The Birmingham age-herald., 1907-08-19
MARKET IN
 WEAK CONDITION Successive Waves of Liquida-
 ton Are Disastrous PANIC HAS BEEN INVERTED
Enormous Losses Sustained by All Stocks Have Been Enough to Cause Financial Disaster, But
 Hope Still Exists.

New York, August 1S-The decline in prices, which has been in progress for some time past, continued during the past week, with many securities reaching their lowest quotations in years. Success sive waves of liquidation during the last few months have swept away the profits of years and have made the stock market extremely sensitive and vulnerable to at tack The contributing causes to the situation have been and are the fears of T further restrictive campaign against corporations by the next Congress and the legislatures of various states, high CT rates for money with reduced supply of available funds, apparent indifference to the decline in stock prices on the part of interests with large capital in vestments at stake, visible signs of weak spots in the trade situation and monetary conditions that preclude any hope of i'm mediate aid from Europe for American business enterprises or stock market oper- ations
 The week began with the market under cloud Liquidation had not run it's course. even after the 10 and 15 points decline of the preceding week. The heavy reduction in loans the previous Saturday hardly compensated for the large loss in cash and with another government re- port on the Standard Oil company, pub lished on Monday morning, Wall street began the week nervous and apprehen- sive Combined with this were the eX- pressions of a cabinet member concern ing the proposed plan of prosecution of corporation managers, who violate the law. As a result holders of securities did not know how long their shares would be immune from attack. Fears of further proceedings against corporations made the capitalists back of them indifferent as to the outcome and it was obvious that they were giving no support to the market This indifference was a valuable asset to the spectators for the decline and they offered prices down with continuing success.
 News developments helped to play into the hands of the element working for lower prices The strike of the telegraph operators, while not very disturbing to business, incurred annoyance, and the most was made of it as an unfaYorable incident. More legitimate, however, as ammunition for lower prices was the fall ire of the Pope Manufacturing company ana the apprehension of similar embar- assment in other quarters.
 An example of the state of the money market is given by the fact that tho Consolidated Gas company, which is dom inated by Standard Oil interests, was forced to borrow on one year notes, at per cent. A large amount of money was loaned for six months at per cent. Com mercial paper seems to be discountlng slowly and the banks reported many cli- en.s who seldom come to them for ac- commodations, rather maintaining re- spectable balances. but forced to borrow because of poor collections. On the other hand call loans were surprisingly low, but this reflected more the desire of lenders to keep their capital in hand. The shrinkage in stock has been suffi- cient to allow income yields in keeping with prices and with prevailing interest rates. Many substantial properties sold during the past week from $15,OOO0OO to S25 GOO 00O less in market value than on the first of August and prime railroad stocks at present dividend rates. have be- gun to return investors from 6 to ' per cent whereas they offered yield of but to per cent not so many months ago.
 Domestic money conditions have been somewhat duplicated abroad, the most striking example of this being afforded by the Bank of England's action in rais- ing it's official rate to AZ per cent. This was more remarkable, in view of the fact that it's reserves increased per cent and went tbove the figure of the year before. Prior to its recent advance the bank had announced it's refusal to discount for the open market at less than 4a per cent. The whole run of this plan appears to be to clear the Lon don field of the many finance bills which the joint stock banks have accepted 'n large quantities the past two months. and which were beginning to threaten the gold reserve of the Bank of England. Evidently that institution determined thNs year to take matters in hand early enough to prevent a recurrence of the gold exports to American markets, which resulted in such confusion in November and December of last year. Locally there is a disposition to rely on the treasury again for assistance, but 80 far that de- partment has made no sign. Meanwhile the New York banks are low in reserve. the interior is keeping up It's exchange against New York, and the crop moving season, which drains the reserve cities each year. despite the talk of ability of the interior to finance itself, is moving along to its flood.
 SPREAD OF MORMONlSM.