The Birmingham age-herald., 1907-07-15
HARD BLOW FOR
 BULL CAMP PAIGN
Crisis Occurs in Finances in
 New York
.DULLNESS IS PRECIPITATED
Leaders of Upward Movement in Stocks Started Their Work Pre- maturely and the High Prices
 For the Week Declined.

New York, July 14.-lhe Week Just past was marked by the occurrence Of several events in conjunction which constituted something like a crisis in financial affairs and the consequence was an upset of the organized specula- tive movement for a rise in prices and sharp reaction. This movement was entered upon previous to the July 1 set dement's and had the encouraging cir cumstances to go on that the supply of stocks in the market for some time pre- viously had been very scanty and ttlat professional operations to force lower prices had met with little success. It was also hoped that with the disburse- ment of an unprecedented sum in divi- dends and interest in July, the long dormant investments demand would re- vive and a medium be afforded for the digestion of speculative profits. The market campaign was conducted In a famboyant style and by methods of newspaper advertising which kept it open to suspicion of artificial manipu- lation to lift prices in the market.
 The incident of the failure of the New York city bond offering previous to the first of July dash ed the conn- uence m the early aWakenlg or lnNeSI- ment demand. The convergence of some extraordinary demands on the money market during the second week of July also gave warning of diff faculties to be encountered In the car rying out of the speculative campaign. These warnings were dsregarded, how ever and the market operations for the support and advancement of prices were carried on up to the very thresh old of he of Ina nlx ing resources. At that point there was an abrupt relapse which served to dash the speculative interest in the market and to throw it back into a condition of dullness and feeble and uncertain fluctuations
 While the meeting of the July 10 re- quirements had had an unsettling ef- feet on the market commitments, pre- viously made, the passage of that date is viewed with satisfaction. The con dition of New York banks the previous week made 1t evident that the events of last week must strain the available resources. It was not a surprise that the matured government bonds were slow in appearing for redemption and in fact up to this time less than one half of the $36,00O LOO outstanding at the time of maturity have been pre- sented for redemption. The with drawal of $50, 900, 900 of government de- posits from the banks on July -0 was only partly offset thereafter by the redemption operations. This tardiness in bringing into use so large a sum of available capital at time of famine of capital and of onerous terms for use of money is one of the anoma- lies of the present financial situation.
 The money difficulties were aggra- vated by the resumption of the Paris demand on New York for gold. wh ich
 
 week of $2.750,000 to that point. The further extent to which this movement might go is a matter of concern, in view of the present banking position in New York. If 1t be the purpose of the Bank of France to re-esta blish It's condition to the average of recent years there Is considerable margin of re- cuperation to be effected compared with last year. It's gold holdings last week were still $23,1S1O 900 less than a year ago, while it's loans were $51,- 157, ,000 greater and it's note issues $35,- 900, 900 in excess of those of year ago. The condition of the Bank of England likewise compares unfavorably with that of year ago.
 In view of crop shortage abroad, the great foreign banks are looking for ward to the necessity of large demands for foodstuffs imported and are anx- ious to fortify their reserves in prep arations. Foreign exchange in New York was higher during the week. Rates for time loans in New York have risen materially. The publication of the governments report of condition of cereal crops as of July 1 did not i'm prove the feeling over our own crop prospects. Winter wheat showed less than the expected improvement during June and the deterioration in spring wheat was a disappointment. The area of low percentage of the corn crop was partly offset by the increase in acreage and the consideration that 1ateness of the crop operated against the condi- tion showing, and left chances for im- provement as it natures. Much i'm portance is attached to the probability of frosts fall in the final outcome of the corn crops.