The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-11-13
MONEY MARKET IS
FACTOR IN STOCKS
Selling Seemed Affected Only
by Concessions
NO CASH IS YET IN SIGHT
New York Banks Are Said to Be Out
of Money Entirely and Trust
Companies Must Fur
nsh Relief.
NO CASH is YET IN SIGHT

New York, November 12.-The money
situation had some effect on prices of
stocks today. The determined abstention
from operations in the market which was
a feature of last week gave place to
some liquidation. AS the demand con-
tinued as torpid as last week, the sell
3 tng was effected only at concessions which
were noted in stocks where previous
speculation had been active The COM
polling influence in selling was the call
ing of loans necessitated by the deficit
in the legal reserves of the banks shown
by the Saturday bank statement. No
source of replenishment of cash is avail
nble yet and reduction of deposits by
scaling down of outstanding credits is
the alternative. Holders of security thus
called upon for repayment seemed re-
luetant TO part with their holdings and
their efforts TO secure fresh aeeommoda-
ton ran the money rate up to 20 per cent
carly in the day
The local banks were said % be out of
the money market entirely, and funds
> We're available only from the trust com
panies and out of town lenders The large
excess over the estimates over the loss
of cash by the banks disclosed by the
bank statement, may be due to the with
drawal of cash by the trust companies.
These institutions are under legal require
ment to maintain 4 per cent of their de-
posts in actual cash in their vaults, as
they have not been in previous years 1t
is believed that the bank loan contrac-
fl.. no-n
weeks has been taken over largely by
the trust companies. This would not be
an increase of reserves in this case in
the proportion of 4 per cent instead Of
IN the proportion of % as in the case of
the large house instructions. The string
eney IN the money market was aggravated
by the maturity of an installment of
about half the subscriptions at par to S25
100000 of st. Paul stock, which therefore
called for the provision of about St2 600 =
COO
Operators in stocks were small dis
turbed by the explicit assertion of the
secretary of the treasury, that he would
take no measure of relief for the money
market in present conditions the repetl-
ton of the announcement today was that.
after confident assertions were in crcu-
lation in Wall street, that early steps
would be taken to replenish the money
market in spite of the disclaimers of the
opinion is not united in field circles as
to the feasibility of the treasury meas
ures to give effective relief at the pres
emit time. 1t is recognized as out of the
question to bring about an easy condi-
ton In Wall street, except by carrying
foreign markets with this to a lower in
terest basis. Any marked relaxation in
rates here will lead certainly to an out
go of gold to assist the struggle of the
London money market to adjust itself
to the heavy coming requirement of the
year and settlements. The stock mar
ket settlement began in London today.
and carry over rates We're again stiff a
rate of per cent being reported at one
time. The rates for sterling exchange had
declined nevertheless, under the influence
of the stringent money market and free
offerings of cotton bills
Discounts hardened in London and Ber-
lin, but the Bank of England secured a
large consignment of South African gold,
newly arrived in London The decline IN
prices of stocks gave some additional
point to discussion of the adjustment of
the labor question. which is going on
either by voluntary advances by many
corporations, or by demands of labor o. =
ganizations. Not much apprehension was
expressed of strikes, in spite of the pro-
gress of a ballot reported among the Erie
fremen on the question of going out. The
reports of the prosecution in preparation
against the Standard Oil company, of an