The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-04

consequent reduction of deposits and of
the reserve requirement served to pro-
tect the surplus of the banks from any
but nominal inroad by the weeks with
drawals of cash. These proved about
what was expected, and as some of the
heaviest shipments to the interior were
made on Thursday and Friday, the eff
feet on the daily averages may be eX-
pected to be thrown over into next week 8
bank statement. The sub-treasury had
credit balance at the clearing house to-
day indicating a continuance of the flow
from the money market to the govern
ment. The comparatively favorable bank
statement indicated that the conversion
of the surplus reserves was dependent on
the loan contraction. With the tendency
still running against the cash reserves
Of the banks and the prospects of fur
Their withdrawal of funds to keep pace
with In the shrinlxage in reserve, the
speculative sentiment was disinclined to
venture on new commitments in the stock
market. The later pressure on the mar
l1et centered principally on Amalgamat-
ed copper as was the case yesterday.
Total sales of bonds, par value, 81 440,-
000
There has been some large liquidation
Of speculative holdings of stock this
week and poor demand to absorb so
that prices were carried downward sharp
ly The restriction of banking resources
and the higher rates for call and time
loans have been credited with At large
influence on the action of the market.
Their part has been supplemented by
other factors lying not SO near the sur
face but of far-reaching effect on the
market. Current conditions of trade and
industry are not among these as all re-
ports combine to show extraordinary
condition of prosperity in all quarters In
coming returns of railroad net earnings
for January show increases over those
of preceding January of almost unpre-
cedented extent The reports of weekly
gross earnings for February show high
rate of increase we'll maintained. The
comparison is affected by the extremely
favorable operating conditions due to the
open winter this year, while for this
period last year the blockade and extreme
cold conditions made for much against
the average.
But the greatest weight attaches to the
fact that the conditions now being re-
ported largely entered into the calcula-
tions of operators in the market during
the period of active advances in prices
of stocks so that their effect has been
already felt as a stock makret factor.
The maturing of many obligations comes
to meet the effect Of the spring influx of
money to reserve centers. All accounts
agree also on the extraordinary activity
of the demand for credits In all Depart
ments of trade and industry, and ex-
pansion of enterprise. The domestic in
terror finds ample employment for bank
ing resources, and withdraws deposits on
the New York bank reserves to meet
them, thus expanding the volume of the
drain in New York, usual at this period.
Business activity extends to the for
eign trade and enormous imports results
in heavy customs payments at New York
and large payments by the New York
banks into the sub-treasury at this point.
The huge new Issues of bonds and stocks
by existing railroad and industrial cor
porations measure the expanding tend
eney of enterprise. New interpretations of
a million dollars each and upwards for
February while falling below January
are the largest for any February, and
the total of such interpretations for the
two first months of the year report a
total as large as for the whole year, 1905,
a large proportion being represented by
new copper-mining and electrical COM
panes.
Bonds have been full and heavy
throughout the week.
United States 2s 3s and old As regis
tered a the old coupon II and the new
As q per cent on call on the week.