The Birmingham age-herald., 1902-08-17
STOCK MARKET
 WITHOUT LIFE Yesterdays Session Was Dull and Professional Throughout HIGH MONEY RATES NEAR country's Brilliant Crop Prospects .a L..
eountry's Brilliant Crop Prospects and the Danger of strlngenoy In the Money Market Have Been
 Features During Week.

New York, August 1e,-Today's bank etatement reinforced the admontion of 6sslsrdats per cent call money rate rs to the narrowing resources of the local money market In spite of the relief af- forded by extensive transfers of loans to Foreign lenders through the medium of the exchange market, tho large local re- euirements have resulted in increasing ahe average of bank loans to the extent of s2.85So00 The stock market waa dull and professional throughout
 There is no loan market on Saturday end the practical effect of the bank state. ment on the money market must await the opening on Monday. It is clear that higher money rates are indicated. There was continuance of the aggressive bull movement in the Toledo, St. Louis and Western stocks, but they reacted sharp 1y with the generally heavy tone de- Seloped after the bank statement. St. Louis Southwestern preferred was rushed hp to 1M over last night just before the close. Southern Pacific and the western etoolks generally were subjected to profit taking. The reported intention of the Southern Pacific directors to ask author fly to issue SOO. 100000 bonds to improve fhe property Is given as an explanation of the strength of the stock. The market closed heavy.
 The countrys brilliant crop prospects and the danger of a stringency in the chief interests in the stock market this
 
 Influence decidedly in the ascendant. The bank statement published last Saturday, while the stock exchange was not in ses- sion, revealed so considerable an .nroad upon the surplus reserve banks already at an unusual figure, that a disquieted sentiment made itself evident in free off, ferings of stock.
 There Is no restriction of credits doubts of the soundness of the business condition to account for the high inter est rates which money commands. But in the case of securities which may be had at artificial levels by means of bar rowed money, there is the doing that a withdrawal of credits from speculators would leave the stock market without sufficient support for prices and would lead to collapse. Experiences abundant ly proves that a steady interest rate at not exceeding per cent in mercantile affairs is possible while money rates on the stock exchange for the purpose of holding securities on margin are soar ing to panic figures. It is clear that the demands upon the money market this fall will be unusually large. At the same time the indebtedness of foreigners is known to be extraordinarily large. Sym dieate borrowings abroad early in the year may be presumed to have been pre- dicted upon maintenance of our favora- ble trade balances of last years level. Instead of that the excess of our mer- chahdse exports over imports for the seven months of the calendar year is $133, 325. S32 less than last year. There has in currency been a very active renewal of foreign borrowings to later maturi- ties This short interest overhanging the exchange market has deterred prospec- tive shippers of merchandise from offer ing bills against these future shipments, as the possibilities of covering at profit when the crops move Is much diminish ed. But while the trade balance in our favor has thus materially been cut down, it has still mounted to the substantial figure of S191 455, ,761 in the seven months inst past and is substantially added to with every passing month
 The prospect for the export demand Tor the coming crops indicates that the in- crease in our trade balance will be largely accelerated. The growing certainty of this has led to the additional borrowing abroad which have led to the sharp de- cline in the foreign exchange market dur ing the latter part of the week has check ed the outward movement of gold and aroused the hope that source of suf- flcient supply has been found for meet ing the coming requirements of the west for money and credits during the crop moving season. The beginning of this interior demand is now almost daily ex- pected Fears of disturbance of the money market by the government finan- eial operations is not altogether allayed through the continuing deficit in the revenues up to this time has relieved the money market from requirements. From that score. The enumeration of influences which have been made to subserve spec ulation would not be complete without including the sailing for home of J. P. Morgan upon whose return many import ant projects are supposed to await and the prospective return of J. R. Keene, whose speculative leadership in the prac- tical operations in the market is some- times a factor in animated dealings.
 A few speculative bond issues have comprised the features in that depart ment.
 United States 2s advanced 1s and the Ss. new, As, registered, and 5s 4 per cent as compared with the last weeks closing.
 Financial.
 New York, August 16.-Commercial-Ad- vertisers financial cablegram:
 There was a thin attendance the floor of the Stock Exchange owing to the naval review, but business was fair and the tone was satisfactory. The advance in Kaffirs were a helpful influence. Con- sols sold at 95s
 American stocks. though lower on New York advances, showed a firm undertone; the only feature being a considerable demand for Wabash preferred.
 The Bank of England has bought e25- 900 in bars.
 Treasury Statement.
 Washington, August 16.-Today's treas ury balances, exclusive of the gold re-