The Montgomery advertiser., 1907-06-24
FINANCIAL REVIEW.
French and Russian Political Troubles
 Are Reflected.

Are ftcutCteus
 New York, June 23.-The securities markets of the world were heavy and apathetic during the whole of last week, prices fluctuating feebly in eith- er direction. There was evidence Of Iiouidation but demand was prostrate and no power of recovery could be per- ceived.
 The strain of the semi annual money settlements caused some anxiety and markets evidently are awaiting the passing of that critical period. The money situation abroad Is the occasion of even greater anxiety than that in this country. The position abroad however, is directly reflected in our own markets by the withdrawal of gold from New York to build up the reserve in Paris.
 The motives of the French demand for gold are canvassed with interest. One obvious motive Is the purpose or the Bank, of France to recoup itself for advances made to other markets during the strain of last fall and winter. Many millions of discount bills were taken in the London market by the Bank or France to mitigate the strain there for the safeguarding of the financial posi- tion of the world which would be af- fected by any troubles in London.
 There are many large French ad- yances made to the Berlin market also, Meantime trade continued very active in France and the French bank found itself many millions below the gold holdings of a year ago while its loans and note issues were much greater The sustained rates for money in Lon don have enabled the London banks to shift the French demand upon New York The persistence of the French demand gives rise to fears that po- ltical causes in addition are dreaded The popular upheaval in Southern France over the discomfort of the wine growers and the overturn of the Rus sian parliament are regarded as con taining the seeds of danger for the French financial position. The semi annual settlements in Berlin are ad- mitedly heavy and an over-extended position there is dreaded.
 .. Extraordinary demands are made also on London so that special facili- ties offered by the Bank of England for gold shipments have started gold exports from New York to London direct. The official discount rates maintained by the great foreign banks, 4 per cent by the Bank of England, i-2 per cent by the Imperial Bank of Germany, and 3 1-2 per cent by the Bank of France, are higher than at this period for many years past and are the index of the strain upon money sources.
 The foreign exchange at New York is kept up to the gold export by these forces and New York bank reserves are being forced downwards to the vanishing point for the surplus. The July 1 requirements on the New York money market are sufficiently onerous to make 1t clear that funds for any speculative movement In the securitte1 will be lacking, pending the prepara- ton for these requirements.
 The fact that dull neglect instead o active weakness is the. feature of the New York stock market under these circumstances Is proof of how mucf has been effected already towards tho completion of the liquidation necessary to anticipate the conditions. Appear ances of stocks show the same unre' sponsiveness to current developments which seem to show a check to domes tic trade.
 The backward spring has resulted 1T some accumulation of mercantile stock: and orders for future needs are affected Axytn