The sun., 1908-06-28
IrINANcIAL AND coMaGERCrAL.
SATURDAY. June s7.

~ SATURDAY. Juno a.
The weekly statement OF the members Of
the Clearing House as calculated upon the
average basis and published in the Gus
tonary manner after the close OF business
to-day bore witness in a striking way to
matter that has speedily become one OF
first importance in the general financial
situation. viz. the accumulation OF money
in places Of deposit not only here but in
every quarter OF the civilized world. The
amount OF cash gained by our local banks
during the week increased over s7.00o.oo0.
and. as the loans in the week decreased by
81, 100 900 the surplus Of the associated in
stitutions was augmented by $7.ss8. 900 and
rpss to q total of 500 100000. an almost un-
,precedented figure for this date. 1t should
be borne in mind. too. in estimating the
meaning OF these figures that in the last
1--WE weeks the deposits Of public funds with
the LOCAL banks have been cut down by
almost one half. and that the trust compan-
iss have been Withdrawing money from the
banks to meet the requirements OF the new
reserve law. The banks have. in other
words, gained through natural sources
money In volume sufficient to counter
balance the drains made by the Govern
ment and by the trust companies and to
bring their reserves once more up to record
breaking sums. The reserves Of the Bank
OF England, the Bank of France and the
Bank Of Germany now stand at record high
figures In many ways, and some OF these
break all records Of every description.
Day by day and week by week. too. these
vast totals are enlarged by the receipts OF
gold from the mines in quantities that are
also record breaking. The Bank Of Ger
many has been the last of the great foreign
financial institutions to fall in line owing to
the well known faot that business affairs in
Germany were until recently suffering from
overexpansion, making the country the
most eager bidder for money in the worlds
markets; but the reports Of the Reichsbank
now show proportion of reserve to liabili-
ties larger than ever witnessed before at
this season, and while it is probable that
Germany is still desrous OF adding to it's
supplies OF cash. the plain tendency OF
money rates there is to fall 1t is clear that
IN England reduction Of the Bank Of Eng
land's discount rate to the, nominal figure
Of per cent. cannot be delayed a great
while longer. while in France the ghrt OF
money Ia moro pronounced than anywhere
else. 1t would certainly seem as II the
probable outcome OF this extraordinary
state Of affairs must before long engross
the attention Of the international financial
community. To-day's showing Of the posi-
tion at this centre was In no way a market
factor, for tho nature Of the exhibit was
very generally anticipated. The stock
market held along the same drifting and
professional lines that 1t has during the
past fortnight. and especially In the current
week; and inasmuch as during the last four
days the trend of prices has been continu-
ously upward, enough profits had accumu-
lated on ventures for the rise to invite
speculative realization. At first the market
YVES higher. but 1t fell during the second
and final hour Of business because Of almost
general selling by the trading element.
Closing prices. however. showed gains and
losses about equally commingled. There
were no developments Of financial nature
which these spectators deemed worthy OF
regard in any degree, nor indeed were there
any occurrences of this sort at all. Wheat
prices to-day were easier to begin with
under very favorable Western weather re-
ports, but at the close were little higher.
II Is possible to take a perceptibly more
encouraging view OF the general situation
at the end of the week than was commonly
taken or expressed In the business COM
nunity week ago Aside from the inn
menae potential strength developing in the
money position the world around, there
nf a0p;A
upon which to base this more hopeful feel
ing, that is to say there have been no salient
or novel occurrences to which allusion can
be specifically made as those which unques-
tionably mark straight turn about for the
better. It is very clear, however. that the
financial community Is animated by better
feeling The stock market has. again ex-
hibited its obstinate unwillingness to de-
cline when spectators for the fall set them
selves TO work to bring about reaction.
and IL is evident that the stock that ia sold
on these occasions comes almost wholly
from these speculators themselves as dis
tinguished from actual holders. Over the
country last week there was almost perfect
weather for the harvesting of winter wheat
and for the growth of corn and spring
wheat, and there were many indications,
all maybe OF relatively trifling nature. but
all pointing in the same direction, that
business was picking up. The necessary
preparations for the gathering Of the
country's crops this year will entail work
In the iron and steel mills engaged in the
production Of machinery for agricultural
uses and will cause also the railways to
set about repairing their cars and to order
such new equipment as Is needed. Such
orders for cars and engines by the railroads
are of course reduced to the smallest posi-
bic limits jist now, and doubtless will be
10 curtailed throughout the present year.
A certain amount OF seasonable work.
however, cannot DO postponed. and this is
now in progress. Therefore the news
papers contained many accounts last week
Of the starting UP again Of railway repair
ahops and Of steel mills engaged largely
in railroad work. In this relation it is