The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-08-19
STOCKS SAGGING
AND VERY DULL
lnroads Are Being Made on
Banking Reserves
TIME RATES FIRMLY HELD
The Closing Tone Was Dull and
Heavy-There Was Less Demand
for Commercial Paper-Bonds
Still Keep in a Narrow Rut.
TIME RATES FIRMLY HELD

New York, August ia dull and sag
ging stock market today was the natur-
al consequence of various evidences go
Ing to show that the expanding needs of
the circulation are making increasing in
roads upon banking reserves. The con-
finued transfer of credits to foreign len
ders through the medium of the exchange
market mitigated the anxiety over the
money outlook without entirely curing
1t. The response of the London discount
market to the American borrowing de-
mand gives warning that the process
may be checked by bringing the interest
rates of the two centers to q parity. In
the local money market the banks very
generally marked up their rates for call
loans to ~ per cent and the rate touch
ed per cent during the morning. There
was less demand for commercial paper
and the rates for time loans were firmly
held at per cent for all periods. Re
ports from interior monetary centers
were of a firm tone to the money mar
ket and large demand from smaller
towns and country places for currency,
Indicating the nearer approach Of the
demand upon New York reserves. New
+ York exchange at Chicago continued to
drop and was quoted at 10 cents discount
compared with 20 cents premium early
last week. The New York sub treasury
Is contributing slightly to the local
money market by reason of the full tide
in the monthly pension payment, but
the recent daily deficit reported by the
treasury at Washington gave place to-
day to a surplus of several hundred
thousand dollars for the first day during
the current month.
This recalls the course of the govern
ment revenues last month, the deficit
having reached nearly $13000,000 about
the middle of the month. but falling to
S75o0,000 by the end of the month. Satur-
days treasury statement showed de-
felt for the month to date of $2,751,o-
compared. with a surplus of more than
half a million for the corresponding
period last year. The decrease in inter-
nal revenue thus far this month by rea-
son of the repeal of the war taxes has
reached So, 4Ol,3 44 compared with last year
while the custom receipts this month are
2,5S6.324 greater than last year and the
total this years receipts have expanded
This month 1876 over last year.
1t is only, therefore by reason OF an
increase in the months expenditures by
the government of s4,50S.0O0 that the
money market has experienced any relief
from the drain caused last year by the
governments surplus. Whether the in
creased rate of expenditures of the gov
eminent is likely to be kept up is a prob
lem much discussed in Wall Street, owing
to the approaching depletion of banking
reserves. Besides the local money situa-
ton the market was depressed by selling
of stocks for London account owing to
hardening of money rates there. The next
earnings of railroads for June reported
show some decline in the southwest owing
to shortage In the corn movement and
intimations were given of probably SINH
lar results for July. The reported retire
ment of the president of the United States
Steel Corporation had some infuene in the
general market, although the stocks of
that corporation were but little affected.
Ofsetting factors in the heaviness of
the market were the strength of Louis
Vile and Nashville on supposed progress
In the financial adjustment in Toledo,
derbilt control, in Texas and Pacific, on
the alleged seeking of control of St Louis
and San Francisco, Chicago Terminal
stocks on rumored plans of new tenants
and in number of minor specialties
The losing tone was dull and heavy.
The reduction in the yearly interest dis
bursement on the Central of Georgia
first income, weakened that group of
stocks, and had some sympathetic eff
feet elsewhere. Bonds were quiet. Total
sales par value $1,770 600. United States
refundng rs advanced u and the new As
u per cent on the last call.