The Birmingham age-herald., 1905-11-12

year. the heavy decline in value of cotton exports amounting to about double the increase in exports of breadstuffs. This showing goes to explain the resistance in the foreign exchange market to the in- fiuence of the violent rise in money rates here.
 Total salesof bonds, par value, N, ,635. .0OO
 The sharp constricton of the money supply and the recall of credits from the stock market thus made necessary have resulted in liquidation of securities this week which have carried prices compre- hensively to a lower level. The movement was irregular and interrupted by occs- sional rallies and the market showed con- siderable resistance at times during the week. But the rise in all money ra,es to level higher than has been repor ed in two years and a half upset the con posture of holders, and brought stocks freely upon the market. On Monday the market was little disturbed, notwithstand- ing the plain intmation carried by the Saturday bank statement that a contrac- tion of loans by the banks would be nec- essary to keep within their legal re- serve requirement.. The weakness devel- oped on Wednesday after the election holi- day, was disturbed in about equal parts to the money situation, and to feeling of uneaslness amongst the speculative element that the effect of the elections would be to strengthen and encourage the pushing of policies directed againN corporation privileges This was a revival of an influence felt In the stock market at periods of the recent revelations of abuses in the conduct of corporations, which 1t was feared would occasion dis trust among the investment classes to the detriment of securities. With the course of the week the money came to domin- ate all other considerations.
 The warnings of possible money string ency contained in the course of the bank ing position has been boldly Ignored by an aggressive speculative element in the stock market. Operations for an advance have ben followed up with professions of confidence in the maintenance of easy money rates, and ample supplies of funds to sustain a speculation based on the extraordinary prosperity existing in all department of commerce, industry and agriculture. This confidence was based in part on the assumption that the demand for funds would be satisfied with the turn of the month of October according to the precedent of former years. On the contrary the movement of funds to the interior has been renewed with extraor- dinary force in the last two weeks and the withdrawals from New York have been larger in volume than any previous similar period for the season. The conse- quence was the reduction of the surplus reserves of the banks as shown by last weeks statement to less than s2,500 900, which the further losses by the middle of this week were sufficient to reduce the cash holdings of the banks below the legal reserve limit. It is evident also from the event of the week that the speculative forces conducting operations in the market has counted confidently on the intervention of the treasury depart by the redeposit of government funds withdrawn last July in the event of any threat of stringency of money
 The stock market developed It's acute phase of weakness when 1t was announced after the visit of Secretary Shaw to Wall street that he saw nothing in the money situation to call for measures by the treasury department. The fact t<lt the governments excess of expenditures over receipts since July 1 has run to over s15,00O,O00 has left the treasurys cash balance in no better condition than when 1t was considered advisable to replenish 1t by withdrawals from national banks. Since that time also, the operation of the refundng offered by the treasury has increased the supply of bonds available to secure additional bank note currency.
 Bonds have been finally somewhat aee fected by the needs of the money mar ket, and have weakened in sympathy with stocks.
 United States 2s advanced # per cent and the new As declined A per cent on call on the week.