The Washington herald., 1910-04-18
week in Money Market.

Week in Money Market.
Again, the money situation last week,
although II did not change Its face ex-
/ ccedIngly. yet obviously softened. Both
because OF large receipts of gold from
this country and OF its ability TO pur-
chase unhampered by competitive bidding
the new gold weekly laid down IN Lon
don from the South African mines. the
Bank Of England exhibited on Thursday
q large increase IN the proportion Of its
reserve 10 liabilities. and as a result
money was IN less demand in London
and foreign bankers were less urgent here
In their requirements for gold.
Therefore the volume OF gold exports
last week BY no means reached the high
figures that In the week before Il was
predicted they would. Time money rates.
although they hardened a little one
or two days. were easier afterward, and
the price OF call money BETRAYED no
tendency 70 rise above 81 per cent II
was. too, perCcpuble that along with the
mitigated demand for money from Europe
there was a movement Of money 10 this
center from the interior Of the country.
Such a return flow OF funds is normal
70 the time OF year, and there are those
among our local bankers who occupy
high places IN the country's general
banking world who declared that there
VIII be easy money at this center from
now on until the fall OF the year.
Whether such pleasant prophecies will
prove true II tho stock market is 20 90
on rising in the way IN which It did last
week may perhaps be doubted. Such
movement would inevitably entail an en-
largement OF bank loans. and worlI6
have only one effect upon the charge for
financial accommodation. But the SUD-
position IS that an upward movement in
prices II sustained upward movement
occurs will not 80 on by leaps and
bounds, but Will proceed methodicaTy.
with frequent reactions and pauses for
breath taking. and that it viii derive con-
siderable assistance from European pur-
chases OF our securities.
Fall in Commodity Prices.
Finally, and indeed in the opinion Of
not a few intelligent obse- rers chiefly.
the more encouraged sentiment in the
financial community last week was due
20 the further fall in commodity prices
AMI the better crop prospects in the
West and Southwest. The trend Of com
modify prices toward a lower level has
been noticeable for some time. Manv
weeks ago the government estimate an
peared. showing a larger quantity Of the
agricultural staples still resting in farm
ers' hands at the beginning Of the crop
year than has been seen before at anv
corresponding time for many seasons
back.
The statement thus made was corrob-
Grated by great variety Of independent
observation; and it was evident 20 nearly
everybody who considered the matter in
a disinterested way that the farmers OF
the country were TO a great extent hold
Ing wheat and corn for higher prices
The impression made by the SI.3o price
for wheat resulting from Mr. Patterns
corner in 1908 was deep all through the
agricultural section. and from the be-
ginning Of last years harvest the hope
was strong with our farmers that more
such corners would be run for their
benefit in the present year. But as time
has gone on. these visions have faded.
The supply Of foodstuffs furnished by
other exporting nations has kept our own
surplus stores OF grain at homo and has
relatively added to them very consider
ably. Thus, with new crops already in
progress, our agricultUrists are finding.
or many Of them are finding, that they
have overstayed their market in grain.