The Washington times., 1911-01-08
lBuyq Hope of BunsFoveigners Take Hopeful NeeD of Al
SLOW PROGRESS IN READJUSTMENT
WITHOUT EFFORT TO FORCE MATTERS
Careful Review Of Factors That Market
Bankers Pleased Heavy Buying of Bonds-Gays Optimism
. e. Materially
'-- BY JOHN GRANT DATER,
specia Financial Representative Publicati

1909. and a gain of 1.s per cent as
compared with the great commercial
year, 1906.
Bearing on the same point Judge
Cary points out in his recent inter-
view, that the Steel Corporations
business in ingots and rails for the
last year was actually better than in
1903. Another record of the year
which is excellent and which is
highly important in its bearing
on the future, is that of gold
production. While the total output for
1910 in the United States. amounting
to $96,055,000 is $3,61S,4 400 less than
the preceding year, the production for
the entire world is estimated at $454,-
$4,000, or $452,100 greater than that
OF the preceding year. When 1t en-
ters the channels Of trade and COM
merce, gold, of course, knows no ma
tionality, and the fact that the out
put of the yellow metal is being main
tained means a great deal for the fu-
ture of industry everywhere.
Gold and Relaxing Money.
For some reason or other Wall
Street, which used to lay great stress
upon the gold production in preach
ing the doctrine of higher prices,
seems, OF late, to overlook that feat
ure entirely, but the maintenance of
and this Is a matter of which we Will
doubtless hear more during the COM
ing year. The money market, quite
naturally. has reflected, during the
week, some of the influences of the
year end disbursements. In this par
ticular II should be borne in mind
that not all the huge sum paid in
dividends and interest, computed this
year at, s226, 200. 900, is disbursed on
the first business day of the year. 1t
is distributed over the entire month.
This explains why call money has
been maintained at rather stiff rate
during the week, until the closing day,
while time money and commercial paper
have shown a marked relaxation. Call
money started of at per cent, and
ruled at about 5 per cent until Friday,
when the rate was offered down to "a
per cent, apparently in connection with
the professional stock market move
ment. The average rate of the week
was about l per cent higher than dur
ing the preceding week, but that this
is probably of a temporary character
is indicated by rather free offerings of
six months money at 3% to per cent
for all maturities, and actual loans were
made for the June maturity at the
lower rate. Some commercial paper,
best names, was sold as low as 4 per
cent. though to AZ per cent is the
quoted rate. In fact, the only unfavor-
able development in money was a sharp
advance in sterling exchange, follow
ing gold shipments and higher discounts
In London.
Banking Developments.
While the closing of the Carnegie
Trust Company today. following closely
upon the unpleasant disclosures in con-
nection with the Northern Bank and the
Washington Savings Bank, was really
no surprise to the banking interests ia
miliar with the record of this institu-
ton: it scarcely constituted a bull argu-
ment, and the late upbidding of stocks
coincideQt with the failure was much
condemned in conservative circles, for II
adds an air of unreality to the closing
movement of the week. 1t is not thought
likely, however, that these three un-
pleasant banking developments in re-
cent days will influence runs and with
drawals on other institutions, which is
really the only way in which the matter
could affect the general banking posi-
ton.
The bank statement of the day, built
upon averages, did not reflect very
much of the return flow of January
money, and undoubtedly the best index
of the banking position is found on this
occasion in the statement showing ac-
tual conditions. Under this the surplus
reserve increased 81, ,5S3, 900, a gain very
much in excess of the total surplus re-
serve, $9,915,425, shown in the average
statement There was an actual cash
gain of $40, ,24S, 500, a reduction of loans OF
81 631, 300, and decrease of S9,257, 800 in
deposit liabilities. The average state
ment is not as favorable, but the actual
showing will reflect in that report next
week, and all the figures indicate re-
taxation in money, unless London should
draw gold, which is only remote posi-