The Washington times., 1910-05-02
MONEY SITUATION
CAUSES UNEASINESS
Henry Clews Expresses Be
lief That There Is No
Cause for Worry.

The monetary situation eXCites some
concern more perhaps than is neCes-
sary. New York bank reserves are
low consequently preparations for
May ISbursements. the renewal OF
gold exports. Iessened interior
movement. Treasury absorption, and
cotton financing forced a temporary
advance in call and time money The
posi- bility OF Europe making still
further demands upon our gold sup
ply eXerJed an unfavOrable sentiment
al effect at a time when market opin-
ion was already representative. It
had been hOpeC that the decline in
commodities would stimulate exports,
and Il is believed that Europe will
readily take our new issues II terms
are made satisfactory But the Iact
that London is holding on for better
terms inevitably affects this market
adversely. As TO the future OF the
local money market. there is no cause
for concern Funds have been return
ing from the West with more freedom.
and this movement viii be shortly re-
neWed. It is true the West mas MADE
large advances 10 land and other
speculative schemes upon when II
would be impossible TO realize quick
~. but the best adviCeS from western
bankers are that this movement mas
not run 10 such q dangerous point 2S
is sometimes believed There is every
reason to believe that the Western
banks are abuudantly able TO Il HS
care Of the situation An undercur-
rent Of uneasinSsS IS developing re
Eardlng the political situation II IS
quite certain that we are IN Tor q pc
rod Of fresh tariff agitation during
the coming autumn. The aggressive
attitude Of Washington towards ran
roads and other corporations IS also
much disi5kSd in financial circles.
owing largely 10 the uncertainty
which IL produces Republican party
sQuabbles also nave an unsettiing IN
EuenCe-
when IT cones to the business sItua-
ton. that is undoubtedly spCtty- He-
dictionary tendencies are observable IN
many directions. and tie trend Of nearly
all commodity prices IS dow inward Con
sumption has been checked by clEn
prices. and here and there are signs OF
overprCdUctiou. notably in the iron
trade whore an orEar-zed restriction OF
pig iron IS IN prospect There Il also
more or less continued cCrtallme.-- IN
the cotton goods Industry. due tC hign
prices and complications arising from
the fluctuations in cotton TIE reaC-
tiUn IN business, however, IS one which
should, ere long. prove beneficial being
more In the nature OF q general read
1uStmenL to a lower price level. which.
when the limit has been reached. viii
prove stimulating and whOsesOue- There
is no doubt that as soon as buyers are
convinced that bedrock is reached, q
fresh rush Of orders viii he received
LAlp NDlAALADuos
Attention IS now being closely rfveted
upon the crop outlook. Wheat prospects
are fer q fun crop at good prices. The
corn crop, however. IS IN many respects
a more desirable crop than wheat. and
the outlook is for a very large acrea &c
Of this grain In cotton the reports OF
damage have been much exaggerated
Probably not more than q third Of the
crop has been planted, and the damage
was cCu5ned 20 comparatively small To-
Callues- Il IS not too late FOR replanting-
ana there IS consequently ample time
1o- recDUplnE all the losses thus far
suffered A large cotton acreage is
practically certain Considerable damage
10 the frult crops has occurred in Ger
tain sections OF the West, but here. too.
the injury was greatly exa -gerate6- and
oller sections OF the country are known
10 possess veTy favorable promise Re
garGlnS the crop situation a a whole
mere IS YET no occasion for uneaSi1ess
me crOD-itlllers- however have had =
most or their opportunities
The above briefly cites an the LDov-,
unfaVora5le features Of couse0uenc.- II
IS true they are reactionarv- b11r -
reaction should be regarded as a n~t-rrai
ana desirable correction OF an abnormal
position The country has been trs.veI-
ln6 TOO last Our markets were out of
gear a period OF read juStue0t wa. a b
soiGJeiy necessary 10 restore prices and
supplies 10 the normal This psacess