The Birmingham age-herald., 1906-10-07

TOWeTS. III spite or lHlS lelllHB uOWI ol the bars, the demand of New York upon London for gold relaxed and foreign ex- change rates here advanced. All this was accepted as evidence that the great strain on banking reserves reflected in the banking figures past requirements, and the great resources thus tied up, were flowing back promptly into the channels of the money market.
 The New York market has felt the benefit in addition of the deposit of gov- ernment funds with the national banks The event has proved that many of the interior banks to which were offered por- tions of the $26 GOO, 900 of government bonds did not avail themselves of the prof fered facilities and the treasury author ities have allowed the New York banks to take over the remainder thus un- called for by the interior. The causes Of the halt in the securities market in face of this relaxation of the money market are not clearly defined. Reports of busi- ness conditions show unremitting activity and abounding prosperity in all depart ments. It has been the common suppo- sition that the stringency in money was the only restraint on an animated specu- lation in stocks to reflect the rising earn ings of corporations. Some part of the explanation lies in the large extent to which powerful capitalists have accom-
 
 stringency in money. and are ,desirous or distributing part of the holdings to meet the demand attracted by the easing of money. It is evident also that the dimen- sions of the demand thus attracted are not important enough to afford favor able bass for such distribution. This con- dition is attributed partly to the wide in- formation of the extended position of the stock market of operators hoping to effect such a distribution of holdings, which begets an attitude of suspicion towards the market and part of the pub lie at large. It Is partly due also to the diversion of speculation to other fields, especially real estate. mining ventures and others, and to interest In fields of profitable business activity which absorb capital and attention. It is true also that the immediate relaxation of money does not entirely allay misgivings over re- duirements yet to be met The principal strain on the money markets Of the fall has to be met for the moving of the cot ton and corn crops In the case of the cot- ton crop the government report of deteri- oration published this week and which did not allow for the damage by the great tropical storm, has caused some revision of estimates of the size of that crop, which was reflected in the advance in the cotton market of the week.
 Some of the influence of more immedi- ate effect on speculative sentiment also have been adverse. The long drawn out negotiations over the disposal of the Great Northern ore lands to the United States Steel corporation resulted in some fear at one time of a miscarriage of that im- portant project Reports were circulated during the week with d semblance of authority that differences had arisen over the settlement of details. There was much speculative disappointment over the At- chison dividend which was expected with great confidence amongst many operators to be at per cent instead of the per cent rate. The action of the directors dashed the support of the speculative element which had looked on the Union Pacific dividend action as a herald of a policy of extreme liberaity in dstribu- tion of profits to be adopted by all rail- road authorities.
 Political uncertainties have come in for consideration and prevailing note of heed of control, and curbing of corporation powers in political discussion has had a disturbing effect on shareholders.
 There has been some improvement in the demand for bonds due to the large dividend and interest disbursement seek ing renvestment, but the demand has not reached the state of animation.
 United States 3s have declined A and the new As per cent on call.