The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-12-04

banks everywhere, and that money
rates must relax still further.
Money Market Relaxation.
The constructive investment or this
country is assuredIy on a sound, basis,
and though merchants and manufactur-
erss and investors generally. may DC
rendered tirnfd and restrained in their
operations b. political and other uncer-
tainties. men grow weary IN time of doing
nothing They also grow weary OF look
ing at heaps Of idle money, and sooner
or later The fact vii dawn upon them
that the great national problems viii
ne solved in some way and that the idle
funds ought TO be put 20 work Il IS
along such tines that markets have al
ways adjusted and righted themselves
IN the past, and it Is along such lines
That the present situation VIII adjust
itself Bearing this in wind, one may
safely consider securities as an invest
ment proposition now despite some I'M
solved problems and sumo future IN
certatuties- The turn of the year viii
assurediy bring easier money and an
Improving bond market.
Although stocks were reactionary
Wall Street was not without some high
y favorable Developments during tina
week The most important Of these
conferred around the money market, anG
this bore upon the international as well
as upon the domestic situation The
reduction Of the Bank OF England dis
count rate from 20 ~ per cent on
Thursday was, without doubt, the
ranking feature Of the entire week IN
money. II was wholly unexpected, COM
ing at a time OK political unSettlemeut
IN. England II Is not generally known.
even In " al Street, that. the reduction
Of the discount rate was due, TO a very
large extent, &c heavy loans made by
New York to London which supplied
that market with funds, and relieved
the pressure upon the bank call money
and open market discounts have fallen
rapidly IN the English capital. the de-
cline being measured by about 1 per
cent n each case, within week or ten
days
Some Favorable Factors
It It quite interesting TO note that the
monetary assistance accorded the Lon
don market has been accomplished with
out IN any way Notwithstanding the To-
cal money market To the contrary.
call money has ruled easy at ~ per
cent. and time funds wero offered with
Increasing Hberality at 4 per cent for
all periods. ranging from sixty days to
six months The market for -saercantile
paper was somewhat more active, due
To increased purchases on the part OF
interiCr institutions. and rates were a
trifie easier ar from : to 6 per cent. as
against 81 to 61z per cent IN the recent
past About the only impeachment TO
stu further relaxation I'm money rates
that any one can now see, rests in the
tendency 81 IN-este.u farmers and grain
operators 20 hold wheat back from the
market IN anticipation Of higher prices
The movement, according TO Western
6dVfces. Is gaining Roadway, and bids
fair 20 ~eaCh large proportions, as K did
last year It explains IN part the be-
lated currency shipments Of the week
In addition 10 the decided improve
ment fl the monetary situation, which
was t-e chiefly favorable feature of the
week. a much more confident note was
sounded concerning the future OF the
basic industry. iron and steel This re-
suited from the conference Of the lead
ing manufacturers on Wednesday, when
a decision was reached that present
prices should be maintained The iron
and steel industry Is. Of course not
EOUd. and cannot be so while the chief
customers. the railroads. are restrained
in their buying, but even II railway rate
advances are deferred and deferred
again. these great corporations so nee
eSSary to the co-nu1ercial life OF the
country. cannot suspend their opera
tons OF even curtan them much for
any long period Of time They must
make necessary repairs and improve
Uents.
C4ooF nrza-S T7r-aasf-0