Show WORST IS S OVER SAYS CLEWS H HE WHO HOARDS r ONEY IS s PUBLIC LC NY NEW YORK YOEK Nov 19 In In his bis regular financial letter for the week just closed Henry Clews Clear says Confidence is reviving gradually Distrust Distrust Distrust Dis Dis- trust is less Jess acute acuto than lhnn at tho time of tho the runs on financial institutions institutional although al ale though h the tho shock then administered is traveling tra across the continent and starting starting start start- in ing the forces of readjustment in general gen jen era oral eral business with unexpected seventy Our chief cl trouble has hns been beon tho the demoralized demoralized condition of credit The Tho local banks are arc handling the tho crisis with admirable admirable ad ad- mirable skill and spirit but hut are aro still crippled by the universal loss of confidence confidence dence and because of a temporary breakdown in the credit system are arc unable unable un un- able abIe to do their full share of the country's country's coun coun- try's business It It is estimated that fully 95 OS per cent of tho the transactions in th this country arc aro i settled by check or the tho transfer and balancing of credits yet ot in many instances instances instances in in- stances the tho banks banI 9 are now obliged to refuse credit on ou checks for deposit tho the result being a much heavier demand than usual for currency in the making of payments Added to this exceptional demand is the tendency t to hoard cash not only by individuals but by scum of the interior banks Nothing could be bo more moro harmful at such BUch a time Limo than hoarding Stockings Arc Are Unsafe This tendency it is true has been somewhat counteracted by the premium of 2 to d h per cent on currency but the tho Tho The injury is is serious nevertheless nc hoarder should be regarded reg as an enemy of society and shamed out of his folly Thore There are numberless institutions all allover allover over the country where the depositors depositor's money is perfectly safe while whilo in stockings stockings stock stock- in ings and other hiding places it is very unsafe Many of our state banks have enviable records for safety and sound sound- ness nes Our national banks are eminently safe so 60 too aro arc our savings banks and conservatively e y managed trust compa compa- nies People must cease their silly and injurious injurious in iu- jurious hoarding and if disposed to invest invest invest in in- vest at this time should deposit their funds in bankin banking institutions of well ell established reputation managed by men of high character and ability and free from nil all undesirable connect connections Ions There aro plenty plent of such institutions not a afew afew few fow of which are profiting largely largel by this sh shifting tin of deposits from weak to strong concerns but the they are not among the class that seek public notoriety Extraordinary efforts for relief are being made in all ill directions Many millions mil mil- lions of clearing house certificates tes have been issued in various parts of tho country country coun coun- try irrespective tive of New York City Weh We Wo h have o already engaged about of gold gold and most natural form of relief and and the national bank circulation lation is bein being rapidly expanded about havin having been added in O October October Octo Octo- tober to- to ber alone By such means the tho banks have ha been enabled to materially ease case the tho strain on n credit R Belief Is In Sight It is unfortunate that this stress tress comes during the crop mo moving n time but relief does not seem far distant and the tan tangle lQ is working working- out its own solution tion The he grain ain movement has been distinctly stimulated by financial stringency stringency gency ency western holders bein being compelled to still soil and Europe fortunately coming comin in as as a free buyer at the tho emergency Very Yer likely this may prove proe to our loss 1059 for the worlds world's wheat crop is is decidedly short and we aro arc losing the tho chance chanco of selling sellinA our surplus at a n better price later on but this is is one of the penalties of post past excesses The real bene benefit t to us comes in ui in tho the freer importation of gold old which Is afforded afforded afforded af af- af- af forded the best form fOrIn of relief Our cotton cotton cotton cot cot- ton situation however is ii still a rob lam lem The Tho exports of this staple nave have fallen falen off considerably southern holders hold bold bolders holders ers persisting in holding the tho crop for better prices Considering the certainty of lessened consumption in in both Europe European an and ana d America H as well as ns tho the difficulty difficult of carrying cotton under present financial conditions the outlook for that staple is somewhat perplexing since if we wd arc to go o on importing gold wo we may mar bo be obliged cd to export cotton in in payment oven even at a sacrifice ee We have havo now taken of foreign for eign ign gold Jold and this appears sufficient for the present Beyond dispute it is is unwise unwise policy for us to unduly weaken tho the European hanks banks especially when sudden relief hero afterwards is more apt to defer than to complete the cure of our o own n troubles In the Ions long run excessive excessive ex ex- importations will injure the United States by weakening corrective e influences and creating a glut of funds next spring sprin that may m invite te hea heavy gold Jold exports and undue reaction Need Elastic Currency The tho iho great reat expansion which is now being made in in our circulating medium is sure suro to result in a surplus o of idle funds when whon the present crisis subsides Then we wo will feel fecI tho the lack of an clastic elastic currency currency cur cur- rency system which expands and contracts contracts con con- tracts in accordance with demands No civilized country in the world shows s such Each violent fluctuations in interest rates as th the United States simply because because be be- cause causo we wo have no efficient means of re regulating lating the tho supply of currency Tho ho remaining six weeks of the year Tear year will require much patience and skillful piloting by those who control the tho financial financial finan finan- cial situation The usual maturities which occur about the close of the year will have bayo to be provided for so 80 will the tho of dividend divi lend and interest interest interest inter inter- est payments at that time These will probably be more lar largely ely applied to the payment of debts than to investments of new securities Moreover there are aro lar large e syndicate payments soon coming comInA dun due and mn nOR 1008 1 nORt at t least st. of of short term short t rt-t Tn i D notes t s- s s1 mature 1 tut Many r y of these obligations c can n of a course bo extended if found necessary Altogether at best the situation is isone isone isone one that calls for much conservatism It is a good timo time to be bo satisfied with retaining retaining re re- what one has rather than try to gain aln more just now through h bazar hazardous ous ventures The downward reaction which bc began an in stocks has fully folly entered into commercial mid ami industrial affairs s 's and must inevitably run its course Many orders for goods will probably be bo canceled can can- c led loo hence mills mill w will curtail or shut shutdown shutdown shutdown down building will bo be checked and unavoidably unavoidably un un- un avoidably many hands thrown out of or employment involving a more or less general reduction In wag wages wa es These are the sequences of a n panic following a n prolonged period of prosperity Tho he pendulum must swin swing both ways ways and the lon longer er the s swing in one direction 1 the more violent the return in tho the thoI I other Worst Has Hag Passed Fortunately the tho stock market has largely If not fully discounted the re re- re- re action Security values may go o lower in case of further er financial difficulties but tho e cannot now be he ex ex- Wall street has passed through h the worst of the cyclone one badly crippled it is true but still able to weather the tho clearing squalls and ready to continue the theoya oya voyage e under close reef reCi of sails Until until until un un- til fair fairweather weather again comes into si sight eight ht The next two weeks should bring much better bank statements Interior banks have drawn heavily on New Now York but this on ought ht to be largely offset by bi big hold gold old im imports that must shortly give ive very substantial relief No Nomore Nomore more moro patriotic duty can cm now be undertaken undertaken undertaken under under- taken by any citizen than to do hi his hia best to restore confidence by rational means not by timid concealment of the tha facts but by a spirit of helpfulness s. s by hy consideration consideration con cou- and patience by quiet recognition recognition of the situation and by a calm acceptance of or the he inevitable process of readjustment which has already set in inand inand inand and must work out ft Its own solution |