The Birmingham age-herald., 1905-03-20

s5,154,175, which is low for this period of the year, with the interior demand for currency now imminent. The weight is, therefore, in favor of somewhat higher rates for money. But offerings of funds by the trust companies at the higher rates may be expected. The usual discussion is thus invited of the growing part played by these institutions in the money situa- ton as a whole from the showing by the banks themselves. Foreign exchange con- tinued its decline in spite of the firmness of discounts in London.
 Total sales of bonds, par value, $l,- T5000.
 Speculative sentiment showed itself dis trustful of the market from the opening of the week, but there was good resist ance to the moderate pressure during the early part of the week, in the absence of any unfavorable prospect in the general business industrial and financial condi- tions.
 With the rise in the call rate for nor z. the reactionary tendency assumed the up per hand and pressure to sell overweight ed the market. The power of the market to resist short sales and to absorb the heavy profit taking from time to time, and the constant development of new points of strength served however, to convince the skeptical that stocks were being taken out of the market by the substantial holding powers. and gave color to the many ru- mors constantly related of accumulations of many stocks for purposes of control and ultimate plans of combination and re- adjustments of relations which were ex- pected to increase the value of properties The partisans of continued advance also had on their side of the argument the unclouded conditions in the business of the country. Trade was admittedly ex- banding in all directions. and the extra ordinary activity in the iron and steel trade especially was of great force as an index of prosperous industrial conditions as a whole. Unprecedented bank clear ings were clear proof of the large volume of business and the enormous outlay in progress by the railroads. and plans for still further expansion in the future. wit messed a confidence in the permanency of growing requirements on the part of those intrusted as the most competent judges of the course of business.
 With the demand for money almost nominal from day to day loans. there was a profit in buying stocks with bor- Iowed money on which the dividend re- turn, even at the reduced rate on pres ent high prices was sufficient to pay carrying charges on a margin in addi- tion. While this condition lasted, small price fiuctuationa would be regarded with much greater tranquility than where the profit on a rise was alone relied upon. Many of these holdings also were acquired at an early stage in the rise. and offer ed wide enough profit to afford abund- ant opportunity to get out without loss. Even when the rise in call money modi- fied this condition. there was manifest restraint in the reaction. and the resist ing power of the market was notable This attitude is partly due to the belief that the furry in call money is tempor- arv and due to the payment of 5 per cent of government deposits with national banks. which was made on the 18th in re- snonse to local demands
 The bond market has been less active and there has been no notable advance in prices of railroad mortgages.
 Tnited States bonds were all unchanged on call on the week.