The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-08-18
STOCK MARKET
WITHOUT LIFE
Yesterdays Session Was Dull
and Professional Throughout
HIGH MONEY RATES NEAR
ceuntry's Brilliant Crop Prospects
and the Danger of strIneency In
the Money Market Have Been
Features During Week.
HIGH MONEY RATES NEAR

yesterday U per cent call money rate IS
to the narrowing resources of the local
money market. In spite of the relief at
forded by extensive transfers of loans to
foreign lenders through the medium OF
the exchange market, the large local re-
quirements have resulted in increasing
the average of bank loans to the extent
OF S2,653,o00. The stock market was dull
and professional throughout.
There is no loan market on Saturday,
md the practical effect of the bank state
ment on the money market must await
the opening on Monday. 1t 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
" with the generally heavy tone de-
veloped after the bank statement. st.
Louis Southwestern preferred was rushed
up to IL over last night just before the
close. Southern Pacific ard the western
stocks generally were subjected to profit
taking. The reported intention of the
Southern Pacific directors to ask author
ity to issue 500 100000 bonds to improve
the property is given as an explanation
Of the strength of the stock. The market
closed heavy.
The country's brilliant crop prospects
and the danger of a stringency in the
money market this fall have been the
chief interests in the stock market this
week. The week opened with the latter
influence decidedly in the ascendant. The
bank statement published last Saturday
while the stock exchange was not in ses-
sion, revealed so considerable an inroad
upon the surplus reserve banks already
at an unusual figure, that disquieted
sentiment made itself evident in free Of
ferings of stock.
There is no restriction of credits or
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
withdrawal of credits from spectators
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 6 per cent in mercantile
affairs is possible while money rates on
the stock exchange for the purpose or
holding securities on margin are soar
ing to panic figures. 1t Is clear that the
demands upon the money market this
fall will be unusually large. At the same
time the indebt edness of foreigners Is
known to overwhelmingly large. Syn
dictate borrowings abroad early In the
year may be presumed to have been pre-
dicted upon maintenance of our favora-
BILE trade balances of last years level.
Instead of that the excess of our mer-
chandise exports over imports for the
seven months of the calendar year is
1888, 325, S32 less than last year. There has
in currency been very active renewal
of foreign borrowings to later maturi-
ties. This short interest overhanging the
exchange market has deferred prospec-
tive shippers of merchandise from ouer-
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 $191, 455, 761 in the seven months
Just past, and is substantially added TO
with every passing month.
The prospect for the export demand for
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 a source of suf-
ficient 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-
cial 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
ulatfon 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 ]. r. Keene,
whose speculative leadership in the prac-
teal 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 Is advanced x and the
&c. new, Is, registered, and IS u per cent
ss compared with the last weeks closing.
Financial.
New York, August 6-Commercial-Ad-
vertiser's financial cablegram:
There was a thin attendance on 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-
soils sold at 95ss.
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.
COTHRAM & co.
Members OF Chicago Board of Trade
New Orleans Cotton Exchange
Rooms / and Alabama national ~,
Building.
Private leased wires to New Yorr NJ.
orleans and Chicago.
COTTON, STOCKS AND GRAIN.