The Washington times., 1910-05-29

| NEW YORK, May 2S.-WaH Streets
| business week, curtaiIed bv the closing
Of the exchange for an extra holiday on
/ Saturdav, was marked by a number OF
| favorable developments. but moi all hap
] penings we're OF that character, and the
| future is enshrouded in so much uncer-
tainty that good news excited little. IL
| any, Influence on securities There was
| some slight increase in the volume OF
| business. b.t this was almost entirely
Of profes sIonaI origin The feebleness
Of the ralH which followed after the
sharp break in prices on Wednesday.
had depressing influence on specuIa-
! tive sentiment at the weeks end
/ Il is difficult 10 make a philosopher
out Of a hungry man. and, applying the
| case 10 the financial district, il is per-
/ haps rather TOO much TO expect cheer
! fuiness from brokers when business Is
/ unsatisfactory II costs so much 20 live,
( and it costs so much 10 do business
! these days. and the average man IS so
little the philosopher that it is diff
cult for any of us 10 see good in in
| activity. But -cdlly. in view Of the I'M
! certainty which surrounds the future,
ana in view Of certain atisfactory
/ features I'm tue present situation. stock
market dUiiHess has its favorable side.
Some Banking Readjustment.
For instance, it was made clear by the
report Of the Comptroller Of the Cur
reTicy under the call Of March .. that
the banks of the country as a whole
could not go on eXpen ling loans and de-
post liabilities much further. National
banks Increased their loans between the
calls Of January 81, and March p, no
! less than Szl2,5S9.7lg. and within the
year. or between the calls of April %.
1909, md March g last, national bank
loans were inflated Si6S 9S2, 30 This lat
ter expansion was accomplished I'm the
face Of a loss Of legal tenders and specie
or Si866l,ooo In view OF the decrease in
actual cash. IL is quite clear that the
/ gain i'm deposits Sf0I. 791.I7I. during the
I same interval was the result merely Of
credits granted by the banks. a further
analysis Of the Comptroller's report. as
IS well known. disclosed the fact that a
large proportion " The loan exhaustion
was In Western and Southern banks.
Attention is directed 20 the above
situation because il serves TO emphgSiZa
one favorable development Of the week.
nyJel IN large commercial banks but
which passed practically without COM
ment in Wall Street il is this. More
commercial paper was offered for ra-
discount TO New York banks By their
" estern correspondents last week than
at any time since 400. IL is apparent
that Western financial Institutions or
Sclne OF them, are taking advantage OF
this quiet interval in business 10 --t
their assets IN liquid form, place them
selves in funds. and thus prepare in
advance for the crop moving demand
This is step IL the right direction. for
II Is quite apparent that money rules
easy now more as a result of inactivity.
from whatever cause imoelled. than
from pienutude Of funds and the
opinion is growing that real test viii
be applied 10 an markets with the de-
velopment Of the harvest demand for
money
Dearth of Investment Capital
That there is an actual dearth OF capt.
tai available for investment, except al
much higher interest rates than we
have been accustomed 10 for long time
is disclosed by the experience Of som.
Of the leading cities Of the country in
disposing Of new bond issues. Thus,
within a comparatively few DAYS, Phila-
delphia was unsuccessful in its efforts
TO float an SS.0o0,00o thirtv-year I per
cent loan. at par. receiving bids aggre-
eating but $50, 900. Baltimore had
SIN lar experience with s.. +hpg my
wear ( Der cent loan. receiving bids OF
but S2f5.IC0 az par, or better. while other
biCS ranged from $3.50 10 1914, and Jhal
city is engaged in retailing one Of the
best municipal issues IN the country,
AT mar. over the counter. chicago. Win
i'm the week, failed TO receive a bid -
high as par for a ~ per cent snort I
term three-ye2T issue, and somewhat
similar and wholly unsatisfactory re-
suits have attended offerings by Such !
Iii. nr# NN.
OREGON, and Waterbury, and Stamford,
Conn with per cent loans. il is aD- !
parent that 10 float bonds, under exist
iu.. circumstances, no matter for what /
purpose, interest rates VIII nave 10 DC !
made unusually attractive
At the present time, one who taxes /
the broad view of the situation can /
see many things that are working to- |
weird rectincauon by the go" 81 80,
ess For instance, inactivity, In the /
security markets. itself relaNeS Jne 1
tension or the money market, permits /
on accumulation of funds, ana tactii- !
tates adjustment elsewhere. ne ~
tern,tionaI trade situation. which mas 1
stood in great need of relief, has Ger /
tafnIy been improved by the extensive /
sales Of securities TO Europe reported !
recently, the two most impoT l9hI OF l
which were definitely concluded dur I
ing the week, and further improve 4
u,ent will asSuTedly result from the !
violent break in wheat. the SNmpa-
fIpfir decline IN corn. st++4 hlle Si4Ht IL /
casing off IN the price OF cotton And /
there is another development impend- !
Ing. which from the Wall Street view I
point is accounted favOrable-in six 4
weeks. or thereabouts, Congress Will /
adjourn.
Commodity Prices Declining.
without doubt very much remains in
the situation that calls for correction,
and until the process and progress of
reimbursement becomes more clearly /
defined nan at present uncertainty
will Prev IL and markets will hest
tate: hut il serves no very good pur-
post to ignore, or seek 10 minimize,
Sucn things as are favorable, and par /
not when peSSimiSm in Wall /
Street has become chronic. For in !
stance, take the prices Of commodities.
tt is admitted that they are still high
compared with some other years. but /
the price tendency recently has been
in the right direction for the con-
Sumer- Cash prices at New York this
week, compared with the highest of |
the year, show wheat SIO!a. per !