Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-04-20
Cash in Banks So Large it Cannot Be
Prohtably Used Here.
CALL FOR GOVERNMENT DEPOSITS
Banks Would Not Object to Paying
Up at Present.
CHANCE FOR NEW SECURITIES
kHown waists Of Railroads Expected
20 Ahssrb n Considerable Amount
Of the surpius Money I'm
Banks.

NEW YORK, April is--Growing ease and
plethora OF funds IN the New York market
was the marked condition OF the finan-
cial wo.di last week. with the midmontnly
dis bui ~ eR,s Of dividens Ia per cent
interest," rate was found necessary TO ef-
feet TIE placing Of funds on call and ninety
day loans fell below q per cent The be-
ginning OF exports OF gola was the rat
urai conseauence Of this condition ami
call from the United States treasury for
the return Of an instalment Of govern
msnt deposits Is not expected to have any
material effect in stiffening money rates
That the plethoric condition Of the money
market Is due In an important extent to
the violent measures for relief taken since
che panic last fall is true. but the shrink
afe in trade activity IA indicated. also to
an extent which deprives the ease Of money
OF much OF it's favorable effect. Until last
weeks engagements Of gold for export
there had been no return Of any part OF
tine aO5,OoO0oO OF the metal which was inn
ported durlnf the financial crisis last fal
The retention Of this great fund Of reserve
money was facilitated by the enormous
merchandise exports which went forward
l.ionth after month in the process OF liquid
alton to meet cash requirements. In March
for the first time since October the value
of exports fell below those for the Ncorre-
spending period OF last year. Although the
shrinkage IN value OF imports has been
much more violent, It Is is,expeeted that the
outward movement Of gold VIII attain con-
siderable dimensions.
The movement is likely TO be diverted In
part to Germany, the Imperial bank making
an allowance OF interest on-shipments vail
in transit in order to facilitate the move
ment 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 interest rate in London to
considerable extent.
The flow OF funds to New York from the
domestic Interior meanwhlle continued In
undated votuuls and the surplus or the
New York hank reserve is assuming an
unwieldly volume.
Chance for New Securities.
Money market conditions. therefore seem
TO be reaching the condition promising
success for new offerings Of securities. The
aSnown necessities Of the railroad cor
porations promise large issues OF new Sc
curities as soon as conditions become propi-
tious. The Union Pacific. the Illinois Cen
trail. the Delaware a Hudson, the New
York Central. the Interborough Metro
politan and some minor companies have
announced their plans already. Tenders for
these issues win be awaited with great
interest to indicate the course of the in
vestment situation. A factor having some
bearing on thiS situation is the borrowing
by some railroads privately. as reported
last week. on temporary notes on which
the interest rate Is said to be considerably
above the prevailing market rate. Aside
from the needs of~the corporations, the de-
mand for loans is slight. and the ease
of the money market is due TO this in equal
part. with the abundance OF supplies
The course OF earnings OF railroads had
not turned for the better yet in sufficient
degree TO help their credit. in spite Of the
progress made IN cutting down expenses
TO meet the inroads on gross earnings. The
latest report OF the committee on car ef-
ficlency OF the american Railway asso-
citation showed that on April the num-
ber OF Idle freight cars had increased since
the previous report on March 49, by s.465.
after having been diminishing successfully
each two weeks period since February S.
This Disappointing showing was considered
corroborative of reports for some time Of
a renewed contraction IN trade activity.
This contraction Is OF especial effect oc
curing IN the metal trades. A. fresh de-
cline In orders for steel products. insta-
bility IN the iron market and continuous
decline IN the prices OF copper make a
burden for hopeful sentiment to contend
with. Recurring reports OF an intended cut
IN prices Of steel products have an un-
settling effect in the trade in spite of the
expressed determination OF the allied in
terests controlling the largest portion Of
the output to maintain prices
croe SfNospects are growing influence
on sseeS alive sentiment. From the high
promise Of the condition on April l. shown
by the government report. the need Of
moisture has made this influence an un-
favorsble one for the securities market last
week Dealings IN securities, however are
unimportant, owing 10 the short weel.
caused by the closing Of the stock exehanos
on Friday and a.fnra,.-