The Birmingham age-herald., 1906-12-06
MONEY STR|NGENCY- CAUSE OF SELLING Market Strengthened by Report
 of Treasury FOREIGN MONEY EASIER
The United States Can III Afford tc Disturb Financial Conditions In Europe-A Remerdy is Sue-
 gested By Secretary.

New York, December 5.--The stock mar ket struggled with the money stringency today but reflected clearly the difficulties of the situation for spectators carrying stocks with borrowed money. Loans were called from time to time on a large scale by the banks to reduce their deposit lia- bilities in the measure of heavy drains that were making inroads on their cash reserves. Occasional liquidation was forced by this process.
 The appearance of the annual report of the Secretary of the Treasury was the signal for comprehensive recovery of declines leading to a halt in the market at about last nights level The recovery was based on the assumption that the Secretary stood ready to take steps to relieve money stringency in accordance with strongly expressed views in the an nual reports of the duty incumbent on aim to deposit in the banks as much as pan possibly be spared of the surplus funds in the treasury, If business condi- tions require it. though it becomes nec- essary to pay the current expenses of the government with checks on depository banks"
 But while this language was accepted as an earnest of early action for the relief of the money market, the relief was not announced and the calling in of loans was an actual situation. The fact that money conditions abroad also began to Tighten again was regarded as an addl- tional factor in favor of probable action by the treasury department, as the Secre- tary was almost us emphatic on the necessity of, aiding to prevent hurtful strlngency abroad as al home Much in terest is attached to the passage in the report which said
 "The United States can III afford to dis turb financial conditions ill Europe and If necessary to prevent it, the present head of the treasury department would not hesitate to make deposits in national banks on condition that the banks in turn deposit an equal amount abroad" '" This was interpreted as an announcement that the benevolent attitude of the treas ury department towrds the import of gold might be conversely exercised on oeca- sion towards the gold export.
 That the course of money in New York and the resultant effect on exchanges has been tending towards the further with drawal of gold from London is the fear of the London market, and this is regard ed as preciuding any relaxation in the money situation in London before the end of the year Not only is currency going from New York to San Francisco to move tbe fruit crop and to New Orleans to move the cotton crop, but the drop in New York exchange at Chicago to dis count, again marks recurrence of de- mand from the west in spite of the high ruling rates for money in this market
 Customs collections are running very large. The government receipts in New York from that source yesterday amount cd to $1 1,2S9. .6j6. The loss of the banks on sub treasury operations since the last bank statement now amounts to $5, 634 .000.- 0O0 The action of the banks in calling loans needs no further elueidation. New York Central was temporarily strong. on the increase in the dividend rate. which conformed to expectation.
 lntmations of additional capital issues by Atchison. and Norfolk and Western foreshadowed the future requirements from this cause on the money market, whicl are expected to grow. The urgency with which new capital continues to be sought in spite of the difficulties from one market gives an impression of the undiminished confidence in the permancy