The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-03-02
COUNTRY BANKS
HOLD ON TO CASH
Not Redepositing in Reserve
Cities to Full Extent
Allowed.
INTEREST RATES HARDEN
EXPECTED PLETHORiC MONEY
CONDITIONS NOT OBSERVABLE.

New York, March Securities mar
kets last week were inert and were ad-
justing themselves to an attitude of
waiting for the development of events
to shape the future course of affairs.
This was true not only in New York,
but in the great financial centers
abroad. At ali these points there was
discernible the tendency toward accu-
mutation of reserves in banking cen
tiers and in all cases the reason given
for the accumulation was a Shrinkage
in trade and Industrial activity, leaving
a lessened demand for money for ac-
tive use in enterprises. In the United
States the effects of the accumulation
of reserves are offset by a number of
causes. The United States treasury,
partly induced by the current deficit in
the revenues, has commenced to with
draw from the national banks the de-
pOsits which were placed with them as
an emergency measure during the finah-
cial crisis The national bank notes
which were issued in extraordinary vol
umes at the same time are going into
rapid retirement by deposit of lawful
money with the treasury by the issu-
ing banks.
Interior Banks Hold to Cash.
These symptoms of a contraction in
the needs of the circulation are accom-
panied by signs that interior banks are
disposed to keep up their reserves to a
nigh level and to refrain from redeposit
i'm the central reserve banks to the ex-
tent allowed by the national bank law
The additional requirements of the New
York trust companies i'm preparing for
the weekly statements of condition were
another factor in taking up the slack in
the return flow OF money to the reserve
centers. The consequence is that the
plethoric money conditions which were
expected to follow the subsistence of the
panic have been slow to develop. In
terest rates on time loans in New York
have shown hardening tendency dur
ing the week.
Money Lenders Discriminating.
sAnother element in this course of the
money market was the discrimination
exercised against collateral offered for
loans. Some of the Industrial stocks
and railroad securities of companies
which have suffered from diminished
earnings are looked at askance by mon
ey lenders and add to the difficulties of
borrowers. The shrinkage of profits
and the diminution of earnings applica-
bic to payment not only of dividends.
but of fixed charges, has been a con-
spicuous influence on special securities
in the open market. Corresponding i'm
portance is given 20 the plans for cur
tailment of expenses to meet the de-
cline in earnings. The question of wage
reductions was given special prom
inence.
Steel Business Better.
on the industrial side a good impress
sion was made by the placing of orders
for steel rails by the railroad compa-
mics and by the report that the rolling
activity of the United States Steel cor
pOratiOn had risen from the % per cent
capacity touched i'm the depths of the
depression 10 81 per cent of capacity
The copper market showed Improvement.
Railroad earnings showed no pro-
nounced betterment and operations in
general trade were reported to be on
conservative lines. The sluggish in
vestment demand for bonds was con-
spicuoas and offered little encourage
ment for early success in the placing of
new capital issues, which are relied
upon TO furnish resources for important
projects of extension under way.