New-York tribune., 1908-01-05

cbanpe activity They merely begin TO agree
that the patient is better-probably out OF dan
ger-not that recent fevers and weakness can
forthwith hurry into plunging exercises What
may be regarded, though, as happily slgnlhcahr
is that In the banking world there ceases to be
APPREHENSION of further convuIsions- So far a.
money market conditions are involved. panicky
elements disappear-so much is almost UNIFORM
ly agreed And this is inspirting 70 those students
of the security market who have theorlzed thac
more largely than any other feature money mar
ket disturbance was responsible for the pad
things darkening the close Of 1907
Premiums on currency have virtually disap-
peared. Gold abroad is actually being pressed
in volume upon American bankers whose ext
gencies only little while ago were scare topics
at every European financial centre How sub
stantiaI and how sure is the bettered condition
is attested by this weeks reduction OF the dis
count rate by the Bank of England-now' as
ever. the alertest financial barometer OF the
world
Yesterdays bank statement had encouraging
features-shown particularly in reduc1i0n III
loans Some of the statements Improvement -
attributed to a somewhat changed ATTITUDE ON
the mart of Western correspondents Of New York
hanks who recently assumed to be rather curl
ously exacting 1t is possible-even probable
succeeded by applications to reloan here mucn
r,o,av arbitrarily demanded during November
and December. Not small proportion OF 'he
item of loan reduction may be taken to repre-
sant the cancellation of New York obligations TO
the West
In the view of an important banker whose
relations provide exceptional opportunity Ior
con,prehensve survey. IT is probable that during
the first half of this year we VIII nave Idi1s
money rates prevailing. without such overpiuS
81 f,nas as will knock interest rates to any
such low level as fashionable optimism IS Just
now predicting for there are indications tha'
,o1,ars will have to meet a genuine demand for
accommodation from important borrowing quar-
tors where there will be good stuff to o1er ZOE
securitv New York building trade interests
not able recently to command any n1easuraOie
consideration-will be likely TO come 1or"alu
with pressing applications to finance lasI year
oon,noi+n,ents to warrant the undertaking OF
new enterprises. And some OF the most iri-
portant railway systems OF the country are
awaiting opportunity to obtain advances or mag
nitude Thus it may be well on toward the hrSC
Of June perhaps before Wall Street is treated
to any such plethora of money as now is popu-
larly promised by the majority OF Stock Ex-
change prophets. Succnctly. whatever may be
snasms in the lowering Of call money rates, we
ore bv no means confronted with early aonorr1aI
interest cheapness
And one elemental influence IN this has 10 do
with the situation in the business worid-iar
better than is generally estimated we are sun
crowded continually with predictions OF trade
reaction-and indeed, one Of the most advanced
arguments" favoring declines in interest rates
Is based UPON the forecast of manufactures at a
standstiII and labor unemployed Against sucn
annrebensfon-upsetting such scarecrows-are
irrefragfble facts crowding every day INTO the
news dispatches particularly as to New Eng
land) announcing the actual resumption OF N
dustria1 activity.
In the commercial world. rather than IN the
Industrial some uncomfortable incidents may
intrude-though it is agreeable to believe that
disclosures will be much less sensational than
have been predicted. Two conspicuous names
arc discusseG-one in a large way handing
staples one importer of luxuries- AS q
whole the eastern mercantile world seems IN
sound intrinsic condition; and, though money
market restrictions have been embarrassing and
Gripping the extent of such handicap has been
less than Wall street at times has Historically
calculated At interior points distant from New
York ruling conditions have been more favor
able than here; and trade authorities con-
versant with the situation are inclined to agree
that there is be expected unusual out of
town embarraSsments In New York itself Wall
Street sensationalism has troubled and damaged
in many Instances local credit not in any way
directly related to any Wall Street interest.
A factor Of strength in the situation has to do
with the exceptionally large holdings of cash by
individuals. Stock Exchange brokers and private
banking houses. The volume of funds held
runs far beyond any precedent. BY way of ex-
ample one veteran Stock Exchange firm at 25
Broad street received authorization this week
from single customer TO make loans on coll
lateral passing an aggregate OF six millions.
Coincidently. never have borrowing brokers
been strongly buIwarked as at present-25
and 80 per cent margins being not unusual at
their banks.
That standard stocks are scarce in Wall Street
IS in many ways manifest. That the short in
terest is much extended is similarly clear
Risky speculative commitments have shifted in
very large volume to the bear side: and how
much discomfort there can be in this condition
was rather graphically suggested in a Sugar
Trust performance q couple of days ago-quoia-
tions leaping 10 points or SO without a single
development other than that one crowd of shorts
became suspicious and tried to flank some OF
their own good pessimiStic brethren
In standardization of the Stock ExchsnSs
status and prospect there is logic and aptness in
these advices issued yesterday by the Stock Ex-
change house of A A. Housman & Company.
Certaia actual facts should not be overlooked FOR
one thing the farms OF the United have added
this year SI0oottoOOO wealth C,r sgLt