The Birmingham age-herald., 1907-12-23
Bankers Look for Better Things
 Alter New Years
PUBLIC HAS LEARNED MUCH
Underlying Conditions Back of the Financial Stringency Are Now Bet ter Understood and All Have
 Confidence in re.

NeW 1O1h, DeCe1nT .lne nnancldi markets last weeb. b.cS largely con cerned with the cfc ations for the coming annual set>~eS IS and operations in securities were S the most part: in abeyance or es some depression. Transactions in were to a great ex- tent in profess hands and the pres- sure on the market was not acute, In spite of the fortifying process in progress by the banks. With the premium on cur rency persisting in New York and the out flow of cash to the interior still go- ing on. in spite of the period of the usual return flow of funds which go out to move the crops, the contention was borne home to bankers that the return of normal banking conditions was not to be looked for before the turn of the year. Since the clearing house banks have made up but a part of the deficit below the legal reserve held and still have large volume of clearing house certificates outstanding the imperative call to proceed with the work of recuperation was recognized. The heavy demands to be faced for the year end settlements emphasized this call. The money market was affected in con- sequence. call loan rates ruling higher. The time loan market continued almost nominal, the supply of funds in that de- partment being of the scantiest and there was no effective demand for mercantile paper of which an absorption is relied upon to carry over commercial affairs through appearance of large obligations.
 Public Learns Much.
 The week was notable for the important contribution in public addresses and of ficial reports from many of the best in- formed minds on financial affairs to the decision and elucidation of the causes of the recent crisis and of possible remedies. The effect has been q broadening of the general comprehension of the far-reach- ing underlying conditions which led up to the crisis and to relegate to their proper position of relatively less impor- tance some of the more violent manifesto tions in the banking and money opera tions which were symptoms rather than active melting causes.
 Andrew Carneges assumption that commercial crises are the outgrowth of inherent tendencies in human nature not to be confined by legislative restrictions was in practical conformity with the views expressed by William Sherrer, man ager of the New York clearing house, who declared that the great disturbance of capital caused by the war between Japan and Russia had been further accent uated by the earthquake and fire lass at San Francisco, while extravagant liv- ing and the disclosures in the manage ment of corporations had helped to bring about alarm and loss of confidence. The annual report of Comptroller of the Cur rency Ridgely was regarded as an illumin- ating opinion on the scope of the bank ing disturbance which broadened the field of It's causes far beyond the im- ly says:
 RidgeIys Views.
 '"The conditions which led to the panic of October and November, 1907, were not due to the lack of confidence of the peo- pie in the banks, but more to a lack of confidence of the banks in themselves and their reserves. Banks have been fearful that the reserve system would break down. In consequence 1t has brok- en down and the reserve deposits have been only partially available.
 By an analysis of the working provis- ions of the banking law which allows de- posits of country banking reserves in central reserve cities, the comptroller ar rives at the conclusion that country banks keep but per cent on hand in cash and of the country bank reserve deposits the city banks keep but 25 per cent on hand in cash. He argues, therefore that if there is reduction in the deposits of the country banks of sl5O,OOo out of $10,0 900, or only # per cent it calls for more cash or reserve money than has been kept on hand in the reserve banks for the whole $10,000,000 The conse quences of this condition are found in the returns of the national banks to the comptroller of December 3, of which the feature is the portentous withdraw al from central reserves and reserve cities for heaping up in the country banks.
 New York Banking Report.
 Another important contribution to the discussion of measures for correction was found in the exhaustive report of the special commission appointed by Cover nor Hughes to recommend the reform of New York bank and trust companies laws, especially in the reserve requirement up- on trust companies engaged in banking business Financial operators see with satisfaction way thus opened for cor rection of a situation that constituted the weakest point in the whole chain of the banking world when the strain was
 In it's immediate effects on sentiment re- garding the financial and commercial out look, ths comprehensive decision and frank expressions have served to deepen put upon it.
 somewhat the appreciation of the ex- tent to the disturbance and there has been corresponding growth of anxiety as to the amount of remedial work which must be done to restore conditions to their previous prosperous level.