The Washington times., 1910-08-21

OF S3.Q0O.00O Colorado and Southern
rounding u per cents by the com
pany 10 banking group This is al.
addluOn 10 the outstanding issue
Wnich has been selling on "a per
cent basis on the exchange. While
me amount Is small and the price
proRa bly, low, the transaction is re-
Baroed significant of improving
conditions, for il, with a recent small
OHerlng Of Boston and Albany / per
cents. marks the first openly repOrl-
ed sale Of bonds by a railway com
pany for some time.
Relaxing Money and Investments
An improving money market, or
heavy accumulation Of funds, arising
from lessened commercial activity, or
any other cause, must in the end work
IN favor cf an Investment market.
There can be no doubt that something
Of this nature was chiefly responsible
for the better inqUiI. IN the bond di-
vision during the week It IS possible
mat the movement may be somewhat
s.s-e1SatUre, If one has IN mind a really
broad and active bond market, with ex-
tensive purchases by Institutions and in
dlvldual investors. and the free offer
ing and ready absorption OF new IS
sues, bat then a start has 70 be made
somewhere in a matter such as this
and IL Is By no means impossible that
such a start has been made now. Il.
OF course. suggests itself 10 many per
sons that trust companies VIII not con-
tent themselves indefinitely with the =
per cent which they are receiving on
their deposits IN banks. when they can
employ some OF this money in the pur-
chase Of bonds netting from 1 TO ~
per cent, or more. on the outlay. And.
OF course, some individuals who have
been thoroughly scared by recent de-
yeIOpmeuts in the stoCk market and
who have. IN consequence, maintained
large sums of money in banks and
trust companies. drawing interest at IL
20 per cent may decide al any time
10 employ this money more probably
in safe securities Doubtless some OF
them have done so already and others
will follow I'm due course
During the week there has been some
slight ameliOratiOn Of the conditions re-
&c utly imposed upon commercial DorToVF-
e-s- The anomalous condition OF The
TO ~ per cent call money rate and the
81 TO f1Z uer cent rate on commercial
paper. stiII continues. but considerable
more paper vas purchased during me
week and sales Of gilt-edged paper BE-
low 8 per cent. particularly such as ma
lures within the year, were by no means
q rarity. Many OF the commercla4 panEsr
nerhaus most OF them. still hold out for
6 per cent. even on the best names but
trust companies bought with decidedly
greater freedom. and frequently at con
CeSSlolS IN price and. IN consequences
a more cheerful sentiment prevailed IT.
mercantile quarters Further relaNa-
tion was noted in the time money mar
lzet. particularly for shOrt-te-m money.
and in a few instances loans carrying.
over the year were negotiated by good
houses on selected security at ~ per
cent but the prevailing rate FOR that
maturity IS ~ per cent, and that was
not Obtaiuabie by every borrower, or on
any but very well selected collateral. /
For these concessions in the money
market. OF course, the heavy accUmula-
ton Of S55.of4.O09 Of surplus reserve in
the clearing house banks was chiefly re-
Sponsible- but IN connection herewith. /
the very moderate borrowing demand
also contributed 4 professional stock
market like the present makes little. II !
any. demand on time funds for the
traders shift quickly and those en- J
gagged in the recent market movements :
were content 10 operate on the basis OF
call loans.
Gold and International Trade
II anything the developments in the
money market have shifted from Jhe
domestic 10 the international situation !
an unusual series Of advances In Lon /
Son discounts. cOincident with a rapid !
recovery in demand sterling exchange |
which ran up nearly I cent in the ;
pound. to 4S660. within the week, makes /
more gold from Europe at this time !
and New York bankers obtained none
n the South African shipment ,rrivinZ /
In England on Monday The amount /
lf gold already purchased, however. +,
about SIS. Geo. is. IN all prcba hiIity. |
sufficient for the legitimate business re-
ruIreueng of the country for the bal 4
3nce OF die year, UnleSS-and this Is I
as pO~Sibility-EuT0D-
forces upon Us the necessity Of export I
n- some gold to Brazil in payment OF /
imports Of coffee. This country gen
orally dnanCes its South American DUr-
-hases Indirectly through Europe Lon
SONS sale Of American stocks on the 4
recent sharp Advance taken with the
fruer English discounts. which has
turned international exchange against !
Is. may. in consequence Of the 1
,ountry's adverse trade balance and the 1
arEe accuu- Uiation Of money at this
center. bring to pass such a result as 4
ar export Of gold by this country 10 i
South America This. doubtless could 1
De checked. but only at the expense Of !!
higher interest rate at this center. (
pr through heavy export shipments OF :
commodities and merchandise. which i
after does not seem possible.
European bankers and financial I
critics have all along insisted tina;
,ur recent imports Of gold were not 1
justified by the international balance, .