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Show THIS WEEK'S MARKET CONDITION. In his weekly letter, this week, Henry Clews says: . The reaction in the stock market came, as foreshadowed in my last week's letter. The pace of the two previous weeks had been altogether alto-gether too rapid, and much of the advance in that period was quickly lost. Although the rise in the market had been led by very powerful and aggressive interests, yet theTe remained exceedingly influential parties not entirely in sympathy with the advance. As a result the taking of profits began on a large scale. Aside from profit-taking and manipulation, an important cause of reaction rested on monetary developments. Last week's advance in the Bank of Englanl rate concentrated attention upon the nione-tary nione-tary strain threatened in London. For months past foreign expert have been harping upon the probability of a monetary crisis in the United States this autumn. Singularly enough the situation has developed de-veloped so that there is little or no danger of a crisis in this country, and that if a crisis is to occur at all it will most probably be in London, Lon-don, just where the warning to America originated. The money market will require watching. Loans are considerably consider-ably in excess of deposits, an unusual and undesirable circumstance. Preparations are in order for November disbursements. The strain in the London money market must have a reflex action here, although gold shipments are not1 to be expected at this season, unless Europe should become a free seller of American stocks. London can get accommodation ac-commodation if needed on better terms in Paris than in New York. Local rates for money are firm and good commercial paper commands as high as 6 per cent. Canada is already withdrawing funds from New York, and it remains to be seen whether London will force New York to ship gold to Argentina to settle balances there, as was the case a year ago. Again the treasury situation is becoming more acute and the government will soon be obliged to issue bonds to meet expenditures ex-penditures on the Panama canal. Unfortunately this issue i3 delayed by interpretations of the law concerning the postal savings banks, which were expected to provide a market for the new bonds. Altogether Alto-gether the money market is in an int.-resting situation. Doubtless it will work out of present difficulties into an easier condition later on. but during the interval is likely to be a factor of importance in security market. 1 Current events, such a3 the political situation and a not very satisfactory sat-isfactory steel report, were also used to explain the reaction; but the real cause lay in the disposition to take profits and the necessity of restraining speculation in order to avoid a severe monetary stringency. |