The Washington herald., 1910-04-25

New York. April 2L-Although the daily
turnover in stocks last week was some
what greater than it was in the week
before ana fluctuations in prices were
also on somewhat larger scale. there
were yet no indications that the stock
market was really emerging from the rut
In which it has travelled for many weeks
past. The market was still one in which
successive up and down movements COW
ering a range Of about five points in the
active stocks were the rule, and fully
three-quarters OF tas transactions In
stocks seemed 10 originate on the floor
Of the stock exchange itself.
Al this IS only another way OF saving
that what are known IN Wall street as
'Oversold' and "overbought'. conditions
OF the market were rather rapidly alter
mating With each other. and very natu-
rally the net result OF such circumstances
Is TO diminish the interest taken in the
market by the greater number Of Gus
toners OF stock commission houses.
The immediate situation Is unquestion-
ably better than II was even a fortnight
since. The money outlook is decidedly
moro hopeful Gold exports from the
country. although they are not far from
the extreme total prophesied a month
ago as that likely 20 be reached. have
not caused any advance in money rates.
but have actually been accompanied by
the presence Of easier money conditions.
Rains Aid Crops.
Drenching rains all over the country
have made the general crop promise
splendid. and steadily declining grain
markets have attested the fact. Business
may not be altogether as lively as it was
earlier in the year. But labor IS well
employed, and those who walk the streets
Of our cities and see the crowds in the
retail stores and other evidences Of an
active trade can hardly maintain the
belief that conditions In this regard are
az all bad
IL is wrong standard OF judgment
that attempts TO compare business con-
ditions either with those Of a typical
panic CT of a typical boom. and vet il
IS this standard that is used by a great
many people in making up their minds
on such matters. a certain class Of mer-
chants and other people engaged I'm bust
ness. remembering the furious activity
known previously at certain times in the
history Of their industries. are apt to say
that business IS bad IL at any time it is
less active than on the occasions re-
fcrred TO- What is generally said in the
best banking circles is that IL the cOun-
try's business keeps up through the
year az the same rate that it does now,
its profitable return will be such as TO
satisfy any reasonable person.
No doubt one reason Of technical char
acter for the declining prices that in the
main characterized the movement OF the
stock market last week was that at the
beginning Of the week the speculative
short interest had been largely elimi-
mated. In the six business days preceding
the chief factors affecting values were
the development of easier money con-
ditions and an improved outlook for the
crops and this necessarily led 20 brisk
covering" Of speculative commitments
for the fall
England Has Good Reserve.
Aside from the unbroken continuance OF
favorable crop weather through the West
last week, the factor Of greatest en-
couragement in the situation was the
proof exhibited Of the strengthening OF
the resources Of the Bank OF England.
BY reason of receipts Of money from this
side Of the Atlantic and by further pur-
chases OF gold IN the open market the
Bank Of England has piled up It's reserve
TO a point which is the highest for the
time Of year Of any shown since 1897.
Exports Of gold from this center to
London or from this center 10 South
America for the account OF London may
stiH continue, inasmuch as it is obvious
that English bankers desire to fortify
themselves against whatever complica-
tons may arise incident 70 the long de-
layed collection Of the English internal
revenue taxes, which is now obviously
drawing near. But Il seems plain that so
FAR rs the near future IS concerned high
money rates are not TO be feared here as
the result Of English acquisitions upon
orr gold supply.
\ matter bearing upon the general
financial situation that calls for some
serious consideration is. OF course. the
character Of the report Of our Comp
troller Of the Currency. giving the figures
OF the country national banks in response
20 his call for a statement Of conditions
on March %. These show that in The
two months previous to the call the loans
and discounts OF the banks increased over
O2,Ooooco, as compared with an increase (
in deposits Of only a little more than
S37,0j0,000
OF this Increase in loans the banks of
our own city were responsible for only
S2I000.0O0. It is in the Western banks
that ~ far the greater portion OF the in
crease in loans has taken place. It can
not now be said, as 1t has often been
said with Justice in the past. that such
increase OF Western loans as compared
with that OF Eastern loans is due to the
fact that Western credit has been utilized
to support a stock market speculation in
Wall street. 1t is indisputable that this,
time II is in the West itself that an
expanding movement OF credit has taken !
place and has been enlisted in the SUD- |
port Of irrigation schemes, land specula- |
lions, and the like.
Almost as Good rs Roosevelt.