The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-04-20
TOO MUCH MONEY.
New York Banks Have So Much
They Don't Know What to Do.

New York, April 20.-Growing ease
and plethora of funds in the New
York money market is the marked
feature of the financial situation
With the mid-monthly disbursement
OF dividends a IN per cent interest
rate was round necessary to effect the
placing of funds on call and 80 day
loans fell below per cent The be-
ginning of exports of gold was the
natural consequence of this condition
and a call from the, United States
treasury for the return of an INSTALL
ment of government. deposits is not
expected to have any material effect
In stinentng money rates. That the
plethoric condition of the money mar
ket Is due to an important extent to
the violent measures for relief taken
In the throes of the panic last fall is
true. but shrinkage in trade activity
Is indicated also to an extent which
deprives the ease of money of much
OF its favorable effect. Until last
weeks engagements of gold for ex-
port, there had been no return of any
part of the $100.000,000 of the metal
which was imported during the I'm
ancial crisis last fall. The retention
of this great fund OF reserve money
was facilitated by the enormous nier-'
chandise exports which went forward
liquidation to meet cash require
ments. In March. for the first time
since October, the value of exports
fell below those for the corresponding
period of last year. Although the
shrfnkage in value of imports has
been much more violent, it is expect
ed the outward movement of gold will
attain considerable dimensions The
movement Is likely to be diverted in
part to Germany, the Imperial bank
making an allowance of interest on
shipments while IN transit in order
70 70 oil 10 70 he
| ments to Paris represent a diversion
Of the demand of that center upon
London which has been improving
for week, with the effect of raising
the interest rate in London to a con-
siderable extent. '1iS-
! the domestic interior continues in I'M
| abated volume and the surplus of the
| New York bank reserves is assuming
an unwieldy volume.
| Money market conditions therefore
seem to be reaching the condition
promising success for new offerings of
securities. The known necessities of
| the railroad corporations promise large
1 issues Of new securities as soon as
conditions become pre- pttfois. The I'm
| ion Pacific. the Illinois Central. the
| Delaware & Hudson. the New York
Central, the InterboFough Metropolitan
| and some minor companies have an
| nounced their plans already. Tenders
! for these issues win be. awaited with
| great interest to indicate the course OF
| the investment situation. A factor
| having some bearing on this situation
i is the borrowing by some of the rail-
/ roads privately, as reported last week,
! on temporary notes on which the In
/ terest rate is said to he considerably
above the prevailing market rate.
| Aside from the needs OF the corpora
tons the demand. for loans is slight,
| and the ease of the money market is
due to this inequality with the abun-
| dance Of supplies. The course Of earn
| ings Of railroads has not turned for
the better yet in sufficient degree to
help their credit, in spite Of the prog
| ress made in cutting down expenses to
i meet the inroads on gross earnings.
1 The latest report OF the committee
on car efficiency of the American
| Railway association showed that or
| April 1, the number of idle freight cars
had increased since the previous report
on March IS by 9,465, after having beer
diminishing successfully each two
| disappointing showing was considered
| corroborative Of reports for some time
past of a renewed contraction in trade
activity.
This contract is of especial effect
occurring in the metal trades. A fresh
decline in orders for steel products, in.
| stability in the iron market, and con.
tinuous decline in prices of copper
| make a burden for hopeful sentiment
to contend with. Recurring reports o.
an intended cut in prices of steel pro-
duets have an unsettling effect in thu
trade in spite of expressed determina
ton of the allied interests controlling
the largest portion of the output t.
maintain prices.