The morning journal-courier., 1908-04-20
FINANCIAL REVIEW
Growing Ease and Plethora of Funds Weeks Main
 Feature.
GOLD EXPORTS EXPECTED
shrnIngc In Trade Activity Renders Money Situation of Slight
 Benefit

Pl"NlilS oHHN Hllu plptnulh or iunuA in tho New York market was the feature of the financial sItu- alton last wtek, With the mldmonth ly disbursements of dividends a l-i per cent interest rate was found nec- essary to effect the placing of funds on call and a0-day loans fcll below S per cent The beginning of exports Of gold was the natural consequence of this condition and call from the United States treasury for the return ot an installment of government de- poslts ls not expected to have any material effect in stIrfonlngg money rates, That this plcthorlc condition Is due to an Important extent to the ylo- lent measures for relief taken in the throes of the panic last fall Is true, but shrlnkage in trade activity Is also Indicated, to an extent which deprlycs the ease in money of much of its favorable effect Until last weeks engagemontsNof gold for export. there had been no return of any part of the SlOO 000,O0O of the metal which was imported during tho financial crlsls last fell The retention of this great fund of reserve money was faclitat- cd by the enormous merchandise cN- ports which went forward months af- ter month in the process of liquidation to meet cash requirements In March, for the first time since october, the value af exports fell below those for the corresponding period of last year. Although the shrinkagc in value of imports has bcen much more violent II is expected that the outward move ment of gold will attain considerable dimensions. The movement is likely to hC diverted, In part, Co Germany, the Imperial bank making an allow ance of interest on shipments while in transit in order to facilitate the movement. The shipment to Paris represents a diversion of the demand of that center upon London, which has been in progress for week or more, with the effect of raising the m tercst rate in London to n consldcra- ble extent. Tho flow of funds to New York from the domestic interior. meanwhile, continues in ahated vol- ume and the surplus of tho New York bank reserve is assuming an unwieldy volume.
 Money conditions, therefore, seem to be reaching the condition proms- ing success for new offerings of see curtieg The known necessities of the railroad corporations promise largo issues of new securities as soon as conditions become propitious The Union Pacific, the Illinois Central, the ! Delaware and Hudson, tho New York 1 Central, the lnterborough- Metropoli 1 tan and some minor companies have lannounced their plans already. Tend CTS for these issues will be awaited i with great interest to indicate the 1 course of the investment situation | Aside from the needs of the corpora i tons, the demand for loans Is slight l and the ease of the money market due Is to this in equal part with the abundance of supplies Tho course
 of railroad earnings has not turned l for the better yet in sufficient dcgret to help their credit despite the pro l gross made in cutting down expenses
 to meet the inroads on gross earn.
 inps
 Contraction in trade activity Is o
 especial effect in the metal trades. 4 fresh decline in orders for steel prod
 ucts. instability in the iron market anC
 continuous decline in price of coppcl
 make a burden for hopeful sentimen
 to contend with.
 Recurring reports of an intended
 cut in prices of steel products haV'
 an unscttlmg effect in the trade not
 withstanding the expressed dctcrmin
 alton of the allied interests controllni
 the largest portion of the output {,
 maintain prices. Crop prospects al,
 of growing influence on speculative
 sentiment. Dealings in securities
 however, were unimportant owing t
 the short week, caused by the clos
 ing of the stock exchange on Fri
 day and Saturday