The Birmingham age-herald., 1913-06-18

This great movement of currency to
New York would 5, EN- to imply that there
is some mistake In the assertions made
in other parts of the country to the ef-
feet that business continues TO be very
good. and whatever may be the case on
the Atlantic coast nothing but undimin-
'shed prosperity prevails elsewhere. For
| II business were Of such high pressure
as was characteristic of Ii last fall, the
chances are that there would be profit
able employment for currency In all parts
Of the country. There Is no other inter-
pretation made possible by experience ot
the movement 0f currency to this city
than that there has been some slack
ening of business in, many parts of the
country.
Fundamentally Sound
This slackenins however, is not of the
| KIND 90 cause any reasonable apprehen-
sion. 1t is thought here to be timely.
| Business men are no. venturing above
their reasonable resources. They are
steering pretty close TO the wind. They
are not running into debt nor are there
any signs of speculative activities In any
lines of trade. For this reason business
Is in good shape to meet any exigencies,
especially of the kind which careful bus-
ness men and farseeng bankers now
! think possible, although not probable, IL
. the fall
| The National City bank has made no
official explanation of its action in lend-
| ing SOO0,O00 in one day through the dis
count of commercial paper in making a
short time loan and also call loans. II
this We're done as a test, however. OF
| morey market conditions. and especially
OF that department of the money market
which call loans represent it would seem
instantly to have shown that the securi-
ties market does not need or want much
| !, I
Notwithstanding the recent excitements
of the New York Stock Exchange, there
is really little or no speculative activity
| in the country, at least in securities.
Bankers today informed the present writ
| er that they would be very glad at this
time to lend money upon call for practic-
ally what they can get for it. In other
words. the plethora of money in New
York is so great that bankers are prac-
tically, or in effect. begging those who
are accustomed to borrow funds upon call
with collateral security to make applica-
tions for loans. They are begging to
lend. They do not have to turn deaf
ear to brokers or to operators in the
securities market who ask for accommo-
dations. Instead i. is willing ear.
The demonstration, apparently, has been
made that there is still plenty of money
in the United States and that it is so
plentiful that the banks of New York
city have begun to cut under the estao-
lished rate of interest so that they NAV
in that way tempt those who in the
past have been borrowers again to seek
loans. So far as loans upon collateral
security payable upon call are concerned
this lowering or cutting of established
rates seems to have been without much
avail.
The bankers of the United States as A
whole appear TO be in peculiar position
They have much idle money; their re
serves are far above the legal line: they
are. therefore, in that respect, very strong
and yet apparently they are not earn
ing as much money as they would be
glad to do. And they are also apparently
steadily nursing their reserves and their
resources. They must be doing that as
sort of anticipatory or cautionary mea-
sure.