The Birmingham age-herald., 1906-01-07

by the weight of realizing sales. There was an enormous absorption of United States steel, which advanced it to the highest record of the present movement. This was no great surprise as the heavy local movement of cash had confused the preliminary estimates of that item in the bank statement, the loss in cash running to $2l9s700 in place of the ex- pected increase of about that amount. Joined to the increase in the reserve requirements, the result was a shrink age in the surplus, but little over half a million dollars. The sterling exchange market also though nominal on Saturday was distinctly strong and the continental exchanges moved against London. There was a heavy withdrawal of gold from the Bank of England for shipment to South America. These developments add ed to the interest with which bankers are watching money developments on the side of the foreign exchange market The stock market, however showed late re- vival of strength and closed extremely active, but still irregular.
 Total sales of bonds, par value, $,- S45.0OO
 The weeks speculation has shown evil dence of a struggle with the difficulties of the money situation.
 The backing and filling of the money market under the influence of uneasi- ness gave way to a sharp drop on Thurs day afternoon upon the publication of the remarks of Jacob H. Schiff. pointing out the possible dangers of present financial conditions in words that were given sen sational significance. The inconveniences of the money situationanaturally gave rise to a great deal of discussion of it's prob able causes. The buying of deposits, es- pecially of interior banks by the offer Of interest rates on deposits during the sea- son when funds were in small request, throughout the country at large was held largely responsible for the piling up of ex- cessive reserves in New York banks and trust companies. The urgent pressure to employ these funds saw the cause for their placement In securities and specula- ton from which they could not readily be withdrawn when the demands for cir culation began to drain the revenues or New York by the withdrawal of deposits by interior institutions
 The money market condition Of the last sixty days Is pronounced in the emphatic terms of MT. schiff, nothing less than disgrace to any civilized country
 This influential fnancier's decisive fix ing of the blame for the situation in the inelastic currency system of the country, however has given a new course to the market of criticism. The abstention or the United States treasury authorities from measures of larger relief for the money market have been grievance in the prevailing discomfort of the situa- tion.
 While the belatest relaxation of money stringency has served to allay some of the disappointment of the earlier part of the week. there remains some anxiety over the extent to which the easing of the money rate may be expected to go.
 Shipments of gold to South America. and it is reported also to Mexico, reveal a potential command of New Yorks re- sources on the part of London.
 On the side of general conditions Of trade and industry, no large cloud ap- pears These conditions continue to af- ford strong support to speculative confi- dence, and have served to stimulate re- coveres from the depression due to the money market pressure, and have gwen short lived effect even to Mr. Schif -heralded utterances.
 Bonds have moved irregularly with some evidence of seasonable investment de- mand. United States bonds were all un- changed on call on the week.