The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-08-21

ing so far as possible to check the
flow of out-of-town deposits into
New York, as call money was loaning
at under ! per cent, whereas the rate
on bank deposits was 2 per cent.
The stock market was dull and the
Industrial community had scarcely
begun 10 feel the effects of the trade
revival. Interior banks, in addition
to the large reserves which they
were carrying in the east, were over
Stoke ed with cash in their OWL tills
and everything pointed to a long per-
iod of low and unremunerative o
ey rates.
The money situation today Is quite
the reverse of that of a year ago. 10
begin with the New York associated
banks are carrying a surplus reserve
| inst about one half the size of that
of last year and while this itself is
not such an important matter, wnen
it is considered that the crops will
require as large a money supply as
in former years. a stock market run
ming in the neighborhood of 1,000,-
900 shares a day, and the industrial
community operating close to full
capacity there is reason to expect
that from now on the money market
will be more favorable to the lender
than the borrower. In fact, the
current month is the first in over a
veal that the lender has been able to
name his own rates. The advance in
call rates to 2R per cent and in
| time money. which is the true in
dicator of the money market, to a
minimum of 4 per cent shows that
the turn in the money market has
come to stay.
That a higher money market was
foreseen by the worlds leading bank
ers was indicated by the failure OF
the Bank of England TO lower its
official discount rate to 2 per cent
although after the half-year settle
ment period the institution held the
largest reserve of bullion in its his
responds more readily to pressure
tory.
is we'll understood that money
than does any other commodity and
the fact that the rates have been
low for so long was due chiefly to
the excessively high reserves and
the inactivity in the demand. The
large flotation of bonds in the past
twelve months has %gradully used up
"a large part of the reserves so that
a substantial part of the circulating
capital of a year ago has been con-
verified into fixed capital and the
volume of available credit has been
proportionately reduced. The supply
of credit and the demand + now
approaching an equilibrium and the
tendency will be for rates from now
on to move upwards rather than the
reverse.
To prevent excessive rates. how
ever we have this year in our none
bary system authority TO issue emer-
gency currency to the extent of
$500. 000. 600. This will o be called
npon except in the case of call rates
going TO above 6 per cent which is
quite unlikely this year. Gold will
be imported in large amounts before
call rates advance to ven 5 per
cent and a large part OF the surplus
cash which is now scattered through
out the country can he ulated
in the centers of greatest need.
u ma ne Sahu. however, InaJ the
money market is now entering a per-
iod when it will require considerable
watching by those who need credit,
whereas a year ago money was the
least important of all the big subjects
of Il economic development. We
have passed through a Presidential
election; the tariff is definitely set
tied; the governments campaign
against the large corporations has
passed the climax of its activity; the
stock market reflects the confidence
of The large business interests and
everything points TO a long continued
period OF prosperity. The increase
in the volume of business will call
for a large supply of money-the
stimulating factor in the business
development of the woodland while
the present supply of money is large
enough 10 take carr of needs for some
nine in the future, a change in the
situation has come which will require
large borrowers TO pay more atten-
tion 70 future r9quiremnents than
was the case a year ago.-Boston
Financial News.