The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1911-02-10

made upon the New York City banks
in the west and south for cash needed
for crop-moying purposes"
"The last seasonal period in the
New York market dates from about the
first week in October to the opening
of the new year. During this period
the relative demand for moneyed cap
ital exhibits many minor fluctuations,
but remains at substantially the high
level reached the fore part of Octo-
ber."
The author turns from his study of
seasonal virations in the demand for
moneyed capital in certain representa-
tive cities to a consideration of the
demand for money in one section as
compared with the demand in another
In making this investigation he has
made use of the rates of domestic ex-
change between the principal cities
and of the movements of cash between
the various sections of the country.
The figures for currency receipts and
shipments are based upon replies re-
ceived to a circular letter of inquiry
sent out through the Office of the comp
troller of the currency to the managers
of the clearing houses. These figures
are for the years 1905 to 1908, inclu-
sive.
AS between Chicago and the eastern
states Professor Kemmerer finds that
throughout January money in Chicago
relative to that in New York is cheap.
Exchange rates on New York are high
and there is considerable movement
of cash from Chicago to the eastern
states particularly to New York City,
where it can at least earn the 2 per
cent paid by banks on bankers bal
ances. From the last of January to
the fore part of March the demand for
money in Chicago relative to that in
New York rapidly rises, due to the
anticipated and actual opening of nav
igation on the Great Lakes and to the
spring needs of the western farmers
Then comes a decline in Chicago's
demand from early in March until late
in May, the demand being compare
lively small from then until the fore
part of July. About the 1st of July the
relative demand for money in Chicago
begins to rise, advancing rapidly until
early in September, and then maintain.
ing high level until the fore part of !,
The average of the report
ed receipts Of cash by Chicago banks
from eastern banks rose from $2,500,-
600 in June to S2,704,000 in July, ST.
$4,000 in August, $11, 1,7S9, 900 in Sep
tember, and $21, 1,943,000 in October.
During the last six or eight weeks of
the year the crop-moving demand hav-
ing to a large extent subsided the rel
ative demand for money is stronger
in New York City than in Chicago.
Exchange rates in Chicago on New
York City rise, and cash moves east
ward
After having determined the degree
and extent of the relative demand for
money and moneyed capital, the author
next considers seasonal variations in
the absolute supply of money, with
the object of discovering to what ex-
tent, if any, the supply of money in
varies during the seasons
in response to seasonal changes in the
demand. The various kinds of money
in circulation he groups under two
headings, Presumably elastic money
gold (including gold certificates)
and bank notes, and Presumably in
elastic money"-United States notes.
Treasury notes of 1890, and silver.
nickel, and copper coin, money whose
amount in circulation is determined di-
rectly by the government.
The figures show larger deposits of
gold bullion at the mints during the
season. This is simply
a fortunate coincidence, however, de-
pendent, the author bellies, on the con-
ditions surrounding the production of
gold. The national bank-note circula-
ton does not, in Professor Kemmerers
opinion, exhibit any appreciable sea-
sonal elasticity. The increase in cir
which takes place normally
from year to year, does, however, take
place in the fall and early winter.
Banks intending to increase their. cir
apparently postpone doing so
until the crop-moving season ap-
proaches. Professor Kemmerer, how
ever, finds no evidence of contraction
when the crop-moving demands are
over.
Deposit currency, or check circula-
ton, as shown by the bank clearings,
does, however in the opinion of the
author, exhibit high degree of elastic