The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-04-08
NO SURPRISE At
THE CASH RESERVE
Stock Market Yielded Ground
After the Publication
CLOSING TONE IRREGULAR
Money on Call Commanded Higher
Rates This Week Than at Any
Similar Date Within the
Past Thirty Years.
CLOSING TONE IRREGULAR

ana oil the reports Oh the known move
ments Of money which made their APP
pearanee yesterday The cash loss dis
closed by the bank statement of s7,9Oi2 POO
was about equal to the minimum esti-
mates of yesterday The considerable loan
expansion Of S7,205500 occasioned some
surprise
While the stock market of the week
has given no evidence of important liquid
ation ii was believed that d very large
transfer was going on of credits from the
local banks to interior and foreign len
ders. The stock market yielded ground
shortly after the publication of the bank
statement and receded from the vantage
point of some earlier advances. The clos
ing tone was irregular with evidence Of
some support here and there. The oc-
casion on which the banks showed a de-
felt in the surplus reserve was on De-
cember last. 1t was in the week fol-
lowing that the speculative activity be-
came most pronounced on the stock eX-
change, the aggregate sales for the week
rising to over 100000 shares with add
vanees Of from to points in such
stocks as Union Pacific, Great North
ern preferred, st. Paul and New York
Central, in spite of the continued strength
in the money market, which eliminated
in the last week in December in the
125 per cent money rate. The speculative
contingent in the market today were in
clined to make much OF the analogy
There are many rumors current in the
stock market also of large gold engage
ments for import to this center next
week. following the arrivals in London
Not much countenance was given In bank
ing circles to the supposition of large
gold shipments to arrive in London or
of the likelihood of securing large
amounts for New York Foreign eX
change here was firm today although the
Saturday market is nominal and the
quoted rates were considerably above
those of yesterday. Both Paris and Ber-
lin are looked upon as active competi-
tors for any gold supply in the London
market.
German and Prussan loans to the ex-
tent of $l40000,000 are imminent. Esti-
mates OF the Forthcoming Russian loan
vary all the way from S200000,000 to $780,,
000,000. The loans at the stock exchange
made on Friday carry over until Monday,
so that the call loan market of today
was merely nominal and offered no light
on the probable course of next week S
money market.
Total sales of bonds par value. $l,715,00O
Money on call has commanded a higher
rate of interest at the stock exchange
this week than in any first week Of
April for more than thirty years. The
result has been to paralyze speculative
activity in the stock market and to
chill the spirit with which the week open
cd nd which oar nripaE n charm
advance on a larger days business than
had been done for several weeks. The
stringeney in money has gained in
severity from day to day, instead Of
gradually relaxing, and has thereby dis
appointed the calculations of the party
which embarked in the speculation last
week. 1t was expected that Monday would
show the highest call loan rate with
growing relaxation thereafter On the
contrary the highest rate touched Mon
day was 10 per cent On Tuesday the
maximum rose to IL per cent, on We'd
nesday to 10 per cent, on Thursday to 80
per cent and on Friday to 81 per cent
Interest and discussion this week have
conferred on the money question to the
almost total exclusion of other stocks
The immediate cause of the stringency
is clearly enough traeeable to the heavy
demands upon the cash reserve OF the
banks. Large renittances have been
called for from interior points and from
the large banking centers on the east
ern seaboard. The immediate cash outgo
from the banks has been large enough to
deplete the surplus reserve and to eX-
haust the supply of loanable funds. But
deeper-seated causes are sought for the
present scarcity of available funds and
the principal of these has come to be
IL I'D IN hn IA
mands for new capital outlay in the last
three months. An effect was early pro-
duced on the bond market, which be-
came torpid and slow from depletion. One
effect of this was an abrupt drop in
the par value OF new securities offered
during March to 500, 100000 compared with
a volume of $277,600 during February. An
other effect was the appearance in the
market of issues of short term notes by
railroad companies at high prevailing
market rates OF interest and secured by
the newly authorized bonds as collateral.
These issues were caused by the present
unfavorabe conditions of the money mar
ket and were designed to defer the flo
tation of the bonds until money condi-
tions are more favorable.
Large temporary note issues have been
made this week by the New York city
government WITH pHe Stilit puIpoSt.
The marketing of these securities is
withheld on account of the high interest
rates prevailing while the tie-up thus
involved is a prime cause for the scarcity
which marks the high interest rates.
The situation in the coal trade has had
its influence especially In the large ac-
cumulations that have been made in the
apprehension of n shutting off of output
by the strike. Trade continues very active
and makes large demands upon the money
supply. The money strngency has forced
down the rate of foreign exchange and
the relaxing tendency of foreign money
markets has opened the way to probable
gold imports. The extent of the relief
available from this resource remains UNI
determined The severity of the stringency
has been confined to the stock market
and the quality of the collateral has
played its part there. Stocks which have
figured in excessive speculative move
ments at extreme price advances are
Disseminated against by money lenders.
New demand for iron continues slack and
the coal strike is repressive influence.
Bonds have been duh and heavy in
tone.
United States old As declined Is the
new As and SIS coupon 4 and SIS regis
tered q per cent on call on the week.
Bonds.
L. s. refunding Is, registered. $500. to3s4
t. S. refunding rs. coupon ........... o3s4
L. S. 3s. registered ........,.........lo3l4
L. s. 3s. coupon .................--....Io