Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-07-02
cIrEnn UP
IA !. \
Panic an InlpOssibility
Because 1t Is Expected,
Says Boston Commercial


THIS has stcadylng eject on busl-
ness IN general and makes for safety
~ a time when the supply Of capital
IL restricted.
NiOacy and Envcsements.
The call money markc, - the only
real one Just now. There is almost
no demand for time funds. and the
reasons for this condition are quite
plain.
The New York banks have some
So. .O00 or st5.0O9,O0O Of surplus
reserves; they are preparing, NJ IL
perfectly we'll known In financial cir-
clcs against that time In the fall
when there will be very heavy q E
mands on them for crop moving funds
and for whatever demands the Glass
currency bill may make on them.
one OF the provisions OF this bill n
that the reserve city banks VIII be
obliged 90 pay out the major portion
Of their country bank deposits. II
this may he termed boarding the ad-
ministratlon at Washington ~ 20 bo
thanked for a.
For the past ave years or so the
newer countries such as south Africa.
India, South America and Canada
have been taking more and more OF
the worlds gold supply. In this
country capital has been turning away
from the market for stocks and bonds
and going into less liquid forms Of
Investment.
Truly rejecting this state OF Affairs
bonds rallied Ia 1909 after the panic
only half way TO the high point 81
1905. although stock prices we're as
vi unaffected.
since 1909 bonds have enjoyed only
short rallies and on the whole show
a decline. while In 1871 and 1919 the
stock market only regalncd half the
ground lost In 1910. although COM
modify prices kept on soaring. In
the current year commodity and
realty prices hove been alone la show
ing strength or further advance.
The outlook for a return OF Euro
p1an capital to this country In not
very bright. Worldwide conditions
are tending 10 check the outpourlng
OF European capital 10 this country.
fAs we have relied more and more on
the foreign investor In recent years
To finance our business expansion this
Is considered in some quarters as det-
rimente' ~ our future prosperity.
The remedy for this condition. how
ever. is at hand Ia the immense ag-
gregate sum OF small savings In this
country. not included In what cap.
talns OF inance consider the available
| capital.
nix business has 40 far been
! ilnaneed-by mem OF sarge means. By
! institutions and foreign investors. The
institutions. such a. the savings banks
and insurance companies. have col
lected the savings OF the laborlng men
and persons OF email means and a
large portion Of the aggregate sum
has gone 10 finance biz business
OF late years iess and less amounts
from such sourcosi have been going
into bond aud stocks, the bulk being
put into less liquid forms OF invest
ment. FOR example. real estate loans
The change has been made for the
higher return and not because cor.
pOration securities are less satisfac.
tory investments
La fact for the individual, good
bonds are much more satisfactory
Investment than real estate mort
gages. some money spent In educa
tloRal work and tho Issue OF small
denomination bonds will open thi,
great field OF investment to corpora
tons, and when once developed 4
will be unnecessary for. American rail,
-oad aud Industrial enterprises 10 q,
begging for money among the peas
ants OF France.
Igs,seeu' iSelfnx AbrOatl
There II better feeling abroad
Nervousness has not disappeared. bu
calmer mental attitude 10 belni
maintained in financial circles IN tn,
old world
Actual monetary conditions are stil
under the Same influences which havl
prevented the successful hotatlOn 0
loans Investors should begin sool
To realize that the troubles whicl
they anticipated have not happened
They still lack confidence In the ia
turc. however and are afraid tina
something may happen.
Therefore capital In Europe
withheld from the investment mar
kctH How long this condition VII
continue cannot be- fOretold.
The recent Balkan yictors are quar-
reling among themselves aud Il ma
yet become necessary for some OF ia
larger powers TO intervene and r.
store peace. Such an event NATURAL
would be cause for drawing the purse
strings stu tighter.
The visit OF President POlncaire {
France To England and tho enthui
lastic reception accorded him, ind
, cate that the governments OF thei
. two nations are In complete harmon
, In speech tho head OF the Frenc
. nation particularly emphasizes th.
; point
The political relations OF Russ
, with both England and France Al
known TO be most friendly and VIII
. these three great powers 50 close
= lalliod, Il seems almost absurd TO sal
pose that any other power on con
! blnntion OF powers VIII seek Go n
\ up strife.
) u Is for the best interests Of q
4 Balkan nations that they demObilt
: and return 10 peaceful pursuits.
viii take them a long time 10 rec
perate, even with the anancial assis
J. ance Of France, which ~ the on