The Birmingham age-herald., 1906-12-10
The Money Market.

Henry Clews in his Wall street letter of Saturday says:
 Secretary Shaw's efforts to relieve the financial situation were disappointing and had practically nc effect upon either stocks or money. The latter continues to command almost exorbitant rates on the stock exchange, and there is little pros- pect of substantial relief until the mid dle of January Secretary Shaw has agreed to release $12,00O0o0 on December b in anticipation of interest payments; but this is a mere scattered trif1e, and it is expected that he will make further efforts at relief. Since the treasury is steadily accommodating funds, owing to heavy receipts, the secretary is justified in counteracting-by all legitimate means the injurious operations of our present treasury system. The facts, however, are that in spite of the enormous increase in the supply of money bank reserves are exceedingly low, and In addition to treas ury absorptons the interior Is again mak- ing heavy demands upon the New York banks. It is true some of the interior banks are lending more freely in New York, but the one movement seems to be offset by the other; and unless there is a sharp contraction in loans this weeks bank statement must show deficit in surplus reserves There has been some talk of renewed American purchases of gold in the London market. Such reports, how ever, are premature, and gold shipments will surely meet with renewed resistance on the part of the Bank of England, not h tan rppnntlV GtranRfhRnp6 position. The scramble for gold is not con fined to New York, but exists in all the principal money markets of the world so New York will only be able to draw fresh supplies at the expense of unusual press ure or injurious rates of interest. Both the Bank of France and the Bank of Eng land lost gold this week.
 'The general outlook remains un- changed Business is active in all parts of the country and speculation is forum ately restrained by the unusual rates for money A check to the mining specula- ton was one of the favorable features. Prices of commodities are high and seem likely to so remain, in view of rapidly in- creasing costs of production. There are, however, no signs of any cessation in the demands for merchandise, and sup plies generally are light. Our iron and steel trade continues to surprise even the most optimistic by it's activity and strength When the limit of activity and anvancing prices will be reached, no one can determine. A good many shrewd and experienced observers are of the opinion that we are on the verge of recession,s Some, however, are confident of another years good business, and point with sat isfacton to the unfuilled prophecies of reaction which have been current for year or two In my own opinion, if se curities and money could only be restored to a more normal basis, allowing for the fact that we are now on higher level than five years ago, we could feel prac- tically assured of another twelve months of good business, provided no crop disas- ter intervened. So long as the money sit uaton. however. remains as it now is, the cautionary signals must be kept prom inently In view. This is nnt good time to run into debt.