The Birmingham age-herald., 1906-12-09
B|G DEFICIT IN
 NEW YORK BANKS Speculative Confidence Follow ing Precedent Keeps Up EXPECT TREASURY RELIEF
Acute Stringency Has Ruled In Money Market Through Week and Feature of Stock Market Has Been
 Stubborn Resistance.

New York, December S.-The bank statement not only reflected fully the loss of cash indicated by the weeks known movements of money, but more than made up the discrepancy in the loss re- ported last week, which was smaller than the estimates. Cash holders have fallen off SIP, 600, and the accompanying seal ing down of credits has amounted to only $3.So3, 800. The net result is deficit below the legal reserve required by $6, TOP, ,575, which is the largest deficit in New York reserve since the summer of 1893, when the endless chain drain on the United States treasury gold holdings was in oper- atfon.
 This compares with a deficit in the cor responding week last year of $1,246,525. Last year an animated speculation broke out at the stock exchange in the week following the deficit. It is this precedent which plays an important part in keeping up speculative confidence in the present market.
 Prices wavered and yielded slightly to- day after the bank statement appeared but recovered nearly all the declines be- fore the trading ended and the closing was only slightly irregular.
 The Hill stocks were conspicuously weak and the Hartman stocks showed some special effect of judicial proceedings against the company in Utah. There is no money market at the stock exchange on Saturday, loans made on Friday car rying over until Monday. The effect of ha ha nlx ct al O timent therefore. Sentiment on the sub ject was modified by the firm confidence that some action would be taken by the treasury department of the relief money situation in the interval before operations are resumed in the stock market Monday
 Movements were reported to be in pro- gress in mercantile quarters to urge the secretary of the treasury to release gov ernment funds to the money market for the relief of restrictions said to be evil dent on commercial operations by reason of money scarcity. Total sales of bonds par value, $95O00O.
 Acute stringeney has ruled in the money market all through the week and the money position has occupied attention all most to the exclusion of all other topics, although there have been several develop ments of importance. Call loans have risen above 20 per cent every day of the
 
 has been it's stubborn resistance to the conditions in the money market. prices yielding slowly and irregularly.
 The undertone of firmness in the market has been due 10 the sustained confidence fin underlying conditions of prosperity throughout the country The technical position in the stock market also is re- sponsble to a large extent for the firm ness of the resistance to the money strin- genoy. It is the common assumption that the principal speculative holdings in the market are by capitalists of large re- sources and important and widespread affiliations. whose position is fortified by credits other than those subject to the vissictudes of the day to day money market.
 + is assumed that the high rates paid at the stock exchange from day to day are paid by smaller operators less forum ately situated. or by the large operators on a portion only of their borrowings on which the average cost is reduced by loans on call at lower rates The high ties for call loans have been the subject of much discussion and some severe criti- cism accompanied by charges of manpu- lation of money and of artificial rates for effect on sentiment or for other purposes