The Montgomery advertiser., 1907-06-17
FINANCIAL REVIEW.
Operators are Abstaining from the
 Stock Market.

stock Market.
 New York. June 16-The financial markets have begun to canvass the obligations which must be met m the coming half yearly settlements and to take account of the resources which will be available.
 The abstention from any active par ticipation in the stock market which has been increasingly manifest is prompted to a large extent by caution, owing to the money outlook. The re- quirements to be met this year are nn- usually heavy and the banking position is below the average for the season The dividend and the interest dis bursements on July l was very large as the halt in business activity has not yet involved reduction in the rate of disbursement on securities.
 The position is complicated to some extent by the decision of the New York city authorities to sell s29,o00,O00 of bonds during the present month. There will be due on July II an installment of subscriptions for new Northern Pa cific stock, which will call for over $11 ,000,00
 The condition of the New York Clearing House banks. on which the principal burden of the settlements will fall, has been declining rather than improving. the surplus reserve of those institutions now standing at $4,5l4,s25. compared with $7,073,375 in this week year ago.
 The compilation of the reports of national banks throughout the country for May, which was made up at Wash ington last week and revealed the ex- tended credit position the country over.
 Compared with the preceding state ment on March 22. loans had expanded some $95. .299, 693, while the compari-
 .xrt% i ..9 l1r -t,.N vaA o growth in the loan item reaching the formidable total of S424,253.613. For the eleven months period the national banks had added but $4O,35S,5 to their cash holdings. and of this amount, $35,371,597 had been secured in the sixty days preceding the statement.
 A comparison of the changes for the sixty days in the items of the New York bank statement shows that the clearing house banks in that time had expanded loans $74,S19,100 and cash holdings s32, 2,752,300 thus accounting for a large portion of the changes made by the national banks as a whole The inference is plain that the interior banks were recalling credits placed in New York for use at home, while the New York banks were called upon to replace the loans thus recalled.
 The decision of the Secretary of the Treasurer to recall 30,0o0,o00 of Gov ernment deposits on July 10, will de- fer that operation until after the pay ment for redemption of the maturipg s per cent bonds on July l, which the Treasury Department estimates will amount to $36.000,000. This leaves a margin of possible benefit to the money market of $6,oo0.000 when the opera tion is concluded. but the usual de- lay in final presentation of Government bonds for redemption is expected to postpone the full effects of the bond redemptions on the money market
 Efforts at recuperation in foreign money markets, especially in Paris, have placed a burden on New York money markets by gold withdrawals and have helped to deplete the re- sources of the New York banks
 The gold export movement was inter- rupted last week, but the sustained firmness of foreign exchange led to its redemption at the end of the week.