The Montgomery advertiser., 1907-10-27
THE STOCK MARKET

New York, Oct. 2e.-ouiet conditions rsiened throushout the two hours session rule of procedure here by which loans made on Friday carry over until the Monday of the following week, the immediate borrow direct influence of the money position was to that extent In abeyance. The market was not active, and the influence towards inss on margin was asserted with undimin-
 The tone of the market was regarded. nevertheless. as reliable index of the pre- vailing senttment over the financial posi- ton. The expression of increased confidence through that medium was unmistakable. Individual stocks. especially in the inactive list were severely depressed. The action of the market was clearly towards resistance to any elements of depression and the clos ing tone was stlIl frregularly strong
 The bank statement caused Inomentary wavering. report of 6 deficit below the legal reserve exercising an inevitable sen timental influence. In view of the extraor- dtnary events of the week. and the compn- cated cross currents in the situation the de- crease of less than s1s,0o0.o0o in the re- serve held was considered not important. The necessities of the situation and the courageous measures of relief adopted were explanatory of the $io,s6l,7oo loan expan-
 u was fortunate under the circumstances thaA the clearing house banks had started the $11,is2,s5o so that the wAeks heavy de- raands have carried the reserves only si,- 2s3,soo below the legal requirements, q made in many former periods of only com parative stress. It is notable also that the United States deposits included ia the state- ment are only s13.6is,50o greater than in last weeks statement whereas the actual addition of government deposits during the wek is known to have been much great CT.
 There is ruling in force In the treasury department never availed of by the clearing house banks permitting government depos- it's to be segregated from those against which cash reserve is required owing to the high grade of the securities required as collateral against such deposits. Under this the banks would be in possession, according to the statement of an actual surplus of slO,7Ss,so0. The principle Involved in the reserves by the banks Is tlsat of readiness for a sudden emergency against which there Is no prohibition of the use of the reserve even down to the point of exhaustion.
 The bank statement was regarded there fore as showing reassurfng degree of strength in the banking position. For the of the United States clearing house today to issue clearing house certificates seems to offer entire Security. By some accept for settlement of debit balances, the preser- vation Of the cash deposits from depletion is assured
 The determination of the New York saw ings banks to avail themselves of the per- mitted requirement. of sixty days notice of withdrawals forms another safeguard against a march of unreason in the hoard ing of the e0untry's credit bases away from use in time of greatest necessity. Finally, the inauguration ~of gold imports opens Q channel of replenishment of the basis of banking credits which promises effective relief. The joint effect of these factors was the feeling of encouragement with which the week closed in Wall Street.
 Bonds were irregular Total sales par val ue $2,2ss, 900. United State 2s, {resistered have declined 8, the coupons <, the 4s registered 8 E and the coupons per cent. in the bid price on call during the week.