New-York tribune., 1909-11-15
MONEY AND BUSINESS.

Monetary conditions. from an interna-
tienal point OF view. are receiving care
full consideration in financial circles
Locally. funds have met with increased
demand. and call rates on the New
York Stock Exchange on Friday ad-
vanced to per cent. the highest point
OF the season. Unexpectedly last weeks
interior demands on New York for funds
also reached the highest point. which is
unusual. in view of the approach of the
normal point where money used in
financing the agricultural requirement
begins to gravitate back to the New
York market. This activity is suggestive
OF mercantile energy in the West. and is
TO that extent all encouraging sign. An
other significant feature OF the money
situation has been the lending OF con-
siderable amounts on call in the New
York market by London and Paris
when the European monetary condition
is one Of serious and ACKNOWLEDGED fnan-
cial strain. Contrary 10 expectations.
neither the Bank OF England nor the
Reichsbank advanced it's minimum dis
count from the per cent basis, and
the Bank OF England superiicially, at
least, presented a stronger weekly state
ment last Thursday than for several
weeks, a feature that was directly due,
however, 10 pressure placed upon the
Bank OF France to relieve the London
situation, and 70 this a very reluctant
response was given. Indeed. the ad-
vances by the Bank OF France were in
most instances on the express stipula-
ton that the gold should be returned as
soon as the obligations it was refinanc-
Ing should mature. Under these circum-
stances the foreign loans made during
the week TO New York seem largely in
the form OF deposits in a market whence
Ii is known they can with exact certainty
be recalled III case Of necessity.
The deadlock in London over the Brit
ish governments taxation proposals
merits consideration in connection with
the direct bearing IL promises 10 exert
on the financial markets here. The
budget has been prepared with Il view
to It's revenue producing ability meeting
the unusual expenditures, whi~h include.
among other items, the old age pensions,
q treasury deficit already accrued, and.
not least, the battleship building race
with Germany. The revenue planned by
the budget is needed; the demand for it
is insistent, and ia the event OF much
further delay or OF the rejection of the
measure by the House or Lords the gov
ernment will be compelled to become an
active borrower on notes in an already
Fnt,o .,-g~ -
additional strain from this source Is
quite likely 10 be an extended one, since
if an appeal be made 70 the country and
the verdict be a favorable one to the
present government IL will still take con-
siderable time 10 place again the pro-
posals in proper form for enactment. II
the verdict should be against the gov
ernmeut the situation would necessarily
be even less favorable. Under these
circumstances a policy of extreme eau
tion seems probable in London financial
circles. For a different reason-namely.
that OF OVERRIDING in stock speculation
and in industrial and commercial ac-
tivities-the Berlin money market is also
experiencing strain. and. ia fact. all
New York must be included-are in a
condition OF more or less financial ten
sion. Paris is in probably the best form
as regards gold reserves. which. how
ever, reflects timely preparations To meet
conditions frankly recognized IN ad-
vance.
There Is little fault 10 be found with
general business activity. In one or two
departments the demand for steel is
rather less urgent than a few weeks
ago, but Increased activity In other sec
tions keeps the total We'll up To the rec
ord marking proportions that have re-
Gently been attained. The high prices of
cotton. the violent fluctuations and the
uncertainty OF the future course are.
quite naturally, interfering with the dis
tribution OF the manufactured articles.
Some attempts were made during the
week 10 adjust the prices OF the goods 10
the new cost Of production. But the
future OF the cotton goods market is. IN
a broad sense. dependent upon the main-
ienance or further advance of raw cot
ton prices, and the situation is, there