The morning journal-courier., 1908-01-20
FINANCIAL REVIEW Wall Street Now Suffering on Account of Too Much
 Money. DELUGED WITH CURRENCY Effect on Stock Market
 Excellent.
DELUGED WITH CURRENCY
Especial to the Journal-Courier.)

New York. Jan. 19.-Paradoxical though it may seem, wall street, which only few short weeks ago was in the throes of one of the most disastrous panics in its history. when funds to carry on ordinary business were not to be obtained at any rate of interest and when even the suspension of the New York stock exchange was threat ened. is now actually suffering on ac- rount of too much money. Whereas during the period above referred to money on call commanded practically prohibitive rates of interest and was extremely difficult to get even at that and time loans were entirely out of the question during the past week 1t nas been possible to negotiate call loans as low as 1-2 per cent, while lime loans have been freely offered for Ill periods up to six months as low as per cent. In addition to this, strik- Ing development has been the offering pf currency of small denominations at m actual discount. Only a few weeks since, small bills commanded a pre- niunl in this market as high as per bent in exchange for bank checks, while during the past week the same class of currency has been offered at discount of Is and 1-4 per. cent in sim liar exchange.
 It is very evident therefore that honey has now become a glut in this market. and judging from the character of the weekly bank state nent just issued, this condition of af- fairs is likely to continue for some time. The figures issued from the New York Clearing House on Saturday showed a further heavy gain in surplus reserve, the increase, which was much greater than had been anticipated, hav- ing been $16,55143 thus raising the sum of the reserves held by the Asso- riated banks to s295 1S2, 800. The gain In specie and legal tenders alone amounted to s261S5,s00, but on account of an increase in deposits of s3S 800 end in some loans of s9,57s 100 there was an increase in the amount of the required reserve. consequently the growth in the surplus was not near 50 heavy as that in actual cash. How ever, the surplus reserves of the Clear ing House banks now stand at $22,- 635,475, the largest sum held for a long time past. A year ago the surplus was $1S,460. 700 and on the corresponding date in 1906. s16,764575. The surplus compares with the extraordinary de felt reached on Nov. 2S last. during tho height of the panic of s54,103,s0o.
 In respect to the present glut of smal currency in the local banks it may bt ( said that the matter has become 2 rather serious problem. Some of tht larger institutions have in their vaults more than $1,000,000 each in the form oi one dollar bills, while their holdings of amounts. Such currency is not used ir the settlement of Clearing House bal ances.
 With the New York banks so rapidly building up their surplus reserves, the retirement of the s97,000,0O0 Clearing House certificates issued during the panic is now steadily going on. Thu' far about 70 per cent. of the same have been retired.
 w lllc the eHlStlHE pltlIloTc oL lilOllcs may be serving as a considerable in convenience to the banks. it has un occasionally had very good effect up on the stock market. During the pas week transactions on both the Nev York stock and Consolidated stock ex changes have shown a steady increase and brokers are very ju1.-.nt in con sequence. A resumption of the ''odd lot'' buying on the part of investor and those who have heretofore beer hoarding their money, has had a par ticularly beneficial influence on trading on the Consolidated stock exchange ant dealings on that institution are on nov a scale practically double what they were in the closing days of last year Brokers generally report far moI, confident feeling on the part of theil clients. although they likewise note a disposition among them to take profits on the bulges.