The Birmingham age-herald., 1907-04-14
BANK STATEMENT
 SHOWS EXPANSION Largest Loan Account in His tory of Clearing House RENEWED L 10 UlDATE0N Evidence of Activity of Bear Opera tions In Selling Movement Is
 Found In Hasty Covering
 of Shorts.
RENEWED L UlDATEON

New York. April 13.-The bank state ment reported today showed a larger eX- pansion in the loan account than has ever occurred for any one week in the history of the New York clearing house. Growing misgivings over the adequacy of the additional resources, which have re- gently loemed into the money market, to meet the waiting demands for credits, and which have been prevalent in the stock market all week, became acute and stocks were thrown over with precipi- tate haste. Evidence of the activity of bear operators in the selling movement was found in the nasty covering of shorts in the final dealings. It was apparent, however, that the renewed liquidation of some importance was going on. The huge loan expansion was accepted as a dem- onstration of the dimensions of the heavy requirements which stand ready to rush into the money market to take up any available resources offered there.
 The weeks loan increase of sS6 ,96S, 300 compares with a previous record of $34,- 4I4,O00 for the week ending January 21, l90o, when great syndicate borrowings were the influences in the money mar ket. Analysis of the statement of the individual bank ret"@ns in this weeks statement reveals iYo of the large banks have increas, ss in the aggre- gate upwards of $2S, and the we'll known financial statc1.en's of some of these banks make it evident that the payment of $24OO0,00O of subscriptions to Great Northern preferred stock was in voved in this portion of the loan expan- sion. Bankers report also that with the fall in interest rates interior banks are itc f,Ia wi local banks are called upor to take up.
 The S7429,0 gain in cash reported was largely in excess of estimates and modi- fled the effect of the loan expansion on the reserve requirements and on the sur plus. The severity of the decline in prices gave rise to some revived rumors of necessary liquidation in consequence of damage inflicted by the panic break in the mark. The Pacifcs Reading and Coppers were the greatest sufferers in the decline. and showed extreme losses of 3 to points. The closing tone was unsettled in spite of some rallies on cov- cfing by shorts.
 Bonds were also weak. Total sales par value. st.034,000. Dealings in stocks have lapsed into professional hands to a large extent this week, and the market has , grown quiet and dull as vas generally expected Transactions have been largo lY in the nature of testing operations by the professional contingent to detect the current of the market. These trarsae- tons have attracted no important out side following and have been shifted from one side to the other of the ac- count. This was the cause of wavering and uncertain nlor emept of pricer. Opn- ion is greatly divided as to the future course of financial and industriel affairs.
 Most of the questions involved in the solution of the problem center about the ,l-1 ,1T fJ,.1 NftNox centers money has been flowing back into banking reserves and there has been be- sides large repayments of credits enl ploXed in the April settlements. The re- duetlon in the Bank of England's dis count rate from to 4l5 per cent was re- ported as the conclusive index of the relaxation of money which has been fol- lowed by the money and discount rates in open markets everywhere. Our own money markets clearly are enjoying the benefits well as of the extensive re- lease of credits tied up in securities hold ings effected by the stock market liqui dation the effect of this favorable devel- opment of the security market. however, has been modified by the question of it's adequacy to meet the requirements hang ing over the money markets. On the meaning of this requirement. is felt to de- pend the averting of the forces of reac- ton in business and industry which the fall in the stock market was regarded portending The doubt felt on the sub ject is fostered by the obvious limitations of the easier money condition to a field more or less circumscribed. Money on call at the stock exchange has fallen to almost nominal rates for time loans on stock collateral have yielded materially owing to q marked elimination in the demand for such accommodations, as wels as the substantial increase in the suppl of funds offering. In other departments the rate of return on credits showed a wide discrepancy. The rates on prime mercantile also fail to show relaxation below the per cent rate or above ruling for some time past. The signs of relax ation in time money has given rise to a prompt revival of reports of note issues by railroad companies to finance inme- diate requirements Large payments re- mair to be made in subscription to new securities already issued and there is a large volume of securities authorized and awaiting only an improved money posi- ton to be issued and offered in the mar ket Evidences of revival in the bond market gave hopes of an effective absorp-