The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-27

The money and exchange markets were
nominal as usual ON Saturday The I'm
perial Bank of Germany made strong
return and the Berlin discount rate was
easier. Total sales of bonds $l.560,000
The stock market for the week has
been highly professional and showed the
effect of the languid speculative interest
on the part of amy large part of the
general world OF capital
The volume of dealings fell to the low
est of the present year. EARLY in the
week fluctuations had become marrow and
sluggish the current of prices shifting
constantly under the almost exclusive op-
erations of professional room traders. who
did not venture to carry prices far In
one direction. lacking the advantage of
. any wide market as a medium to carry
their speculation. The result of this state
of things was discouraging to the hold
ers and a fall In prices was the natural
result Later there was good recovery
and evidence was apparent of resump-
ton of benevolent control of the mar
ket by protective measures on the part
of bankers and speculation organizations
with recol1rses.
The group of coalers was the lever
employed to check the decline and to
lead the recovery, dealings in Reading
especially being on an enormous scale
and sensational advances being made in
the high priced volaItive members of this
favorite speculative group. The move
ment was accompanied by confident pre-
dictions from managers of the specula-
tive campaign of ultimate prices which
they believed would be touched by stocks
in this group, in a manner made familiar
by past campaigns I'm Reading. The sue
cess of these past campaigns and the
prestige thus gained by their leaders in
duced considerable speculative following
for the movement on the recovery. The
favorable position of the coalers by rea-
son of the three-year labor settlement
was cited as ground for the advance.
There was discussion also of the posi-
bility that the railroad companies would
be led to divest themselves of their own
er,ship of coal mining companies on ac-
count OF the tendency of recent Judicial
decisions and of intended legislation as
we'll as by the disclosures resulting from
the coal roads inquiry.
The exposure of grating practices
among Pennsylvania officials brought out
by this inquiry were of notable influence
In the depression and paralysis of specula-
tive interest in stocks early in the week.
The effect on public confidence in the Sc
curities of the railroads was feared, and
also the likelihood that agitation against
corporations would be stimulated and
cause damage to the value of their secur-
ll1tS. w Htn pIlCtS lulntu uPNoiu PACANo
SIGNAL sentiment adopted the view that
the exposure would work the cure of
harmful practices and benefit the earn
ing power of the companies. Sentiment
over the money outlook was in similar
state of f1ux, and came to conclu-
sion of hopeful view.
The first incident to induce this con-
elusion was the news that the Pennsyl-
yania had placed large bond issue In
the Paris money market. Pennsylvania
stock has been under pressure for some
time past on account OF dts huge borrow
ing operations But the fact that French
capital resources were opened to 1t was
accepted as hopeful augury OF the
chances of resort to this great reserve
OF capital for the enormous projects OF
expansion and extension of enterprise in
contemplation in all lines of American in
dustry. The effect was heightened by
later reports that fire insurance COM
panies had prospect of securing $2o,0-
100000 loan in France to finance their San
Francisco losses. Such an arrangement
would serve to keep off the morket secur-
tiles in the reserves of these companies
which otherwise might have to be sold to
pay losses.
The obtaining OF credits abroad also, 1t
was hoped. would lead to a renewal of
gold imports to New York, and to the
further replenishment of bank reserves
for the strain of the fall requirements on
money markets. The entire composure
with which bonl,ing operations were re-
sumed in San Francisco was another re-
assuring factor of emphatic influence. Not
only were the deposits and discount banks
free from any semblance of run, but
the Withdrawals from savings banks
proved moderate, and resources on hand
superabundant to meet requirements. I'm
der these conditions there can scarcely
fail to be large and early return to
eastern banks reserves of the large sums
piled up in San Francisco as a precau-
tion against emergencies. The Importance
OF these additional. resources for the local
money market is kept prominent by the
maturity of subscriptions for securities Is
sued from time to time and by the FUR
Their issues still in prospect. Even the
great Pennsylvania borrowings, although
evidently supplying the immediate needs
for carrying on the great improvements
under way by that company are believed
not to exhaust the requirement Tor COM
Melting the work. Crcumstantial reports
Of an intended $50 100000 bond issue by
the United States Steel corporation for
completing the great Indiana plant met
with the official explanation that such an
issue if 1t Is made, will be some time IN
the future. Reports of S5O0OO,W note Is
sue by the st. Paul met with less quail
flied denial. although early additions to
ga initial resources are believed to be need
ed for the pushing of this company's Pa
cific coast extension. New York Cen
traits Improvement also admittedly re-
ouires large new capital resources.
PAYMENTS this week and next OF stock
and bond subscriptions include those by
Baltimore and Ohio, Delaware and Hud-
SON Chicago and Northwestern and the
PENNSYLVANIA s5O,OO0,O0O notes, calling for