The Washington times., 1911-10-08
CONDITIONS ARE UNSATISFACTORY,
WITH NO SIGNS OF IMPROVEMENT
Conditions That Have Brought
Liquidation Are the Time When
Removed
JOHN GRANT DATER,
Special Financial Munsey Publicatons

porations, which may be forced to re-
duce their scale Of disbursements,
prices have already discounted much II
not all the effects Of such an action.
Inent purchases can be, and they are
being made. In fact. a situation like
the present has never failed TO stirru-
late a bond market, and during the
week, a distinct Improvement was re-
ported in high-grade Investment issues,
such as give an assurance OF the conf
pletu safety OF the principal.
The Turco-Italian War
OF the Turco-Italian war it may be
said that the markets of the world ap-
rear to have taken the measure Of the
development and to have appraised 1t
as a matter of very trifiing concern. 1t
Is interesting to note that on Monday
last British consols and French rentes
improved, while Turkish bonds actually
moved up two points. This was fol-
lowed by an even more significant de-
velopment later in the week In the dis
tinct easing of market discounts at
practically all European money centers
but Paris, which market was directly
concerned with its seml-fnonthly settle
ment. 1t is true that the Banks Of
Germany, France, and England all
made poor reports during the week,
showing furtner losses III gOl0 ana eA-
pansions in note issues and loans, show
ing that nervousness and a boarding Of
money abroad continues to some extent.
still, 1t seems as though a corner had
beer turned in the credit strain abroad,
and toward that result this country has
assisted materially. Not only have We
bought back large quantities Of our
securities. but the country has loaned
extensively both TO Paris and Berlin,
shipping to the former city during the
week 100000 additional gold, which
makes g, 500, 900 sent forward on the pres
ent movement. In the closing days of
the week demand sterling advanced
sharply, and this may foreshadow still
further gold exports. but with the pros
poets of a quiet business before us and
In the absence OF an active speculative
security market We can spare the specie
readily, and 1t is profitable for the
banks to do so.
A Hopeful Business Note
While Wall Street continues blue and
depressed. taking heed of little aside
from the unfavorable side of current
happenings and deeply concerned with
rumors OF impending litigation against
the industrial trusts, and with alleged
friction between Mr.. Morgan and Mr.
Frick and the like the great industries
OF the country are moving forward
AS Duu tNCNISN says lOudO
In spite of war, industrial disputes,
and other influences tending to impair
confidence and retard enterprise, the
movement of trade continues large al
though still under producing capacity,
and the recent gradual Improvement is
maintained" This authority notes that
bank clearances gained 1915 per cent
during September over a year ago that
the first week in October also shows ex-
panding clearings, that railway gross
earnings for the first three weeks Of
September show slight gain over a.
and that export shipments are well
maintained.
Among the favorable developments of
the week the most important, no doubt,
was the Government report on cotton,
indicating a condition for October Of
Ill. or nearly 5 per cent above the ten
year average for this season This
gives an indicated yield of 1855, 900
bales compared with a promise Of H.
9lS,OO0 month ago. and IL frost holds
off the yield may be larger AS a result
spot cotton broke to 10 cents a pound,
a figure not attained in about two years,
and highly cheerful sentiments are
heard from the textile industry. An
abundant cotton crop will assuredly
greatly assist our credit position abroad
and pave the way to recovery when
politicians, as Mr.. Hill expressively
dancing"
The Bank Statement
No change whatever has occurred in
the local money market, and none now
seems likely. In fact, money brokers
report that time funds are practically
unlendable. Commission houses are
satisfied to use the call money market
for the major portion of the present
limited requirements. The bank state
ment today reflected a rather heavier
loss In cash than had been ANTICIPATED,
amounting In the statement Of actual
conditions to $7.329,0O0. Loans in the
actual statement expanded 81, 165, 900, de-
posits decreased s., T33, 900, and a loss
OF T,O6.65O was reported in surplus re-
serve. The SURPLUS in the actual state
ment Is ~, ,3lS,2 200, and the statement of
averages {l5, 42,500 above legal require
ments, which is unusually large for the
middle OF october, and it will undoubt-
edly prove ample for all legitimate
needs.