The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-08
SHOW OF STRENGTH
T CAME EARLY IN DAY
Comprehensive Reaction Fol-
lows Later in the Day
SOME HEAVY CASH LOSSES
Circular of Secretary Shaw Warning
National Banks Against Certain
Kinds of Loans Has a
Marked Effect.

New York, September Price move
Tnents of stocks today reflected a mixed
sentiment in the speculation and one
liable to alterations during the day. The
most general show of strength came early
In the day. and this was largely in SYM
pathy with the special strength of indi-
vidual stocks. Later in the day there was
a comprehensive reaction.
The decline was attributed to the heavy
cash losses which the banks were shown
by the preliminary estimates of the
weeks currency movement to have suf-
fered A chilling effect on the confidence
OF speculative operators of obtaining
abundant means from the money market
was caused by the strong terms of Secre-
tary Shaw's circular to national bank
repositories warning them against putting
out government deposits in their custody
In loans at high rates of interest. The
access to accounts of national banks and
the control of their conduct exercised by
the treasury department through the
comptroller's office, are believed to offer
a medium through which the head of the
department will be able to enforce his in
functions, or to>}znow whether they have
been observed. According to opinions ex-
pressed in the Wall street district. and
amongst bankers. that a general enforce
ment of the rule laid down by the secre-
tary would greatly pinch. the resources
now employed in sustaining the specula-
ton in stocks, is clear.
The possible results to follow from the
differences thus suggested were not rel
4cla Cd Afr l,1II Af e. lie arpfn
with borrowed money and some specula-
tive liquidation was caused. The day S
sub-treasury statement showed a small
part ofSthe earlier talkings of that insti-
tuition restored to the banks, but the loss
for the week on that account still stood
at $4,4S4000, while estimates, by the banks
are of a loss of cash to the interior on
the direct express movement of rather
more than the sub-treasury Withdrawals.
A decline in cash reserves of $40, ,0e0
with last weeks surplus below $1,000, 900
had a restraining influence on specula-
tion dependent on a continuance of large
credit extensions.
Money on call, on the other hand.
showed some relaxation, and did not get
as high as yesterday, and time loans
were quoted easier. The days advlces
added to the confidence that substantial
replenishment of cash will be available to
New York banks promptly on Monday
when the treasury order regarding gold
imports goes into effect Estimates of en-
gagements in London point to an amount
reaching $10,000O00 or upwards. Any-addi-
ton to this supply by Paris enga gements
is a matter of less assurance, but is with
in the probabilities. Under the terms of
the treasury order also gold on the way
from Australia will enttle the consignees
to government deposits until the period of
arrival. Last week S1,5OOOOO was shipped
from that source for San Francisco. An
approaching requirement for cash which
has not vet received public attention Is
the necessity of the New York Trust COM
panies to increase their cash reserves
from per cent on deposits which became