The Bridgeport evening farmer., 1913-08-16
THE FINANCIAL SITUATION

ETay1or, Livingston & Co.,, Bridge port Branch. 30 P. O. Arcade, E. l.. Chapman, Manager.1
 Clear evidence has been displayed this week of increased participation Tn the market by outside interests. Large banking influence, too, has been aJr- raigned on the constructive side and further progress has been shown by the price level in the upward move ment that began about the middle of June. This fmprove1nent has evinced itself in the direct face of concededIy unfayora.ble reports of conditions in the corn belt-an influence that, if it were not sufficiently counteracted, could hardly have failed to cause some substantial degree of liquidation by security holders. We believe it should be kept in mind. however, that the corn crop itself, considered in the aggregate is stiII not d poor one. Par ticuIar states as, for instance, Kansas and Oklahoma and Nebraska, have suffered great loss in this which is one Of their greatest sources of new wealth But the fact remains that the Governments estimate of 2,60O. .O0o,- 900 bushe3s even if 1t should have to be further sealed down would still represent more than an average crop. TzIss showing is merely poor by reason of comparison with last years bump CT harvest It is important, too, to remember that we have already gath cred a record marking winter wheat yield. which has proven large enough to offset a concededIy poor start in spring wheat Thus the wheat crop this year will, if we combine the win ter and spring varieties, be found very c1ose to the hfgh-record mark. The cotton outlook also is satisfactory. Taken as q whole, the crop outlook cannot be fairly considered otherwise than satisfactory.
 So far as the advance in the Amer jean markets Is concerned, the date of Improvement must with entire frank ness be aScribed to the announcement by Secretary McAdoo in June that he was prepared to furnish aemer gency banknote circulation up to $500, 0,o00,-| 900 to such bankssas would qualify with collateral under the law. The effect of this announcement was en-I tire1y sentimental, for so far as we are aware no important application for emergency circulation has been made But the announcements, new erthe1es was effective since 1t con- tained the strong intimation to banks that they must not charge high rates of interest until after they had fully exercised their note circulation privi-I 1ege.
 The secretaryS announcement action toward easier conditions in money circles. The Secretary has since then announced his intention to deposit $50, ,00o, 900 or more in public funds in the banks of the Western and Southern agricultural section at 2 Der cent These deposits will cor reSpondfngly reduce the demands up- on New York for crop moving funds and have already relieved the situa- ton at home.
 AEeanphl2e. trade and industry at home are clearly recovering from the restriction Imposed upon them by the pruspecfsxe changes in the tariff and by the general pc1icy pursued by the banks in curtafHng credits to mer- chants and-others to actual necessities and rsfusang to loan funds for any kind of speculation or expansion. The tariff win soon be placed on theI @thtute books and American ner- chants and manufacturers may be de- pended upon to adjust themselves as pwemptzy and as effectively as possible to the new underlying conditions 1 There seems a continued note of eheerfufness in financial, mercantile and industrial circles.