The Washington times., 1912-09-01
OF IMPORTANCE
INTENSITY WALL STREET DULLNESS
Week. Temporarily Antagonc Promise Have Vital
tuBuness of High Professional Order Sinks Small Proportion
With Commission H ouses Almost Idle
by JOHN GRANT DATER.
Special Financial Publications

were loaning an aggregate Of $50, 900 900,
larger portion Of this, II is believed, was
put out In this country. A withdrawal
OF Canadian money at this time would
impose considerable additional burdens
on our banks. and the incipient signs of
such Withdrawals, manifested by ship
Jments of $4,000 900 in gold coin to Canada
was much discussed feature of the
money problem Of the interval.
Weakness In Bonds and Notes.
High grade bonds continued under
liquidation. and many new low prices
were established, while short-term notes
were under pressure. Both were attrib-
uted in financial circles to the harden
Ing OF money and to the desire of banks
ana trust companies to keep themselves
In hufd condition in order to meet the
heavy anticipated demand for crop NOV
ing purposes and commercial needs In
the long. dull interval, when money was
drug and rates were extremely low,
banking institutions were extensive buy
ers OF both notes and bonds, as their
purchase promised a more remuneratlve
return than IL the funds were employed
In time loans or commercial paper. But
the desire or necessity of many institu-
uons 10 sell at once has so deprecated
prices that the anticipated gain through
larger interest has been lost, in many
instances, through the shrinkage In the
market values OF the securities
AS already stated, the financial dis
tnct may be making altogether too
much OF the these developments. and
there surely seems a disposition to work
up money scare. In that, probably, is
the safety and the solution of the prob
lem, Tor a speculative bull market in
STOCKS Is unlikely. while any prospects
% l..
liquidation in securities might be forced
II the demands for crop moving and
general business develops as expected is
quite possible, but that should provide
means Tor supplying legitimate needs.
| and money strain which arises ont ~
prosperity possesses none of the terrors
TO commercial borrowers of one that
| arises out OF fear of the boarding of
| hood whatever
General Industry and the Bank State
| ment-
Virtually no change was reported dur
ing the week in the fundamental situ-
alton or basis industries. Bank clear
ances showed further expansion and
gross railway earnings were OF a bet
ter character, while further advances
or impending advances were reported in
practically every metal market, incIud-
Ing iron and its finished products. COP
per. led and tin. The most notable de-
velopment in this quarter, without
doubt, was the heavy sustained orders
for railway supplies and equipment
falling upon the steel market Un-
seasonably cold weather in the North
west at the weeks end quite naturally
impelled some conservatism in the
| cereal markets. but the spring wheat
crop Is virtually made, and though
! corn is a trife late cold weather at this
season usually does little more than to
harden and mature the grain. Cereals
! worked a shade higher, while the ten
dency in cotton was in the contrary
direction. Naturally very great inter-
est attaches to the Government report
on cotton due on Tuesday. which Il is
expected will be favorable.
Wall Street was closed on Saturday
and in consequenc there was no way of
determining the effects of the weekly
bank statement. This was much less
favorable In the matter of cash loss
| and decrease in surplus reserve than
had been anticipated. OF course. the
report, particularly that showing actual
conditions. reflected the heavy Septem-
ber requirements, but the loss OF $12,-
the decrease of $40. 792, $50 in surplus re-
serve, leaving that item only 81, 55S,
$50 above legal requirements, discloses a
banking position which gives no en-
| COuTdSeTleHl OF Dull
stock market at this time. Naturally
some of this money will return speedily
to the banks, but In view of the fact
that New York has already had two
reserve deficiencies this year and the
harvest demand has only started and
bids fair to be the heaviest on record,
1t seems apparent that there is the
greatest necessity for outstanding OF
resources by the financial institutions.
In view Of the weak reserve position
shown by the banks. the Vermont elec-
tions and the Government cotton croI
report, the present week is likely tc
prove one of great interest in Wall
Street, with the chances ver'' much In
favor OF the monetary situation being
the controlling and overshadowing in
II fiuence.