The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-11

movements of money The $21, 259. 200 loan
contraction was in accordance with expec-
tations In view of the stock market
liquidation and the transfer of credits to
foreign lenders. But the heavy loss in
cash affected the showing of the surplus.
Expectations that the coal mining dispute
will come to a head next week, had some
influence on sentiment
The tone of foreign exchange was
steady, although the Saturday market Is
nominal. Reports of negotiations for
large Russian loan indicated forth
coming demand on the relaxing of for
eign money markets. resultant on the
promised settlement of the Moroccan con-
troversy The market closed unsettled
and dull
Total sales of bonds. par value, 5000.
The week opened with a spasm of llqui-
dation in stocks which was elimination
of the persistent decline of last week.
The urgent liquidation of Monday SEEM
ed TO complete the neeessitious selling for
the time, and the following days showed
relief from pressure, but trading was
dull and sluggish. The heavy liquida-
ton of the first of the week was the
natural consequence of the downward
drift of the previous markets which had
wiped out numerous margins on speeula-
tive holdings, and caused shrinkage
in collateral, which made tenders on
stock collateral dissatisfied and discour-
aged speculative holders who threw over
holdings in despair of any early turn in
the course of prices. The paying off of
leans which accompanied the liquidation,
relieved the position of the banks, which
were striving to keep within the legal
reserve limit against inroads on their
cash holdings.
The money market also showed the eff
feet of the government funds deposited
with the banks, the So 100000 allotted to
New York having reached the banks be-
fore the end of the week. The downward
movement Of foreign exchange which ten
ded TO open foreign money markets to
New York requirements, was due nrpart
to the improved political conditions
abroad growing out of the Frightening
prospects for a settlement of the Moroc-
can question, with assurance of peace
1t was believed that large supply of ex-
change came from the placing with for
eign subscribers of blocks of the New
York bond issues, which have been com
ing in such large volume from railroads
and industrial corporations. This devel-
opment was regarded with satisfaction as
affording a double relief from threatened
requirements on domestic capital which
might displace older Investments AMI
throw them on the market, The shipment
of gold to Japan from San Francisco
against deposits here in the sub-treasury
was crosse current in the currency
movement, and there was sales of ex-
change against these remittances of gold
which helped to weaken the foreign ex-
change market here. The extent of the
decline in stocks in itself, made the cur
rent level Of prices attractive for resump
ton of buying and professional opera
tions were renewed with vigor when the
cessation of the liquidation was demon
strated.
A revival of many rumors of intended
projects and important developments
which have served as ammunition for the
bulls In the past, a feature of the
new buying which became large and ag
gressive after the middle of the week.
Considerations of less favorable import
were given attention on the decline, but
fell sout of sight again. Early in the
week Wall street was inclined to take
a very pessimistic view of the chances
for averting a strike of anthracite miners
The message of the President with the
resolution for investigation of charges of
a coal and oil monopoly intensified the
apprehension of harm to securities from
the prevailing legislative activity toward
affairs of corporations. The halt in the
iron market pending the determination of
future requirements was made the text for
discussion In d probable coming reaction
in business, and the decline in securities
was feared as a possible herald of the
necessity for letting out imitation in other
quarters. The dispute over passenger
rates between the Chicago and New York
lines was of bad effect, on sentiment The
continuing output of great bond issues
caused anxiety of possible glut in the
securities markets.
Railroad earnings show enormous in
creases over those for the corresponding
period of last year. and reports from diff
ferent lines of trade and industry show
well-sustained demand, which offered no.
ground for anxiety over the soundness OF
the business situation.
Bonds were dull and generally heavy.
United States Is and old As advanced "
and the 3s and new registered 4 per cent
on call.