The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1908-01-08
THE PASSING PANIC.
REALLY HOPEFUL PROGNOSTI-
CATIONS SENT OUT FROM
NEW YORK.

new YORK, Jan. 5.-Ihe opening of
| the new year sees a disposition re-
hected in the financial markets to
turn from the contemplation OF
mournful yesterdays and to look for
ward with hope and confidence to the
future. The conviction is firmly based
that decided Improvement is ahead
but this conviction has been tempered
by some anxiety over a remnant OF
unpleasant consequences of the fnan-
cial crisis yet to be gone through A
sepcial field of uneasinfSS was the
provision for the annual settlement in
the money market, which were unus-
ually heavy, while the resources Of
the money market, although rapidly
| improving, were still much impaired.
The smoothness with which the turn
OF the year. was effected went far to
encourage sentiment and to establish
| the confidence that steady improve
ment in the financial position was to
be expected henceforward. The call
money sale did not get higher than 20
per cent, which compares with a
maximum Of As per cent. in the cor
responding week of last year and 1925
| per cent in the year preceding.
Still more significant of the growing
improvement Of the position was the
rapid dwindling and disappearance of
the premium on gold, which signslizeG
the first business day Of the new year
SO long as the premium persisted an
| lnsurmOuntable obstacle remained to
the reestablishment Of normal bank
ing position.
The London market was so far
| reassured by this DEVELOPMENT that q
rapid decline ensued in the London
discount rate and the Bank of Eng
land was constrained to mark down
its official discount rate from per
cent. to per cent. in order to avoid
losing touch with the money market.
The per cent bank rate was the sig
nal Of continued distrust in the out
side world Of the American position
and its abandonment marks the re-
turn to faith in the passing of our
crisis.
In New York additional funds have
appeared in the time loan market and
business in that department has taken
on some degree Of activity, although
interest rates continue high. Growing
| demand for high grade mercantile pa
per is also promise Of relief from one
| OF the most threatening sources of
embarrassment to come growing out
Of the heavy maturities falling due in
that department from time to time
The shrinkage in buying power.
which has gone with the financial up
heaval. the slowness of collections and
the stringency Of the money market
which offered small prospect of ade-
| quate accommodation for the exten-
sion of needed credits, threatened a
which disastrous consequences were
| dreaded. Credit experts in the New
York banks are more hopeful OF
| needed accommodation being forth
coming to facilitate the process Of H.
quidatiOn, which is a recognized me-
ccssity to some extent in commercial
affairs and which is now hoped may
be conducted with deliberation and
good order.
The publication Of the bank state
ment at the close of the week disclos-
ed the free inflow Of currency to New
York for the week. This development
| is of the utmost importance as mark
| ing the passing of the feeling of dis
| trust of the New York banking posi-
| ton and promising rapid reestap-
| lishment of the normal position.
1t thus happens that financial mar
Hets has been disposed to ignore some
| Immediately unfavorable factors in
affairs cheered by the Frightening
| financial prospect. A striking exam
pie of this was afforded in the stock
market Of the first day of the new
year. There converged on this marke,
| the news Of the appointment Of a re-
ceiver for the Seaboard Air Line rail-
way and the reports from Washington
| If an intended suit by the government
riman railroad merger. The market
| wavered under this shock but the ef-
feet was temporary and strong re-
covery ensued before the end Of the
day. The ensued Of railroad earnings