The Washington times., 1910-08-14
By JOHN GRANT DATER.

f.iZrd for ma intaIuinC a strong position
8 IN view OF the political uncertainties and
. the unusual demand which may tail
upon the banking institutions in con
neCtOn with the cotton crop movement
provided the English and continental
! bankers insist upon the Impossible DdIlk
guarantee of cotton bills Of lading-
Aside from that they point out that the
reserve in the New York banks is the
companies and interior banks may court
some percentage OF their New York de-
posts as reserves Then, too, the recent
increase in reserve is in part due TO the
free deposits OF the trust companies
maintained lU the banks in consequence
. OF the low call rate Local hank Of
fcers say that a csIl rate OF , to 8 per
cent maintained for a week would result
in direct lUaning in the market by the
trust companies OF trust company funds.
+ and that loans and deposits In the
banks would diminish almost as rapidly
az they have recently increased As FOR
emergency currency. the banks hold that
such an issue would disturb Europe and
the Interior almost as much as an is
sUlnce OF clearing house certificates in
consequence they insist that a strong
position Is necessary, ana this they say.
can he maintained only by restricting
borrowing
The Basis Of Prosperity.
Without doubt the most important
single development OF the week wa the
publication ora Monday Of the Govern
ment report showing the condition OF
the crops on August J. The Govern
ment figures were something in the
nature Of a surprise, in that they show
ed a gratifying Improvement In wheat
and a loss in pract lcalIy all other crops,
the deterioration Ca corn running 70
the heavy total OF 1913. 00Q- \ heavy
loss In corn was looked for, but no esti-
mate of loss ranged as high as the
. Government nsures placed IL since
The condition OF the wheat corn. and
cotton crops have reached JEe markets
Wheat iu the Northwest has certainly
been favored by better Weat her, AID
the advance 10 the cereal Is attributed
more 10 the shortage in the French and
Russian wheat harvest than 10 any
+ further injury or the domestic crop. Al
though both cotton and corn are feat
. ures in an active speculation in these
commodities. the sharp advance in price
seems 90 indicate that there has been
no pronounced Improvement in CON
dItion since the Government reports
adverse conditions here and there may
affect the speculate price OF the com
modities, banking interests believe that
thc STain crops VIII turn out SuDStau-
TALLY as Indicated IN the August figures
The cotton iutCome Is still something Of
a problem but the reslEt VIII assuresjlv
ana D. may reach ll-J1l.Ge3 or 100000
bales
Financial interests believe that while
moderate. instead a bumper crops. may
MAKE for higher prices. and thus work
inlurlOusly in the International trade
situation, the total yield viii prove
sufficient for the couutry's require
mentS- The more cheerful tone in the
market OF the week was assur~-tly based
upon the promises OF the harvest There
IS no sign Of serious crop damage any
where. and what IS assured VIII furnish
tIe country with an enormous volume
OF business I'm nUTfUU and selling and
Transporting the crops. They are sub
Stdutidlly. taken in the aggregate. silar
tley were last year The following is
Iue crop estimates on the basis OF the
Government acreage and condition FOR
august. compared with the final returns
last