New-York tribune., 1909-11-22

But IL is Brazil at the moment that Is
the chief beneficiary in connection with
our own loss OF gold. There is. however,
no mystery connected with the proceed
ing. which is due 10 a wholly abnormal
movement Of Brazirs main product
coffee. BY law enacted some time ago
having for its purpose the maintenance
OF the price Of Brazilian coffee outside OF
Brazil a special surtax was ordered.
which was designed 10 prohibit the ex-
portatlon OF coffee from the Brazilian
state OF sac Psulo after the shipments
have reached $500 600 bags for the sea
son l9O9-'l0 The natural result of such
a law was a race OF planters. merchants
and others interested in coffee 20 secure
for themselves as great a participation
as possible in this maximum export
movement; and this race has culminst-
ed in the most active export season OF
coffee in Brazilian history. AT the pres
ent rate Of progress the export limit viii
have been reached about the first Of the
new year. which. speaking broadly.
means that a whole years exports have
been compressed into half-year period,
the coffee year or season extending from
july to July. or the equivalent Of our
governments fiscal year OF course, such
an active movement in coffee means cor
responding activity in payments for the
same.
While II is true that gold is leaving
here very largely on LONDON banking ac-
count. that feature is in great measure
the result Of our own inadequate bankinG
facilities in south America. in which,
happily. American banking interests are
seriously taking up the problem N max
ing improvements. Considered in a
broad sense therefore. the shipments OF
gold may he considered direct payment
for coffee exported by Brazil 10 this
country which is BraZiIs best customer.
our Indebtedness on international
merchandise and finance accounts is very
large al the moment, and London bank
ers. therefore, are favoTably situated 10
draw on our gold for shipment 20 South
America. Japan or elsewhere. and thus
husband their own resources at home.
This is what they have been doing OF
late and what they are not unlikely 10
continue TO do until the budget cOntro-
versy has been settled and revenues are
cCnformed TO che large commitments
which the British government has made
for extra a0rdinaTy expenditures. Pending
such settlement il is not improbable that
the government will become d borrower
I'm London in the form of treasury def
cheney bills. and the prospects are there
fore suggestive that the London market
will be under some strain until at least
well into the new year which is equiva
lent 20 50 wing that similar conditions will
prevail AT Paris Berlin. New York and
all the other local monetary centres that
20 10 make up the worlds great money
market. Locally, the early release Of
funds that are at present being employed
10 move our agricultural products is
likely 20 give financial relief. hut the
worlds outlook for money is certainly
not at all favorable To return of the
nominal rental rates prevailing a few
months ago Call rates on New York
Stock Exchange collateral last week
ranged between and per cent and
time rates for all maturities fell from an
average Of . per cent. early in the week
20 an av7Tage Of a. st the close The
weekly statement OF the New York As
sociated Banks on Saturday show I'd their
surplus 10 be down to within $40 600 .0O0
of the 25 per cent requirement
Nevertheless, trade and Industrial CON
ditions at home are suggestive OF a more
comfortable position for money than Is
likely 20 rule al the great European cen
tres. The demand for iron and steel
products is stiu active. taken altogether,
though in some directions. especially in
pig iron. signs are not wanting Of d dis
position 10 calm down after the recent
unprecedented rush Of orders The great
dryEoods market. which next 70 iron and
steel is considered the most useful
barometer Of the couutry's commercial
progress. is Al the moment more or less
unsettled by the wild speculation which
has taken place in cotton and the high
prices that staple has reached Cotton
il Is true. has quietcd down within the
week though prices are sti.l well main
;ained and while distressing 20 the busi-
ness. as well as the employees Of the mills.
the high values contain some compensa-
tion as makers" Of sterling exchange.
For October. for instance the value of
raw cotton exported from this country
was larger than in any earlier month in
history by nearly 50 oo0, 600. and Novem-
Der promises 10 be not far behind that
showing. Copper. the metal, is not active
for consumption. but the recent heavy
sales for export have created a steadier
attitude among sellers. Prices OF grains
are being well maintained by the de-
mand for home requirements The for
elgn demand is not active. Taking a
broad view OF the mercantile situation. il
seems fair 10 assume that. barring ex-
cessive speculation and an unexpected
demand by London and Paris for their
balances. the release of crop money will
be sufficient comfortably 70 take care of
the requirements OF trade and industry
Bank clearings for the week ended No
vember is showed a decrease OF IS per
cent from the preceding week. due TO the
reduced volume OF speculation. but II
the same time showed d gain or e.5 per