Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-01-27
CASH NOW PLENTIFUL
Rush cf Fun-7 2ack Irto Reserve
Banks ths Feature Of th, Week.
INTEREST RATES FOL ~ WIN
Really hors Money in Sih ~
There is Present Need + z
BANK NOTES BEING RETn
Business Shows a Tendency to Go Slow
on New Investments.
BANK NOTES BEING RETn
WAITING ON STEEL REPORT
Iron Trade Vow stnsnant, bot There
Are sisns Of Revival. which
IL One of the Most En-
coursEinE Fcaturcs.


NEW YORK, Jan. 26.-The feature Of tire
financial section last week was the con-
tinuod rush OF funds back into the reserve
deposlts of banks. The returning flood Of
money TO reserves vas pcrceptible in the
foreign money centcrs as we'll as here and
as effective IN forcing down official dis
count rates OF the Bank OF England. the
Bank OF france and the Imperial Bank of
Germany, ana the open market rates in all
markets Notwithstanding this decline in
tie attraction FOR money abroad the price
has risen strongly toward the rate at which
experts OF gold would be profitable. The
growing redunrancy OF our own money
market has been responsible for tins ac-
tion.
Supplies have pressed upon the New York
loan market with increasing urgency. carry
ing the call loan rate down to almost nom
insl figures and reducing the interest rates
on time loans to figures lower than were
enjoyed at any time last year. The remain
ing issue Of New York clearing house loan
certificates has as a consequence been go
ing into rapid retirement The rapid easing
OF the money market has not been affected
by the notice OF withdrawal OF $10,Oo0,O00
of government deporits from New York
banks, partly because of the large current
iefcit IN the government revenues, but
also by reason OF the accumulation OF funds
being more rapid than the demand to take
them up.
This IS made manifest by the heavy tide
Of bank notes out of che ciruladon of the
country. reflected in the current redemp-
zion OF these issues at the United states
treasury, and by the growing movement
!, on the part of the banks to retire them by
means OF deposit OF lawful money with the
mn
plain that the heavy imports of 100000. go
of foreign gold and the rapid issue of over
s50000,OcO national bank notes which fol-
lowed the runs on the banks last fall TO
say nothing of the various emergency IS
sues OF clearing house certificates, are now
proving redundant IN the country's circu-
lation. Such result is the invariable Sc
auence cf financial panic as soon nor
NAL eondltiona OF confidence in the sOenks
begin 10 rc-establish themselves. The de-
relopmcnt was foreseen with such conf
dence that speculative operations In the
securities markets had been largely con-
cluded in anticipation OF the event. The
disposition to realize profits manifest last
week was, therefore normal and to be ex-
pected
In addition to this normal tendency
towards reaction there has been some re-
uewed Influence OF depression in the con-
temptation OF some of the after effects
~ the financial crisis now passed. The
weight and volume OF the return flow OF
funds to banking reserves are. in them
selves, eloquent OF the contraction OF the
needs OF the circulation and the shrinkag,
in commercial and industrial activity Other
signs are abundantly sorroborative. De-
crease OF bank clearings are the rule the
country over. Railroad earnings have falleT
off to a degree that brings into question
the rate Of future distribution on securities
with contingent liabilities. while even fixed
liabilities are brought into the class OF
doubtful security in the case of some oi
the weaker properties.
Iron Trade Dull.
Advises from the iron and steel trade
slow = condition of practical paralysis Il
have ensued upon the financial crisis, al
though some moderate resumption is re
ported TO have occurred since. The repor
to be published on Tuesday of this weel
of the earnings OF the United states Stee
corporatlon for the quarter ended Decem
Der 81 js awaited nevertheless with som'
soiicitude and the showing to he made FOL
the current quarter is also the subject O
anxious surmise.
notwithstanding the actual existence o.
conditions indicating this heavy contrac
iion OF activities there Is not lacking evi
dcnce OF hope IN early Improvement. TIT
increasing abundance of money resources
is looked to as an effective help 70 thi
revival. The doubtful element on the sid
Of the money situation Is suggested by IN
continued disposition OF large corporation
Ia finance their requirements with shor
tinie obligations. on which also the interes
rate is kept high. Notwithstanding the ma
terial reduction OF rates on ordinary loans
The implication OF impairment OF credit 10
purposes OF corporation borrowing OF o
unreneved scarcity OF capital supplies 10
use Ia fixed Investments makes one OF th
conservative influences in the halting tend
cncy which was the feature of the wee
An the markets