The Vinita daily chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1902-1913, 1911-02-04

i6iSl1ra IS xeEpsl1eo r. E1c1 p1@1-
omen& za security prices. commercial
failures and pznicx-- TIE study :
bzsed rvoa the nizetzenyezr period.
lsse-1sss. % Car e data for this persod
I il zvziizh'e Ths material for the
large humber Of tables found n the
Tosune wss. r. par, secured b. the
.commizslon directly from clearing
ho-se sssoriasioas. from individual
bakers ard from Dublie oaeials- i
rzs aiso. in part, compiled from gsT-
eminent reports snd financial journals.
Ia lis study the sufhoF has BOXED
fcE the expression q seasonal Farizr
tons IN the demand for money and
capital IL such market data - interest,"
rates. bank Icans, deposits, ard re-
serves. domestic exchange rates &
Interior currency shipments. foreign
exchange rates ard the movement Of
gold. amounts Of money In circulation.
and cIearings Hia method of using
this data has been 70 tabrlate the hg-
|ureg themselves and also to construct
gAn index number for each figure. Then
for the period a. a whole be has made.
frat, simple average Of the figures
themselves. aud second. a simple aver
age Of the index numbers,
Professor Kemmerer considers IN
turn the changes In the demand for
m0neyed capital III New York, Chr
Icago, St. Louis. New Orleans. and San
Francssco. Az the best available
|criteria Of this demand he has select
ed interest rates and the ratios Of bank
bank reserves to deposits from 1890
10 1905. a study Of the data for New
York City leads the author to the con-
lclusion that there are five periods in
New York's money market.
First. throughout January there is a
rapid decline in the relative demand
for money, making the last part Of
January and the fore part Of February
Ia time OF very cheap money This
easing up" Professor Kemmerer
ststes, is due 10 the fact that the crop
moving remand for money in the west
and south has spent It's force. The
cash is flowing back In New York City.
Among other causes he mentions the
natural reaction after the heavy strain
on the money market incident to Jam
luary (. settlements.
The author puts the beginning Of
the second period at about the middle
OF February. the relative demand for
money advancing rapidly to high
level and maintaining II through he
fore part Of April The cause Of this
upward movement he finds IN the en-
Icouragement To investment given by
1.-THE low interest rates and the high re-
serves Of the former period. A sec
ond reason Is to be found in the In
crease in certain lines Of trade activity
which normally takes place at about
this time OF the year. The Great
Lakes. the Mississippi river, and other
finland waterways are opened to traffic
during this period Railroad traffic
/ is released from the incubus Of cold
weather and snow"
The third important seasonal move
ment. according to Professor Kemmer-
er, Is a rapid decline from about the
middle Of April, ending with very
weak money market in June and July.
These are the hot months Of the sum
mer, comprising the vacation period
and the period before the great crop
movements OF the fall.
The fourth period the author dates
from the first week IN August when
call rates begin their upward move
ment and when bank reserves, both
in amount and in percentage to de-
posits. begin their decline The money
market continues to tighten until about
the lst Of October The principal cause
ofthe increasing demand for moneyed
capital during this period IS the call