The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1909-07-31
CROP REPORTS


however, as the new financing OF
the next six or eight weeks is an
nounced.
Money is still abnormally cheap
and there is no prospect oil It i'm.
mediatly becoming sufficiently
high to unsettle the investment
markets. The New York banks
report an actual surplus OF S34,
600, 900. which is rather extra
ordinary for the opening week OF
Juiy. The trust companies also
have a cash OF si36,ooo,-
900 as against $4,000, 900 at this
date last year, so that the joint
bank position represents exception
al strength. Money rates may be
expected he work gradually higher,
however, within the next six weeks
In that period--generally about
August i5-the currency move.
ment ordinarily turns against New
York and the banks OF the great
harvesting sections OF the west
and southwest call on their east
ern correspondents to supply
them with the necessary quota OF
crop moving currency. This is
always an important movement
which has to be skillfully handled
in order to prevent the uniayorable
money market response that is in
cident to the shifting Of accounts
and large shipments oil actual
curreRcy from the centers
OF the east to the distributing cen
ters OF the west. We e no high
money in sight and nothing in the
situation so lar is at all suggestive
Of money market disturbance.
With the opening OF July some OF
the banks have Withdrawn money
from this center in order to pre-
pare for the crop moving demand
and for the surrender OF public de.
posts to the United States gov
eminent. Under the terms OF the
treasury ruling recently made, the
banks will have to pay over S25,.
900, 900 TO the government during
the next four weeks. This will e
duce the volume OF government
deposits in banks to something
like S35.ooo,o 900 which is about
the lowest level that the treasury
can get along with, so that the
banks will dot be exposed to such
Withdrawals in the future. The
decision OF the Senate finance
committee not to make provision
in the new tariff bill tor any ad.
ditional financing by the govern
ment makes it reasonably certain
that the United States treasury
will later on offer another issue on
Indebtedness. Since these notes
carry three per cent interest and
can be issued to the extent Of
SIoo, 900 900, they will be much
more convenient to place than an
offer OF Panama q per cent bonds
oil which s45, 900, 900 remain TO be
issued. The treasury is in a
very much better position, how
ever, and the increase OF customs
revenue following the enactment
Of the tariff law may place it in
possession OF sufficient funds to
borrowing OF any kind.
While the corporation tax fea-
ture OF the tariff bill involving a
tax. OF a per cent on net earnings,
is dsliked by tinanciers it is not
believed that the burden will be
sufficiently oppressive to really
affect security prices. There is
an excellent chance that the tax
will be reduced to one per cent,
and that holding companies will be
altogether exempt from its pro-
visions. Whether these changes
are made or not, however, there is
reason to believe that the people
have become sufficiently familiar
with the new law to lead to its
ready acceptance when the meas
ure is really enacted. We believe
that within a month or two the law
will be on the statute books, so
that there can be a speedy adjust.
ment by business interests 10 its