The sun., 1916-12-11
TRADE CONDITIONS SOUND
Actual Strength in Banking
Situation Of Country More
Fully Realized.

erclsing their greatest talents to accumu-
late securities at lower prices. that II 10
not surprising the larger interests In the
financial district are satisfied the upward
course Of our industries and our invest
ment and speculative issues has not yet
u It's full course. Conditions govern
ing the actual worth Of American securi-
ties never before have been stronger.
Potential values have developed into ac-
tual worth and equities possess a valus
which two years g would not have
been conceivable.
Apprehension in Wall Street q week
ago over the position Of the money mar
ket has given way to confidence in the
future OF that market. Broader consid-
erations Of h actual strength of the
banking situation in this country have
developed, and the bearing Of the stu
pendous export trade Of the country
realised as bankers bring In gold In rec
ord breaking amounts. And the posi-
bilities Of the workings Of tho Federal
reserve system are moro fully appre-
ciated as h banks take advantage OF
h ~discounting privilege in times Of
passing strength In the open market for
money.
At the close a week ago the ioca, Fed
eral reserve bank had only S652 900 Of
bills discounted for members. while at
he close Of last week the total ran to
upward Of $40. 0O0. 900. Not q large ig-
ure. but n significant one when It IL UNI
derstood that until last week the menu
Der banks had not to any extent util-
lied In this respect their membership OPP
~portunities.
Banks ana Money.
II Is still believed by many bankers
that tho Federal Reserve Board bunSled
matters by Ms public warning against
the investment Of bank funds IN foreign
treasury bills and indirectly against In
dividual Investments in foreign war Sc
curities, but II Is not assumed by the
greater number of bankers that the Fed
eral reserve system does not constitute
a power for good OF that with the banks
realtxing to a greater degree the Dement'S
that may be obtained from that system
In times OF need there will be many Pc
RODS when money rates will move to alb
normal levels, as they did on Monday
last
While money was advancing in New
York. due wholly to local conditions,
there was no disturbance at other CEN
tres. chiefly because OF the wider distri-
button OF funds IN this country through
h Federal reserve system.
The banking position in this city 10
strong. And 1t was not weak in the
early part Of last week. in spite Of the
rise In call and time money. &.
1t Is far stronger. however, than Il was
n week ago. when thee excess reserves of
the Clearing House institutions were at
the lowest point since tho establishment
of the new banking law. At that time
the total was $&1 .001 $40, while to-day Il
stands at $73.7s0.s40. the Increase hay
ing been brought about through a large
gain In actual cash and q contraction in
loans OF more than $50. 600. 900. the latter
representing the ~readjustment Of loans
incident to the rise in money rates early
In the week and the gain in cash reflect
ing In great part the receipts OF gold
from Canada.
More Gold TO Come.
Cash holdings would nave made even
a better showing had all the gold re-
ceived at the Assay Office been paid out
TO the banks. the physical facilities of
that Office making It impossible to count
and verify In the time of it's arrival an
amount in excess of $780, 600, 900. More
gold will be sent to this country from
Canada, where Great Britain has enor-
nous supplies. Gold in great volume
may be imported from Russia aHso.
Gold Is coming in response to the set
,,d % natn..I. H.'o
.xchan.a marn, ",n.,c' :" nv 1o.e,sn
th.t No, ,hs,anS ~. pIooapie
In ,oro,ar 10 hon '.Sn' uec,ine
hacause ., ~" ra1a.n .nis ,narket,
atti,udo r.eardinn tornn noarus
,hs Allies urrn onn ,mses.n"eh's,
dshts In rar, en- ~. ns .ne'r
thronch ,,,r,har eannnr 49, S,"sss
on a. sac,,rad Loo n'h,oI' ~, ~ o..s
a. q noss,h,,,tw ,or ,ha ell ,unr'ss
h ~, vaar NV carly "'"''' Vi
m. nos,,,o, TO- -
streny,bened nv goid ;m,nor,s anS 1, sa"
haan .,rona,, - -. ""u +. "a
onerations ana hu tha r.,sosa "a" 1870
upon which the recent bull speculation
In cotton and wheat was conducted. 1t
costs a great amount OF money to carry
cotton at above 20 cents n wheat In
the ~neighborhood OF 8. a bushel.
Since the recent time OF those high
prices cotton has declined more than
$40 n bale. while wheat has fallen back
to something better than s1.Gl a bushel.
Those markets are stronger for the de-
cline and the general situation has been
benefited by the movement.
The general tendency Is toward a bet
terment in the intrinsic strength of all
markets. There are few weak spots.
There IN no overstlmulation In trade
or speculation and there In no iniation
because OF receipts OF gold In the current
year OF $576. 900. 900. and more than
e-00 mn mn nat cinna tina ha0lprtnw ~