Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-09-23

%tribltton are without adequate supplies Of merchan.
disc on hand, shelves Of retailers are not filled with
their normal disposition among consumers, also. to
hold back from purchases with the view of obtaining
better results. Reaction from these Influences sug.
gests a period of mercantile enthusiasm that may or
may not prove to be fairly permanent. For the mo-
ment, however, it chould have a stimulating influence
on the traffic statements Of our great transportation
systems, since the improved volume Of traffic will
consist very largely OF the higher classes of freight.
which pay correspondingly high rates.
Advices from Washington assert that the new
banking and currency bill has 4 very favorable pros
pect of becoming a law at the current extraordinary
session Of congress. If It should fail in this 1t will
very likely be on the statute books early in the regu-
lar session of congress, which convenes in December.
There is a feature In this connection that Is of par
ticular interest In Stock Exchange circles, referring
to the possible greater stability that will accrue to
money artes when the law comes, into successful
operation. For many years one of the main infu-
ences against more active purchases of American
securities by foreign investors has been the fear OF
the periodical excessively high money rates, which
usually shakes confidence in such Investments. With
their central banks in control Of the banking situa.
ton in Europe financial interests there have become
used to a stable rate. They cannot understand the
high rates for call money that have 80 frequently
been found necessary on this side Of the water. 1t
is tO(be hoped that the operation Of the new law
will effectively prevent a recurrence of these abnor-
NAL rates. |% "" '''"
The Immediate money situation promises some
degree, Of frmness, though there is no prospect OF
acute stringency. The greater volume of trade will
require a corresponding volume of banking accommo-
dation. The crop demands are now nearly at their
height, and the fact that the banks in the agricultural
sections of the country are not showing greater en-
thusiasln in their applications for deposits of pubic
funds in accordance with the offer of the treasury
department to distribute $50, 100000 are suggestive of
a continued demand upon the banks in this and other
large centers for funds without important change
from the practice of previous years. The necessity
of purchasing government bonds as a part of the
security to be furnished for the treasury funds does
not seem to freely appeal to the interior banks.
They see in the transaction a possible loss when they
shall find it necessary to sell the bonds that no longer
will be needed for the specific purpose for which they
would have to be purchased. Furthermore, the re-
strictions imposed by the treasury rules on the char
acter of commercial paper to be deposited by the
banks operate as an additional handicap against the
more, general acceptance of the treasury's offer.
Thus, if there are to be the usual demands upon the
banks it becomes a fact that can hardly fail to be
reflected in money raes, though, as he has alread!
intimated, Mr.. Clews does not look for the develop
1nent Of acute stringency. @&