The Montgomery advertiser., 1907-12-16
FINANCIAL nrvIEws.

New York. Dec. is--Last weeks nn- anciai markets reelected one of those
 reversals of movements by which the Limitations of the existing conditions
 became defined. The reaction was ac- cepted as a demonstration that the re- covery had adequately expressed the tfnprovntknt in conditiofs, and .ifi fact,
 might be regarded as ruling beyond
 that point. The later stage of the re-
 bound in prices was due obviously to
 the needs of an uncovered short inter-
 est and with the satisfaction of the
 need the market for securities lacked
 the success of these demands.
 Besides the natural force or reaction
 from the firat rebound, there was evid-
 cnre that some of the factors which
 had been counted upon to sustain this
 recovery had turned out disappointine.
 The most conspicuous of these elefents
 was the decided stiffening of the call
 money market and the tardiness of the
 expected relaxation in the general
 money stringency This ultimate our.
 come Is so certainly indicated by all
 prior experience of money crises that
 much of the recent discussion had run
 to possible measures of relief of future
 currency imitation and redundancy of money markets. even while New York Clearing House banks were at the low
 est ratio Of reserves to deposits In their history anu tne SleaTiHB 11OucC SOA tificates continued to effect settlement of balances between banks all over the country.
 Last week saw the growth of a con yiction that too much haste was being made In the anticipation of the passing of these abnormal conditions Less confidence was felt that the resump- tion of cash payments by the banks and the re establishment of tho credit situation could be effected before the end of the year. The demand from the interior for currency was not much Abated, in spite of the great apparent great strength of reserves of interior banks disclosed by the responses to the Comptroller's call.
 The realization was brought home to the financial community that very heavy credit requirements must be met l for the end of the year, including large mercantile borrowings to insure the continued flotation of bushes activf- | ties. while a premature assumption was beinb made in the stock market | that the expected reflux of funds to normal banking channels would be in | time to meet there requirements. The New York banks acted on the I evidence thatsteps were incumbent up- on them to repair their position as necessary preliminary to the re-es- ! tablishment of normal conditions in the country. The contraction of loans in pursuance of this end ran up the weeks money rate and turned prices | of securities downward.
 It is a fact. however. that the at | traction of the high money rate has in- | duced some lending of interior funds ir | New York for the first time since the | crisis developed. Another active fact or towards checking the rebound in the l markets was the question of dividend reductions which was brought forwarc | by the weeks events. The shutting | down of the Amaigamated Copper | Company's mines. called attention te | the snrinkage in productive output oi l that Industry and emphasized the CT. | feet of reports of progressive decline | in the iron output.
 Railway trafic officials also gave ut, | teraffce to their discovery that beyond i the traffic now moving on old orders | little new is in sight. The declaration | of script instead of cash dividends bs
 the Western Union and the Atlantic
 Coast Line, opened the field of conject'
 ure of similar results to How from ths | trade reaction.