Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-06-19

/ movement can hardly fail to at once
assume active momentum. Railroads
for instance, have been forced to prr
sue a most conservative policy in Dllr
| chasing supplies for .ipkeeD and 70
! pairs and Lave practically done moth
ing in the way of new expansion
This was largely the result of their
inability to secure capital on terms
their managers believed to be deslr-
able. There has, however. recently
been a marked improvement in the
investment demand for new securi-
ties. Our railroads are again able to
secure the new capital they require
on sufficiently favorable terms to
justify them in proceeding on normal
lines. and their purchases of steel
rails and construction material gen
orally promise in the near future to
become a distinct stimulus in the
great metal industry.
Even should the annual demand for
funds to move the crops prove a tax
on tie present volume of our banking
resources the money situation is still
protected by the balances that are
now available abroad, but which have
not yet assumed the form of gold inn
ports because of the abundance of
unemployed money here at home.
There has been no inducement, there.
fore. to bring gold to this country,
but our forign exchanges are in such
a favorable condition that any ad.
vance of moment in the rental rates
for money on this side would prompt.
~ attract the precious metal. Official
figures are now available showing the
activity with which our banks have
been investing. in securities, the
funds for which they could not find
profitable use in their loans and dis.
counts A compilation, which in
cludes nineteen leading national
banks of New York, shows their hold
ings of securities to have increased
$2S,OOO.0OO since the bank call of
March 7. and $52.0OO,OOO since the
corresponding call year ago. Pre-
sumably this same situation has been
going on among the other banks and
other financial institutions both in
New York and throughout the coun-
try. These accumulations of securi-
ties obviously explain the strength
shown in the recurity markets during
the dull times that marked the earlier
months of the year. With the con-
tinued prospects for redundancy of
money there exists no inducement for
liquidation of any substantial part of
these securities that the banks have
accumulated, and any additional buy
ing movement will, therefore, find the
floating supplies of securities CORE
spondingly decreased.
The recent heavy sales of Amer.
lean securities abroad, including
those introduced on the French mar.
ket. are further guarantee of con-
tinued ease in the money situation.
The relative volume c1 our imports
and exports of merchandise has OF
late been creating an increasingly
favorable balance which the credits
established by the foreign purchases
OF our securities have further fcrti-
fled. For the month of May our ex.
ports of merchandise exceeded or
imports by $22,5S3,525, and for the
eleven months that have been com
pleted of the fiscal year the excess
exceeds a half billion dollars, THIS
is an increase Of 1921, 1899 in ex-
cess exports over the corresponding
months of the preceding fiscal year
1t will thus be appreciated that We
have distinct improvement in our
foreign trade balance which bids fair
to make still further progress, as the
tendency of the market prices of our
farm products to an export basis
promises a much larger outward
of our grains, provisions
and other export items. not forgetting
the foreign movement of manufac-
lures which will also naturally follow |
the readjustment of prices.
The market from now on promises
to continue favorable one for trad !
ers. with fluctuations sufficiently &C.
tive to enable alert and well-informed |
operators to secure frequent and sub
profits.
HENRY CLEWS.