Bisbee daily review., 1909-09-22
BANK RESERVES BE|AGDEPLETED
 ID MOVE CROPS
(By Henry clews)

NEW YoRK.-The strength in the money situation will not be surpris-
 ing to the readers Of these advices last week. The agricultural sections are now actively calling on their Eastern correspondents for money to finance the great agricultural pro ducts and are severely depicting the hank reserves at this center; but 1t is still fair to assnme that a large part of this money will be released before mercantile channels require its most extended use. On the other hand, our large banking interests and some of the most powerful market operators have again been borrowing in London and on the Continent; and the advance in money rental rates that has taken place this week has materially increased our foreign in- debtedness. Cable adyices from all the prominent financial centers Of Europe indicate a world wide awak- ening to the real money situation. and best information suggests that the days of superabundanc in the money supply have definitely ended for this season, The money situa- tion. therefore, suggests prudence and discrimination. Remunerative inter est rates for the banks are not necessarily handicap to an upward movement of important dimensions. especially if such rates are the re suit of improved conditions in trade and industry Aside from the iron and steel industry there is. however, slight indication of any general trade recuperation. But in the particular instance in question the improvement is taking on almost unbridled activity and may well be permitted to coun- teract deficiencies in other direc- tions. The Steel Corporation is at the present time credited with oper ating virtually Its entire capacity. The independent companies are par ticipating in the general activity, and the steel situation as a whole may from the stock market viewpoint be considered in connection with the in- fluence of Steel securities as makers of general security values. The im- pression Is becoming general that at their quarterly dividend meeting in October the directors of the Steel Corporation will restore the common stock to per cent basis, and there can be no question that the strength of the market during the week, ma nipuIated though ic unquestionably has been, has predisposed the rank and file of Wall Street operators to optimism. This means popular dis position to exaggerate the influences that perIsit a favorable interpreta- ton and to ignore as far as possible those of a different trend. Caution ary signals are at the moment un- popular but none the less necessary. When powerful market leaders who themselves own the great bulk of floating securities decide to put prices up with 8 view of disturbing these securities during the excitement at the market becomes one for the nim- ble trader. The most conservative description of the situation at the. moment is that prices are unquestionably high-but they may go higher as the result of the new situation of control that has al ready been outlined. Meanwhile there can be no question that the higher money range will encourage the re- lease of money tied up in low in come yielding investments and long range investments skould therefore be undertaken at the present time with extreme caution and discrimina- ton. For the quick in-and-out trader the market is a favorable one.