Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-01-27
FLOOD OF MONEY
SWAMPS WALL
STREET
INTEREST RATES DROP
TO ALMOST NOMINAL
Clearing House Certificates
Rapidly Going Into Retire
meoti Decreased Railroad
Earnings DiScouraging,

Try Morning Journal Special Iensed WIrs1
New York, Jan. 26.-The feature OF
the financial situation last week was
the continued rush of funds back in
TO the reserve deposit Of the banks.
The returning food Of money 10 re-
serves as perccpuble in the foreign
money centers as wen as here, and
was effective in forcing down the Of
| fetal discount rates of the Bank Of
England, the Bank of France and the
! Imperial Bank Of Germany, and the
open market rates in an markets. Not
| wlthstandlnR this decline in the attrac-
| ton for money abroad, the price haa
risen strongly toward the rate al
/ which exports of gold would be profit
, able The growing redundancy of our
market has been responsible for this
action. Supplies have pressed upon
| the New York loan market with in
creased urgency carrying the call loan
! rate down to almost nominal figures
and reducing the interest rates on
! time loans to figures lower than were
| enjoyed at any time last year Thr
| remaining issue of New York clearing
| house loan certificates has as Il con-
sequence, been going into rapid retire
ment The differences are plain that
the heavy imports of 500 0O0, 600 OF
foreign gold and the rapid issue of
over $4,000 600 national bank notes,
which followed the runs on the banks
last fan to say nothing OF the various
emergency issues of clearing house
certificates, are now proving redund-
ant in the country's eirculatlon Such
a result is the invariable sequence of
financial panic as soon as normal con-
ditlons of confidence In the banks be-
gan to rcestablish themselves. Tho
development was foreseen with such
confidence that speculative operations
in these markets had been largely
concluded in the anticipation of the
event The disposition to realize /"
fits manifest last week was, therefore
normal and to be expected,
In addition to this normal tendency
toward reaction there has been somc
renewed influence Of depression In the
contemplation of some OF the after af-
ferts OF the financial crisis now pass
ed The weight and volume of the re-
turn flow Of funds to banking reserves
are in themselves eloquent Of the con-
traction of the needs Of the circulation
ana the shrinltugr on commercial and
Industrial activity other signs are
corroborative. Increase of
bank clearings are the rule the coun-
try over Railroad earnings have fall
en- to q degree that brings into ques-
ton the rate OF future distribution ON
securities with contingent liabilities.
while even hXed Liabilities are brought
into doubt in the case Of some of the
weaker properties
Advices from the iron and steel
trade show a condition of practical
paralysis to have ensued upon the hn-
anciul crisis, although some moderate
resumption Is reported to have occur
red since
The report to be published on Tues
day of this week of the earnings Of the
United Steel corporation for the quar-
ter ending December 81 Is awaited
nevertheless with some solicitude ana
The showing TO be made for the cur
rent quarter Is also subject of anxious
Notwithstanding the actual existence
If conditions indicating this heavy
OF prosperous activities
here Is not lacking evidence Of hope
n early Improvement The Increasing
abundance of money resources Is look
ID TO as an effective help to this re-
,ival. The doubtful element on the
ide OF the money situation Is sug-
rested by the continued deposition OF
argp corporations 10 finance their re-
with short time obliga
ions, on which also the interest rates
s. kept high, Notwithstanding the ma
erIal reduction OF rates on ordinary
oans The implication of impairment
# credit for purposes Of corporation
borrowing or Of unreieved sen l,N of
apital supplies for use in fixed invest
lents makes one of the conservative
Influences IN the holding tendency
,hioh was the feature of the week in
he markets