New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-05

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liness on the part of nature in supply
ing the new growth of the staple. The
indicated yield is only 6,736,000 bales,
less than the number exported last
year. Cotton suffered one of the most
disastrous months in its history. Yet.
from the standpoint of those who want
higher prices, the developments were
favorable. Economically 1t would be
regrettable if, after nearly two years
of painful defation, the work of read
justment is to be undone in this mar
ket
Intelligence involves learning from
experience. The same mistakes in CON
nection with the process Of ordering
German reparations payments as we're
made earlier in the year, when the
colossal disbursements tossed the resil-
lent foreign exchanges into fresh
spasm, were not repeated on August
81, when $185,000,000 was paid. Ger
many this time was permitted to make
payments in various currencies, based
on the current rate Of exchange, in
stead OF exclusively in dollars, as ear
lier in the year. With more time to
prepare to carry out the instructions
of the Reparaticns Commission, the
Germans gradually accumulated bal
ances to meet the payment by export
ing precious metals, establishing cred
its and selling marks. AS result the
actual day of payment came and went
unnoticed in the foreign exchange
market, when the European exchanges
were firm and unruffled.
Somewhat hrmer tendencies pre-
vailed in the Wall Street money mar
ket last week. Borrowers at the Stock
Exchange who were able to cover their
needs at s per cent at the beginning
of the week had to pay 51s subsequent-
~, as the end of the month demands
increased the pressure upon lending
institutions: The commercial money
market showed virtually no change,
with prime commercial paper holding
oo y ~ w PVA \CuI AO4 CtIG UcSC lldIGS.
Indications are that money will con-
tinue firm for~the next few weeks at
least. The demands incidental to crop
moving are increasing and by the mid
die Of the month the approaching in
stallment on account of Federal taxes.
due September Is, as well as govern
ment operation are likely to result in
a large shifting of banking funds.
These are factors that are likely to
dominate the call money market stu
alton and have only minor influence
upon commercial money.
The steady influx Of alien gold to
these shores is piling up Americas gold
reserves to unprecedented heights. The
total gold stock Of the country reached
new peak in the month just ended.
August imports of the metal were ap-
proximately s9o,ooo,ooo, and on the
basis of the available figures the total
gold stock of the country on September
1 was approximately $685., 100000. The
increase since January j has been an
proximately s6oo,Ooo00o The largest
previous net increase in the gold stock
was made in 1916, when the food Of
Allied gold poured into the country to
pay for Allied war purchases amounted
to $529, 100000. So far there Is no sign
Of any let-up In the present import
movement, which has been under wav
for nearly two years.
The investment market, though quiet
reflects underlying strength. New cor
porate financing has been on a small
scale. The most important new issue
last week was the Brazilian govern
ment s25,ooo,ooo twenty-year per
cent loan, offered to investors on q
yield basis Of s.15 per cent.