The San Francisco call., 1908-08-26
The Situation As Shown by the Amer
lean National Bank

The financial letter of the American national
bank thus gives the financial and commercial
Two years ago people were eagsr to buy
things before they went higher; now the ten
dency is to refrain from buying in the hope that
still lower prices may be obtained. Judging by
experience in similar periods, any rurtner
marked d decline Is unlikely the sta5stcan aus ek
able drop of 10 per cent in the average price
of all commodities since March, 1907. That Is,
the salary of SIS today is equal in purchasing
power to that of 500 year and half ago.
There is no lack of money. The eomptroi-
ler's summary of the reports Of national banks
for July 10 shows that these institutions held
some $62 900 600 more in individual deposits
than they had two months previous. Nearly half
of this gain was credited to the middle west
states, where the great cereal harvests are
gathered, and a little less than 100000 600 was
marked up to the Pacific coast states. The banks
in the large cities of America and Europe bold,
collectively, fully $500, 200 more specie than
seems to be in excellent shape, ready for any
contingency. -,
While the eastern papers are discussing the
prospects of the crop movement, California goes
ahead moving its products to market Inere is
steady procession of ships around the Horn
and up the Atlantic, bearing the fruits ana
grains OF the Pacific slope to European ports,
while long trains of similarly burdened
wind daily across the Sierra and over the west
ern highland to the populous centers OF the east
by way of showing where California s winter
spending money is coming FROM, here are few
now being sold ard shipped out of the state.
$6.00O,00O worth of canned peaches, $2,3O0Ou0
worth of canned apricots, 1000, 600 worth Of
canned pears. 81 700, 900 worth of other canned
fruits. $4,000 600 worth of canned vegetables,
81, 900, 900 worth of prunes, $2OO0D00 worth
of dried peaches, GOO worth of dried
apricots, 81 500 600 worth of raisilS, 81 800 900
worth of other dried fruits, S4.950, 600 worth
of fresh fruits and $4,0OO,O0O worth of barley.
These are of the northern and central por-
tions of the state mainly, and do not include
the immensely valuable fruit products of south
ern California-the %, 900 or so carloads of
oranges lemons etc. that will begin to move
Qa tUyQ ri fnxvQr rd no 0f 10
they include the quantities Of fruit consumed at
home. The figures are not meant TO be COM
prehensve, but illustrative merely cited for the
purpose of pointing out how futile it is to doubt
CONDITIONS IN SAN FRANCISCO
affairs IN San Francisco, while lacking the
volatility of the boom days of 1906, are In
sound condition. and retail dealers report a
gradual though slight increase In sales as
vaeationists return from woods and mountains
to take up once more the regular routine of
duties Postofhee receipts for the trst seven
months of 190S the largest in the history
of the city, indicating substantial increase In
the population.
fully third from the high figures Of a year
ago, and is in fact less than at any time within
five years the high rate of interest demanded
for mortgage loans serves to hold building ae-
tivity somewhat in check. While there is plenty
of money to be had at per cent, borrowers
are reluctant TO accept these terms, and the
excess of offerings is not sufficiently large to
break the market, which is, therefore, practi-
cally at standstill. The remedy will come
sooner or later when the flood OF cheap eastern
money finds an outlet here. However, the city
is fairly well housed Office building has
been slightly overdone. in fact, but there is i
real need for more shop rooms in the down
town district and for apartment houses of the
better class
The requirements of commercial borrowers
are met without difficulty by the local banks
notwithstanding the outflow of considerable sums
to the interior for harvesting needs. Interest
rates firmly maintained
MOVEMENTS OF EXCHANGE IN AUGUST
THE rates of exchange Europe have de-
clined steadily during the month, usual at
this time of the year Bills against shipments
| of food products are coming freely into the
market, and next month the export of cotton
from the southern states will begin. tending TO
increase still further credit balance abroad.
There has been a marked improvement in
South America, notably in Chile, where the
value of the peso has risen in the last few
weeks from 1512c to about 20Ac The Chilean
government is trying to place the currency of the
| government a stable basis of about 36c, and
has sold to French company the concession OF
The first installment of this about 81 600 0O0) is
to be paid in the near future
"A further and almost steady drop has Or
| CURED in oriental exchanges and in silver the
metal having reached 81 1sc per ounce, the low.
est record in years. With the large accumuIa-
tions of silver in India and China the future OF
| this metal looks rather gloomy.
Eastern exchange in this city has shown re
markabie strength, the shipment of California
products to the east being more than Offset BY
| the gradual repayment of loans and advances tc
this coast. principally In San Francisco, during
the last year.