Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-11-02
THE MONEY SITUATION.

THE MONEY SITUATION.
The weekly financial review OF
Henry Clews advances some logical
reasons for the boarding Of gold by
some of the European nations. The
tenor of Clew's observations is not
alarmist, and yet is worth noting, to
obtain an insight into European con-
ditions. He says:
The monetary situation becomes
interesting. While there is no pros
pect of disturbance, the tendencies
are not entirely satisfactory. The
growing demand for money is world
wide, speculation based on anticipa-
ton of recovery from the setback Of
1907 having been the first cause for
firmers rates. In due time business
revival asserted itself everywhere
and made larger demands upon the
worlds monetary resources, some
what to the disadvantage Of excessive
speculative commitments. This re-
vival in the demand for money is at
bottom an evidence Of good health,
though the readjustment which it en-
forces in some, quarters is not always
agreeable. Speculative excuses have
been most noticeable, as usual, in the
United States. where the rebound
from the late panic was most pro-
nounced. Germany, also, has been
enjoyingsa market return of business
activity, accompanied by more or less
speculative OVERRIDING. It consequent
ly happens that the chief financial cen
tiers. OF the world are now protecting
themselves against abnormal condi-
lions; in other words, they are wisely
putting on the brakes against spec
ulative enthusiasm, and diverting
their resources to the requirements
.of legitimate trade. London and
Paris have led in this protective
movement, with good reason and with
beneficial results. London was fore
Led to part with about $33,000,000 gold
within month, of which nearly one
half went to Egypt and the balance
to South America and other coun-
new gold oming shrd hrdI rdl dada
tries. Nor was this all; much Of the
cured by other institutions than the
Bank of England; having been alb
~sorbed by Russia and France, and
thus explaining the recent very posi-
tive action of the Bank of England's
directors.
Just why France and Russia are
accommodating gold so Unfortunately is
not exactly understood. In the mid
die of October the Bank of France
held f144,000,000 against e13O,00O, 900
"a year ago. Russia held &132,000, 900
against 2120,o00,0e0 year ago. On
the other hand, the Bank of England
held Only s33, 600, 700 compared with
e36, bd0, 700 Il year ago, and Germany
'e34 100000 compared with SAC, 1000, 900
"a year ago. The reason why France
should be carrying 214,000, 900 more
than year ago at a time of COM
parative financial ease in Paris is not
seasy to determine. There is strong
presumption that present political
and social unrest in Europe is at the
bottom of this policy Of the Bank of
France. Not only the Socialistic ag-
itation, the Spanish war and the Tur-
kish revolution have caused feeling
of timidity, but there afe deep-seated
apprehensions regarding the future
] policy which cause more or less lack
of confidence in the distant future.
Germany is a great power, and As
rapidly growing. Her population is
/ fully 20.000 ,0us larger than in 1882
and is rapidly turning from agricul-
sture TO industry. In 1882 Germany
had about 10000, 900 engaged in ag-
riculture, while IN 1907 the numbers
50 employed had fallen to II 900, 700.
Meanwhile the number employed in
manufacturing had arisen from 49,
4 900 900 in 1882 to 2s,OOo,oo0 in 1907.
SO great a development Of industry
4 implies the urgent necessity for for
eign markets. Fortunately Ger.
many.s foreign commerce IS showing
tremendous strides. In 1882 her i'm
ports were only s7s7, 10000. In 1891
they had riser to $2,0s2, o00. 900. .As
TO her exports, IN 1882 these amount