New-York tribune., 1907-01-01
TIE II EQUITABLE
TRUST COMPANY
OF NEW YORK
Fifteen Nassau otreet
Capital. S 5000. 900
Interest allowed on daily balances,
subject to check.

nc low interest rate has sgan made tsef felt new
BUT 9egg news 9na nehr eSor has eBeeTs Peen at work in
recent years to mitigate the usual penalty Ios
Of being forced to discharge obiiga tions and to
aV ha 9 seeor CREDITS 6 m Sn q kind dof hc
nearly ten dollars OF credit for each one OF ,on ns%
to the lawful money reserve and by stretching the
reserve little further. the banks have been ape ape
an ne 6f sein In esPGaS espa ems
an increase in loans and Investments of sSssi s55
since September 10. 1902.
REACTION WAS sIDETRACKED.
1t must be recognized that after the depression
which followed the financial panic Of 1893 and lasted
about four years. a reaction was due which would
naturally carry prices high they were in the
Of the he R
But may 1T not be fairly reasoned that this reac;
development felt in 19o2-o4? Was it not to be
expected that thereafter industry and trade would
fall back to the usual volume and ordinary growth
measured by previous records. and that prices
characterized them since 1870?
But events did not take this course. On the con,
the volume OF business was never so great in this
cHdn c @ aH # is m @ 's by n
nous demand for labor and materials to carry . out
new projects wages and commodity prices sun
tend upward and more than million inn Immigrants a an Is
without apparent effect upon It. The steadily IN
@ Sdeg TpP ha i15 % '5 Other
efla eaase sustained Ae'''''y 0e''e' ~ any
Although there is. of course, element of specu-
aton in present prices and in the existing pressure
for money it must be said that the absorption OF
money in recent years and the present demand are
struction than in any previous period OF expansion
The productive capacity of the country is being
enormously increased by the investments that are
under
The stock of money in the country and outside
OF tho government Treasury increased by the very
large of S20693e 7l6 from December J. 1895. 10
December ]. 1906. and OF this only H4.96,S04 was
gained by the national banks. The remainder,
above what gained by state banks and trust
companies is held in circulation. The stock OF
money outside Of the government Treasury. ana
June go 1896 to 80 2E a79Ss This money is used in
the employment Of pc Dpe. in the payment
OF higher wages and n the transaction OF a greater
business at higher level OF prices
RUSSIA DANGER SPOT
Credit is evidently expanded the limit and that
situation always involves risk from any disturbance
which might export OF gold. and thus
force n rapid contraction OF the superstructurc OF
credit. A reduction OF exports through crop
failures would throw our exchanges out Of balance
but have had serious crop failure for so
wide that little fear OF calamitous short
age IS felt The greatest possibility FOR mischief
has existed for the last In the unsettled state
OF Russia. All Europe IS involved in Russian
withdrawal OF accommodations In the
United States, sale OF our securities and move
ment OF gold from New York to Europe We have
plenty OF gold TO spare II we had currency
tenn under which paper could be issued 20 ease the
pressure. II Is noteworthy in this particular that
the Imperial Bank OF Germany holds about
yet si25oo 600 OF in circulation II is
charging per cent interest. but money is obtain
able Mt the price.
II the money market Of the United states could
inflow of gold and the rapid increase OF wealth
would soon put II In easy condition.