The San Francisco call., 1908-10-22
MONEY AND TRADE
Money Expected to Rule Rather Higher
Trade Conditions ImprOying

The New York circular of Henry Clews saws:
uioney market. This partly due to declining
pank reserves, TO shipments of currency to the
interior to slightly increased activity in busi-
Iess 10 purchases of American stocks sold to
Foreigners and to preparations for new security
issues, The latter movement is likely to play
more important part than of late, as there
stiu a number OF large corporations in the mar
ket whose demands were postponed as result
ol the panic One important issue an
,r'o ouneea @ this week, and others Will follow dur
ing lne NEXT three months. In addition there
are several refundng propositions of i'm
pollance that may make temporary demands
. 'iosenent, that is again proving larger than
pected- Inc growing financial independence of
me me West always creates the expectation that
Ihls interior effux will be light; yet the fact
mat interior banks leave their surplus funds on
ueposie mere and draw upon them during crop
anu. anu uade activity keeps the TO and fro move
men, ailve longer than many anticipate. There
mas been some talk of gold exports, largely be-
cause OF the scarcity of bills and the recent
pusing OF our stocks abroad.
.. THE MONEY STATUS
Inc Foreign exchange situation is. however.
Eucn mixed at present. and the shipment Of a
Ie" millions at this time would probably hare
no further effect than to slightly stiffen interest
raIes, @ iaris is making preparations for a $780,
VOO,UoO Russian loan. to come out probably in
November; and the best adyices are that this
VII nave little effect abroad. since all arrange
menus are Well advanced, If not completed Con
sluefatlons such as these having their eff
rect upon interest rates in all parts of the world
snn as previously fntimated in these adyices,
- A~'S .uihVu tue corner as regards cheap
money. The accumulation of idle funds follow
ing the panic has reached its elimination, and
tne stlmulatlng effect of low rates of interest is
pelhg wldeiy felt in reviying trade and
meMeo demand Tor money. Our own bank state
inent certainly reflects this tendency in a strik-
ing manner RESERVES of the Associated banks
nave ralien from $63.S00 900 on August %. the
nigh water mark to $34, 700. 600 October TO- a
drop OF S29, 600 in seven weeks. 1t is also
Wofln noting that loans stood at the record
ngure or 81 ,324 600 600 last week, compared
Win ., OSS, UO0, 600 a year ago. an increase of
Sz4l,Uuo,O0o. or nearly 25 per cent. 1t is well
70 10 pause and consider what has been the cause
OF TINS extraordinary expansion of loans in
time OF acute business depression, and when all
imum.
TRADE IMPROVING
Inc tendency OF business conditions is still
toward slow improvement. In the farming dis
trfcts of the west there is much more optimism
man elsewhere. owing to the unprecedented pros
ting 8 cents and over for their corn and secur-
ing profits 80 to 100 per cent better than before
FARMERS who raise cattle and hogs are also
making handsome returns; hence automobiles
pianos, telephones etc are in good demand In
tne grain belt This state Of affairs will be an
important aid to business revival especially in
the west. In the south contentment and pros
perlty are not so prevalent, for cotton has de-
clined considerably and growers are making
strenuous efforts to sustain prices. As we ap-
proach industrial centers and the great business
cities more sober views are encountered There
the depression has been keenest and there the
recovery is slowest Still conditions are better
ing; railroad traffic shows dstiRct Improvement
and managers are in vastly bffter spirits than
three months ago. There dml spots here and
there; also quiet spells in the markets which
disappont those who expect too much Suffice
1t say, conditions are improving, and that it is
is better that progress be slow and sure than
rapid and reactionary. Contrasting the situation
with year ago. the recovery already established
has been remarkable