The Washington times., 1912-07-21

investment bonds in this market, then
too. the autumn money market Is pre-.
SentnE n,,s some problems the % WORKING n,ss out
Although the depleted bank reserves
were made good, the accomplishment
OF this by a shifting of accounts rather
than an inflow OF cash, leads many TO
believe that lawful money holdings are
none too abundant at this point on the
eve OF the harvest demand. What has
centered attention on the banking posi-
tion, also. is the Comptroller Of the Cur
rency's report. under the call for the
June II. This showed a tremendous in
fiation Of loans and deposits within the
year. loans expanding $343, ,065, 644 and
deposit liabilities increasing $347, 470,006.
actually decreased M,12S,MI. The re-
serve position of the banks through
out the country Is shown to be consid-
orably under that Of year ago, and
this with good crops indicates that an
autumn pinch 10 likely. and one would
be inevitable IL the stock market should
by any chance develop activity.
Consols and Foreign Complications.
variation was worked into the
news of the week by developments
abroad. Of which two attracted more
than passing notice from financial in
/ terests. The first was the wholly un-
precedented decline, since the Ameri-
| can Revolution or the Napoleonic
wars, Of British consols, which estab-
lished new low records on four sue
cessive days, finally touching "A on
Friday. the lowest price in eighty-six
years. for not since 1895 has the
worlds premier security" sold at as
low q figure. The other matter was
the alleged repulse of the Italian feet
in the Dardanelles, which was followed
by the reported closing OF the Black
Sea to the worlds commerce by Tur-
| key. On the theory that this would
shut out the wheat from the Danubian
| provinces, cereals advanced sharply
here and state funds declined abroad
through fears of political complica-
tveness of markets everywhere, for
full confirmation Of the reports were
| lacking.
Although the break in consols. which
| was accentuated by the Turco-Italian
rumors. can only affect us indirectly,
| II at all, the continued liquidation in
London has Influenced an uneasy feel.
| ing in foreign banking circles, and
| ent reports that consols are being sold
by the English bankers and fiduciary
institutions to provide the means for
carrying unstable securities. taking
in recent unsuccessful syndicate opera
tions. The possibility Of the liquida-
| ton extending to other securities. in
cluding our own held in Great Britain
| is a matter which Is receiving atten-
| ton. Dealers in capital and credit are
much puzzled by the aspect of the In
| ternational financial situation, arising
| out of the decline in consols and gilt
edged British securities. and the heavi.
ness Of the local investment market
| is associated with the matter. for un.
| derlying the declines appears to bt
the depreciation of gold. social unrest
the high cost Of living and the work
| ings OF other great economic forces.
Our Huge Foreign Business.
Another puztling feature OF the inter
national situation is the manner ir
which foreign exchange is ruling agains
this country, despite our heavy credi
balance on merchandise shipments. Il
| is difficult to fathom the movements
for at the same time that the Londor
cables insist that America is borrowing
on finance bills in that market, demand
for sterling has again advanced to thu
gold exporting point and small ship
| ment Of the yellow metal to Argentine
was announced during the week. Fl
nance bills are always drawn by Ameri
can bankers at this season of the yea
in the expedition Of covering them
when the agricultural products ar
shipped abroad, but the operation or
iidinarily results in depressing exchange
rule against us. This would seem to in
dicate that the credit balance is NOR,
than offset by other operations, such a!
our foreign borrowing or by th'
amounts of gold deported or expended
by American tourists and the like.
The foreign trade statement for June
completed the figures for the fiscs