Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-11-12
SAYS Practise OF Looming on Nom
Liquid Collateral should Cease
Among Bankers.

The local financial situation con-
tlnnes this week without material
change, with tho demand for money
good. although tho rates of interest
are ruling | per cent higher this year
than last There has been a slight de-
crease in the aggregate OF deposits.
but this week they are on the
increase again The coming disburse-
ment of beet moneys from the local
sugar companies will be welcomed by
many growers and will relieve any
s,ringency that may be felt. The con-
tinuance of mild. open fall weather
admits of corresponding contln-
uance Of building operations, which
KEEPS mechanics busy and payrolls
going. The bank clearings are still
tagging behind. but the difference is
growing less and less.
HENRY CLEWS' LETTER.
Henry clews in this weeks circular
letter says:
"An unWelcomc feature Is the con-
t!nued excess of, loans over deposits,
indicating that the banks are lending
upon their capital and suris-L-. This
weakness may disappear in due time.
but 1t Is a condition which requires
watching, being symptom OF over
expansion of credit. Western bankers
are less confident of escaping IL
money squeeze than three or four
weeks ago. and II Is quite possible that
they may be obliged to call upon New
York moro freely for their balances.
stiff rates for money may be expected
for balance OF the year. The govern
ment has also been Withdrawing funds
quite freely. the result being that we
may expect II continuance OF low
bank reserves at least until funds be-
gin to return from the interior. Tho
only real cure Is a further reduction
IN loans: and the higher rates for
money recently prevailing suggest a
tendency in that direction. There Is
however, no reason for serious concern
regarding the money market, the prob
ability being that moderate liuuida-
ton and steady contraction of
loans for few weeks would probably
rectify the situation Conditions abroad
are not unsnvorable to this center ana
there has been considerable placing of
American finance bills abroad BY bor-
rowers Of the highest standing. For
some. time past there has been
S'sON'hS tSipNhSs dIIloHb inc DafkS
to loan upon non-liquid collateral,
and this is practise that should be
promptly discouraged.
IN tho general business situa-
ton there Is little change. Confidence
has received considerable stimulus from
the fact that the farmers are having
another good Year. but in nearly ali
departments of industry there is a
spirit Of hesitationwhi still keeps the
volume of business below u year ago,
The&1uestion of cost continues TO be
the great problem In all lines of bust
NESS. not only among consumers, but
equally with producers and distrlbu-
tors. Many staple articles of COM
merce have shown Il declining tendency
which Is hopeful. and suggests that the
country Is on the way to readjust-
ment. Declining prices do not usually
stimulate business until It Is felt a
settled level has been reached AS soon
as this Is realized we may look for
more activity in trade. There is already
result of the reimbursement accomplished
there. Cotton goods also have been
moving more freely for similar reasons.
Commodities prices are showing q de-
cllning tendency which should be en-
Outraged. as that Is the surest way of
restoring cqullibriums and reducing the
cost of living. which IS the basis of
much present unrest aud depression"
1- - HARDWARE.
.11lrgs. :
The hardware trade reports sales as
Keeping up fairly we'll. but perhaps
lighter than anticipated The goods
being sold are mostly staples. such as
stoves and stove furniture. house fur
nishing goods. skates, guns, ammuni-
tIon. etc. all of which are In fair de-
lnnnd. Substantial orders are being
received for spring delivery, which In
dlcates Il good business for the early
months of the year. The market for
heavy mining machinery Is improving.
LUMBER.
The lumber trade reports the only
business doing is that of the retailers
in supplying stock for building opera
tons which, arc able to be continued at
this late date In the year because Of