The Birmingham age-herald., 1907-11-11
Bank Statement For the Week Is Given Very Favorable
 Interpretation
$25,OOO,OOO MORE IN GoLV
 OH WAY 10 AMERICA
Demands Upon European Finances Have Been Heavy, Causing Ad- vance in Discount Rates.
 Betterment Certain.

New York, November 10-The most eventful week in the financial history rof the present generation came to a close son Saturday, with conditions much clearer than a week before, but with some clouds still hanging over the financial horizon. The previous week had closed with the disouieting announcement that the New York reserves had lost 80, ,O00,o0 in cash sn spite of deposits by the government during the week of a nearly equal sum- representing a net cash loss of soo'Voo'ooV' The bank statement Of yesterday changed this situation. While 1t shoWs R nominal decrease in required reserves of S30S5,S0O, more than two-thlrds or this decrease is due to the reserve re- auirements caused by increase In ue- posits because of the taking over of loans from the trust companies by the oahks' Moreover, the actual cash loss of S45l5'oV is due to the system of averaging ac- counts for the entire week, including several days before the arrival Of the new gold. Unless demands from the country are very heavy next week the
 
 offset the loss of cash last week and make a creditable showing for reserves on Saturday next.
 UnfavorabIe Start.
 The week began on Monday with a feeling of. grave doubt as to the future of the two trust companies which had been subjected to severe runs. The pos sibility that they might go down and drag with them much of the financial structure which still stood erect, kept MT. Morgan, the trust company presi- dents and other financial leaders in all most continuous session until late Sun day n'orning and again OF Wednesday until 3 o'clock In the morning. When 1t was finally announced early on we'd nesday forenoon by President King or the Union Trust company, acting as a committee of the trust company presi- dents. that the management of the Trust Company of America and the Lincoln Trust company were to receive all the assistance they required in return for depositing the majority of their stock in the hands of the committee. the sit uation cleared, a large degree of conf dence returned and the stock market ad- vanced generally from to 3 points. It was felt that the danger of a general crash in New York was over and that tho sursine waves of the storm would gradually subsde.
 Demands on Europe.
 The restoration of comparative secui4'S in New York was obtained only by de- mands upon the money markets of Europe which created a tension not before ex- perienced since the Boer war. Indeed, the Bank of England, in order to protect It's gold resources, raised its discount rate on Thursday to per cent, rate Whlch had not before been faced since 1873 The Rank of France raised it's rate for dis count to per cent, the Bank Of Belgium to per cent and the Bank of Germany at a special meeting called on Friday fixed the unusual rate of 1s per cent. It is not surprising that these precautions were taken to protect European bank re- serves in view of the fact that nearly s50O0O 00O in gold was engaged by Ameri- can banking institutions within less than two weeks The first arrival of the yellow metal came at the critical moment when the trust company situation was unccr- tain on Tuesday. Then came smaller con- arguments on Wednesday, and on Friday the delivery of 900 by the Lusitania.
 Favorable Time.
 The demand for gold from Europe came at 4 favorable time in some respects be- cause of the outward movement of Amer ican products of which the leading ones are cotton and wheat. The fact that Eu- ropean bankers declined during the sum- ner to accept American finance bills be- cause they already scented the storm made the demand upon them more sud
 tto aaa American bankers had found it necessary at the present time to buy cotton and grain bills to cover previous borrowings finder the actual conditions Europe must nav substantially in gold for the balance of exported products which is being ere ated in favor of this country by every hale of cotton and carload of Wheal nlaced on shipboard for export. The cot ton movement has been a good deal con- gested by the absence of small bills IT the southern banks, but everything pos sih,a is heinz done by the Secretary Of the Treasury and New York bankers tt aid the southern banks in meeting the sit ,ation. The same is true in regard tc the movement of grain which has thus fal heen more easily handled at Duluth anc otber northwestern points with the aid oi tha western banks than has the cottor movement.
 Currency Sent out.
 New Workers are sending forward to tht wast and south all the currency they car snare especially to those points where d., their judgment it is most needed. Th' premium currency .S which a.' rose s,assn hsl | aIosad somewhat lower, has had curiou! essect upon exchange and the price O United States bonds It has ,d disturbed a,sd tn' m calculations based upon gold parties .,a, O a~ohange and has made 1t possible to pay higher price to get gold and to acquire bonds as a basis for circulation than if nc such premium prevailed. ,.,o
 one of the favorable signs of the situa
 ..,s far is the relatively small mum ,Ier oe failures of national banks as com pared pal with the record of 1883 ssaos At t. tha tn t,,,,a 7s national banks suspended in td liilie ,oontb of July and 63 additional il Inna and August, while during the frs eight @ months of 1873 the number of sus pensions of state and private banks wa ns Tn the present crisis the number
 ...,., hank suspensions reported doe