The Montgomery advertiser., 1907-11-25
INFLUENCE WANING
GOVERNMENT nOND ISSUE CAUsEi
 COMPLEXITIES.
O. Part of Banks the Prcpcsition te Participate h Issue We're Found te Effect Money
 Market.

. New York. Nov. 24-The announces ment before the beginning of last weeks operations, of the government offering of e50.000.000 of Panama bonds and of t100,00o.0e0 of one year three per cent treasury notes, the latter Tn denominations of $50 and muitiples, aroused bright expectations of decisive results in breaking the currency famine by the attraction that would be offered to hoarders of money of an absolute ly secure government obligation dur ing . period of distrust of usual in- vestment facilities.
 The good influence of the sentiment return of the complexities discovered in the working out of the project. Detailed information was made public of the amounts being subscribed by private capital On the part of the banks, the proposition to participate in the issue were found to affect the money and currency markets to some of mind in estimating the working out of the effects of the transactions.
 Meantime the inflow of gold from abroad continued in steady stream and large additional engagement con- tinued to be made to arrive at future dates. For the first time during the present movement, the Bank of France tuIuiSVc8 P0EL Ok huCSc SuPViICcs thc transaction being based on commercial bills of exchange. The new source of supply thus opened up is considered of great importance. Various indica- tions served to prove how far the general banking situation had been strengthened by the heavy withdrawals from New York and the forwardings of incoming gold as 1t arrived. Thus the reports of conditions of Illinois state banks in response to the call of the state auditor showed an increase of many millions in the cash holdings compared with the previous report in August. while outstanding obligations had been heavily reduced.
 The Canadian banks made reports in response to similar official call dur ing the week and these revealed like showing which proved the large drain from New York to that destination with an accompanying scaling down of loans on call without the dominion. largely placed in the New York stock market. Bankers are awaiting the next call from the United States con- troller of the currency. the usual period for which Is now passed. There Is a growing conviction that response to this call will show the general banking position so fortified by the strong current of cash which has flow ed out of New York and from sources IHdL He IectlHk CI SusplClou anu distrust will quickly die out. A prompt resumption of normal bank ing conditions will be looked or as & sequence.
 The weekly bank statement of the New York banking situation. Loans contracted for the first time since the crisis developed and the small cash decrease was evidence that the con- ceaied drain on the banks had come to an end.
 The stock market was under inter- mittent pressure last week which was severe in spite of stocks and at inter- vals of time.
 At other times, the market showed symptoms of resiliency which were slight however, and attributed in large part to covering operations of profess sional bears The weakness was generally accredited to a resumption of iiquidation of kind which was with held from the market during It's period of demoralization by the powerful in- fluences and resources of the interest ed parties, but on condition of closing out of accounts and pay of indebted ness as soon as the market reaches ordinary cohditions.R The issuance of clearing house certificates has brought the loan ae- count of the banks under a scrutiny free from all collateral Influence and fmpaftlai Tn US TetOrmS. The result has been the exercise of discrimination against some existing accounts which exacted their liquidation on forced terms.
 Maturity of time loans on which re- newals were refused was another fac- ter in the urgent selling which ap- peared in individual securities, both in the stock and bond list. The clearing up process was an inevitable after ef- feet of the turbulent events which had preceded 1t and such operations are to be interpreted in the light of those past events rather than as reflection or currency general conditions 4