New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-03
MUST GO IT ALONE
Assistance from Europe Not
Expected This Year.

he view tdhtD Ol lIdINioi anu SNS'''
market affairs by Spencer Trask CO.
is set forth In the following from their
letter:
1T is not an infrequent occurrence 10
witness marked Improvement in senti-
ment in July, the change being usually
produced or at least facilitated. by a
clearer perception OF the outcome OF the
crops.
TO what extent this factor may have
helped the rise that has taken place both
in bonds and stocks in the last few weeks
it is difficult TO say. In our opinion the
advance has been due very largely l"
wider recognition and a more general APP
probation OF what our banks, particularly
what our New York banking institutions
have done 10 prepare for the ineNItdple
demand for cash which develops each ran
The first move was made early in the
spring. and by gradual steps Drought up
the percentage of reserves OF the Ne"
| York banks and trust companies by the
end Of June to the highest point reached
| I'm nearly year. with the exception ol
! January, when money would hatuid"3
accumulate at this centre after the year
| end dividend and interest disbursements.
These preparations were not completed
! without certain amount of forced hqui-
| dation in securities. and 10y the shutting
down of credits in all but the most de
serving cases. We feel. however, that
| tho results have fully justified the means,
because we are now able 10 face the au-
tumn demands with relative composure.
| AS we have pointed out in previous let
| tiers. We must expect 10 60 il practically
alone this year as Europe IL too much
occupied with her own necessities 10 offer
us help on any extensive scale. 1t must
be remembered that. while Germany has
vastly improved her financial position,
| the end OF September settlement in Berlin
is generally 4 trying one and the pros
! poets are il will be no less so this year.
| Egypt will also be requiring an unknown
| amount OF gold. depending upon her cot
| ton crop. while political conditions in the
| Balkans. where France has very heavy
| interests. are So deplorable and 50 cha
otto that we doubt if money shows any
ease I'm Paris during the remainder of the
year. This would leave us only England
| 60 turn to. and while she has already
amount on finance bills. We believe her
| own needs and the many new ISSUES
awaiting only the frst signal of monetary
ease Will engage most of her loanaDIe
funds In these circumstances our banks
deserve the highest praise for their fore
sight in the measures taken for the
financing OF our crops
While opinion is pretty evenly divided
as 10 the course of the stock markets In
the immediate future. the consensus OF
opinion is that the advance in bonds VIII
hold. because ii is predcatcd on IA SOUND
| investment position. As we torecasted In
our last letter. II il the high grade bonds
that have felt the fun force Of the Inn
provement The only high grade bonds
that have shown any pronounced TAIL are
| government bonds, the IS having ialieii
! to 81 and the Panama s. TO ~. II Is stated
| that the authorities at Washington are
attributing the decline to manipulation Dy
| the New York banks. 1t Is nothing short
of amazing 10 have the trouble laid In
that quarter and II is to be hoped thh'
| the New York banks VIII take prompt
steps to demonstrate the injustice OF the
| accusation. the more 50 As the unthihh-
ing part of the community is usually only
too ready 10 accept as justified any at
| tack that is leveiled at them.
! AS matter Of fact, were IT not loi
! their circulation privileges. the = should
| be selling - points lower at present.
based on repayment IL twenty years or
~ points lower on an irredeemdble basis
| compared with other government bonds
Of high grade. Is II. then TO be wondered
at that particularly the 2s should be eX-
tremely sensitive to any rumors affecting
tbe specjal privileges which alone justify
| th.Lr snlIing anNM hELe MeAI pAr.