The Birmingham age-herald., 1905-09-10

banks to other institutions. The trust companies alone have taken over large loans during the week. The break in for eign exchange has been due to the bor- rowing of funds in foreign markets. It is reported also that some western institu- tions have placed some large loans in New York this week, and the upward course of New York exchange at Chi cago bears out this supposition. The com parative tranquility of the call money market is supposed to be due to a large shifting of stock market borrowing from call loans Into time loans. The market closed unsettled and irregular and very dull.
 Total sales of bonds today, par value, $1,045, 900.
 Prices have moved irregularly during the week, and the tone of the market has been unsettled under the additional liquidation induced by the narrowing re- sources of the money market. The week opened with sharp rebound In prices after the holiday interval caused by the necessities of the over-extended shorts whose precipitation had followed the decline of the preceding week with too much eagerness. With the urgent part of this demand satisfied the market dem- onstrated again the poor demand for stocks at existing prices and fell back to lower level, with occasional recoveries The attention of operators in stocks was concentrated on money market conditions and there was no development in any other direction to account for the weak ness of stocks, unless an exception Is made of the reactionary tendency in the copper metal market after the previous upward flight.
 The existence of yellow fever fin the south causes some interruption to traffic in that region alone. News from the I1t~ Cow I,f even the cotton crop yielding favorable influence by the unexpectedly small de- cline in condition revealed by the gov ernment's August report. The corn crop Is tending toward the largest yield in the history of the country.
 The steel trade is enlivened by the active demand for all grades of product. The volume of bank clearings for August has risen to total never before eoualled for that month.
 With this substantial basis for values in evidence, a break is afforded upon the downward course of prices The principal selling of stocks evidently comes from those who are holding with borrowed money which Is recalled by the lenders for other necessities or to make provision for an outlook which clearly threatens the need for further contraction of cred It's The seasonable demand for funds from interior sources Is proving large, in view of the large crops to be moved. and great business activity The small proportion of the surplus reserve of New York banks revealed by recent bank state ments clearly pointed to the necessity for scaling down deposits by a reduction of loans to keep pace with the with drawals of cash from New York in or der to keep within the limits of the legal reserve.
 The banking situation thus far is de- veloping along normal lines. But on the side of the foreign exchanges. greater un- certainty exists, owing principally to the question of the amount of the demand for credits which will be made by the newly pacifed powers. The belief that Russias relief from an indemnity obli- gation would restrict its borrowings has given way to the supposition that a large Russian loan is to be forthcom- ing The continued accumulation of gold at Paris Is the warrant for this suppo- sition. This has induced a rise in the official discount rate of the Bank of Eng land and the expectation that the Im- perial bank of Germany will follow with a similar action.
 Bonds have been affected by the efforts to Iiquidate securities but in much less degree than stocks. United States 2s advanced M. the 3's and old fs A. and the new As N per cent on call on the week.