The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1908-01-10

THE EVENING ST
| ency to attain a level cohsonant with
the changed conditions; and this after
making full allowance for the pros
poets of diminished profits and lower
dividends, which are practically sure to
be encountered The most important
fact in stimulating recovery is the inn
proved condition of the money mar
ket. The currency premium has practf-
cally disappeared. Our bank reserves
are rising and very soon the money
market will be working under natural
influences. The striLgency usually ex-
perienced in preparing for January
disbursements did not materialiZe this
year.
Currency will shortly begin to
sened activity in business, together
with declining prices will quickly re-
build our bank reserves and leave us
with a plethora of cheap funds great
ly augmented by the additions to our
currency supply during the last few
months. Our supply of gold has been
much augmented by recent importa-
tioLs; and the prospect of it's reten-
ton has been somewhat improved by
better financial conditions abroad. Th.
Bank of England is in strong condition.
as emphasized by reduction of it's rate
from to per cent. aid London was
very slightly hurt by our panic. Ger
many, too, is in better condition. and
seems likely to escape the financial
crisis once feared while France ap-
pears totally undisturbed by our re-
cent financial crisis.
More Confidence.
1t is worth noting. also. that
better sfeeling is developing
on the other side regarding
American securities, owing to the fact
that We are righting the abuses of
mismanagement which did more to
discrcdit us abroad than. the vicissi-
tudes which came from legitimate &C.
onomic movements. American securi-
ties have always been profitable TO
foreigners. and as long as they are
financed on sound principles and by
men Of integrity. they will continue to
enjoy a nigh reputation amongst for
eign investors. In estimating the flu
ture of the money market while not
overlooking the unsettled business out
look nor the unsatisfactory railroad
situation, it must not be forgotten that
the coming ease in money will exert a
very important effect upon security
values There are many very wealthy
individuals who are only indirectly af-
fected by business reaction and having
large means will be sure to take adj
vantage of easy money. When money
is in large supply at low rates. as will
be the case before very long. specula-
tons inevitably revives and more Or
less initiation follows. This is another
reason why the stock market often
displays activity and strength wher-
DEPRESSION and stagnation exist else
where
We Have Balance of Trade.
Our foreign trade is showing not
merely gratifying change. but an en-
couraging tendency. The decline in
merchandise values here encourages
exports and discourages imports, with
the result of leaving a larger balance
in our favor good deal of attention
is now being given to the political
outlook and the presidential cam
paigr.. The latter is generally an ele-
ment Of more or less disturbance. This
year however, there are no important
iunsettling issues at present in sight
Congress never enacts any important
legislation in a presidential year. an!
the issues of the campaign thus far
promise to be more concerning persons
than principles. There may be- some
talk about tariff revision, but the
prospect of action in this direction
seems remote when one considers the
strength of the republican party and
the power of the stand patters.' Ad
vices from Washington indicate that
the plan 1 have been advocating for
giving elasticity to our currency for
some time may be adopted and become
a law.
Currency Reform.
The plan is for congress to au-
| thCr!Ze national banks to increase
their ordinary circulation by an emer-
gency circulation to the extent of say
20 per cent of their paid-up capital.
the amount to be limited to 100000
600, and to be issued upon approved
savings bank securities, they to be
deposited with the comptroller of the
currency. This special issue of cur
rency to be taxed to such an extent as
to compel the speedy return and cam
collation. of such notes when the bust
ness needs no longer exist for the ad-
0itiOnal currency The plap of ;SS,,ipo