The Washington times., 1910-12-25

please Wall Street when IT has gotten
into such a condition of mind as at
present AS a matter OF fact the
question Of conservatism, Or lack Of
conservatism, did not. in ali PROBABLE
ity. enter into the matter OF tife Dehigh
Valley dividend at all. until IL was
noted that the stock did not advance
sharply on the dividend announcement
Then Wall Street east about Tor Tea
son and hit upon the theory already
stated. Very Snuct the same fault
finding disposition is noted in cOnnec-
tion with the relaxation OF the money
market, for. when easing rates are
cited as a probat Z fOrerUnner OF i'm
provement. one likely enough is met
with the remark that money Is relaxing
only because business is falling back.
and that commercial inactivity does not
afford very much Of q basis 10 bull
stocks on Be that as II may easy
money has never Yet failed In stinu-
Iating an investment market eventually,
ard this occasion viii prove no excep-
The prediction made in this column
at the time OF the little furry in mon
" ECld be marked by relaxing rates,
rather than stringency- Is well borne
out Dy the developments OF the week
In fact. the decline which ordinarily
takes place "a money in January was
anticipated during the interval and u
ore insists upon a ful4 eNplana IICn OF
this tendency. II IS found IN the Iact
that bank exchanges ID the country
this week aggregated only S2.445. $40
10. a decrease or 15-3 per cent as
compared with the corresponding
week last year The most pronounced
loss was due to the diminished volume
OF New York Cit. -XChanEesr ana that
I Of course. Is fraveable 20 the duliness
/ in the speculative and nna-;elal mar
ket.
The Bank Staten ut
Rates for call money. time money,
alC commercial paper all eased dur
ing the interval Call loans ruled
about = easier. at 5zs l.er cent; six
months time E-oney, On approved col
lateral. loaned about = lower, at 81
10 ! per cent, and prime commercial
paper was about = lower al TO "A
/ per cent The movement IN the latter
I is. seasonal. # being growing ? -ac-
/ tIce among banks at the years end 20
/ sweeten their reports BY buying com
Z mercial paper, FOR they can credit the
Z discount as a proft Al once and carry
4 the paper among loans and discounts
as a resource. Similarly, certain r1rms
: end corporations desiring 70 snow q
I gcCd cash balance in their reports
make a ractice Of selling shOrt-tine
/ paper at this season Of the year II Is
{ a form Of window dressing" which
/ does not change the net results, Tor
OF course. the paper figures anon
bills and notes payable. but somehow
human nature Is so constituted Jnat
men are always cheereC when a nrm
! OF corporation returns a good Casn
I balance in its report even though this
lis Offset BY some other item
1 TIE same condition OF relaxation.
rather than sIringency. In the money
/ rclrkeI al the years enc Is noted
abroad. and in the case OF London
Z market discounts are quoted at a
per GER fCr January, against = Per
cent low, despite . loss OF S14.3f0-S5
in cash BY the Bank OF England Pre-
Ctctious Of easy money for January
anne from Paris. Berlin. Amsterdam
and Brussels. and this leads 20 the be-
lief in foreign banking circles that
Europe may furnish an excellent mar
ket for American investments IN The
near future
The bank statement today was vel
in line With predictions Loans in
iCTeased $2.671.30O in the average, and
S6.246.Se0 IN the report OF actual con
dItfons. The average statement showed
a cash gain OF S5.04s,9G0. the aCtus
a gain Of S291S.1 Zoe An increase o1
Sal $50 in surplus reserve. in tht
average statement. brings that item
20 a figure S10,067.s5O above legal re
tqUiTements.