The Washington times., 1910-12-11

RECOVERIES AND REACTIONS
KEEP WALL STREET GUESSING
Trading of Professional Character Indicates Attempt Weakness
Mak-Senhment Among Faoaby
Result of Decision in Temple Iron Company Case.
BIZ JOHN GRANT DATER,


practically forgotten, namely. the ques-
ton Of monetary reform. and the ne
cessity Of a bond ISSUE in connection
with the construction % the Panama
canal Secretary MacVeagh put the
case none too strongly when he de-
nOunced our present monetary system
as panic breeding" and what a spec
taciC IL is for q great country when its
finance minister makes the announce
ment, which all bankers know IS true
that 1T Is for the Government to say
whether we shall have panics in the
future or rot. II is mere matter OF
choice"
Government Finances and Money.
Whether under existing conditions.
and the demand for a higher interest
rate on all investments, the Government
could sell S50.O0o.O00 70 100000 900 Pan
anna canal per cent bonds at par.
without the circulation tax, or bearing
a circulation tax OF IL 70 ? per cent as
against the existing circulation tax Of
= per cent on the . per cent bonds and
per cent on the outstanding 3 and 1
per cent issues. remains 70 be seen.
The existing , pev cents with a more
l00A, and personal Investors do not care
for them There see ms only q remote
possibility that the n sw postal savings
bank system will develop rapidly enough
the new Panama lords, while If issued
in competition with the S10G. 10000 > per
cents outstanding- the action would Sc
riOusly disturb the national banks In
fact, the Governments dilemma with
the future financing Of the Panama
canal IS Of inr easing concern
In the mon-y market both domestic
and International, the developments
have been Of favorable character,
despite a lrner tendency for call loans
Lower interest rates were reported from
CHtcag go. Boston. and philadelphia. and
the easier tendency for money in the
Interior has resulted IN an improving
commercial paper market. There has
been a distinctly easier tendency for
market discounts at all important Euro
pean financial centers- and, although II
is too early TO predict on a matter Of
this kind. everything now points 10
distinctly easy money market, at the
time OF the January disbursements. This
should greatly aid the bond market In
no particular IS the easier tone more re
msrkabIe than in the sharp decline Of
demand in sterling exchange 10 q point
cents in the pound under the normal
December Tate-where gold imports are
discussed as possibility. In some
quarters this situation IS regarded as
abnormal. and f. IS attributed 20 recent
large loans made by New York to Lon
don Persons who hold this view pre-
dict that q gold import now would be
followed By shaTT. reCoVeTies IN dis
counts abroad
The bank statement Of the day was
confused preSeutmeut- the report based
OH averages and that showing actual
conditions differing widely. may be
inferred from the fact that the average
statement reflected q decrease IN sur
plus reserve Of $sIs,Z55. while the
actual showed an increase Of S553,325.
To what precise influence this remark
able divergence is O Ie does not appear
clear. but q seems evident that there
has been an extensive shifting or ac-
counts somewhere. and f. may have
some bearing on the TOTeiSu loan oper-
atoms TO which attention has been cali
ed While Il IS scarcely profitable To
discuss the bank statement. under such
conditions. Il seems as though the actual
statement indicated tendencies the more
clearly Of the two In both statements
cash F-rCfuEs decrease, In the average
by 81 - go. and In the actual by S3-855--
go. t. Ter the system o. averages the
reserve stands at but S4,9l5,s5o above
rnuUIrements- The actual statement
shows q contraction Of Sis-2fS.9O IN
loans. and OF S1s116.900 in deposits.
which is more in consonsnce with the
money rates than would be possible
under the other statement, and indi-
Gates that some corrective operation
probably a shifting Of accounts. with
Institutions IS IN progress