The Birmingham age-herald., 1907-12-29
MONEY SITUATION IMPROVES SLOWLY Improvement Comes With Pain-
 full Deliberation JANUARY DISBURSEMENTS Will Be Record Breaking in Volume Amounting to Something Like
 $2oo, o,ooo, ,ooo-Railroad
 Traffic Is Off.
JANUARY DISBURSEMENTS
BY w. G. NICHOLAS.

banking and money situation is improv- ing with painful deliberation, but it is improving. New York, which was the first to be hard hit among the large cities of the country. is the last to re- cover. That is largely because New York is the chief reserve eity, and nearly every bank of consequence in the western hem isphere kept balances here which have been drawn upon steadily and relent- lessly to meet interior home demands.
 Neither the well being, nor the comfort of the New York banks, was consulted From start to finish the New York insti- tutions have been up against 1t. Not only have they been called on to face their own troubles and to shoulder part of the burdens of the rest of the coun- try, but they have been made the target for the indiscriminate abuse and crlti- cism, much of which was uncalled for and not little of which was based on ignorance and malice.
 Soak Wall street" has cen the slog- an of a great many of the com mentators and financial writers, as well as the politicians. Wall street, after all. is little more than market place, and for the last six months it's prices have been more truly governed by the laws
 
 modity market in the world. There has been a continuous pressure of securities, and the course of prices has followed downward trend just would have been the case in hay market, or an egg mar ket, or butter market, where there was an over supply of merchandise and an under supply of buyers.
 The chief difference when the facts and the philosophy are subjected to an an- alysis Is one of size. The New York ourities market is bigger than any market in the United States, but the same laws govern price movements as in the small est of markets, except that In those of lesser importance and smaller size manip- ulation is relatively easier
 Manipulation and sharp practice are quite as likely to prevail In the poultry market of Podunk as on the stock ex- change of New York. The latter pays the penalty of greatness by being shot at more frequently and with guns of larger calibre. Furthermore slump in the prices of securities on the New York stock exchange hurts millions of people, whereas a slump in Podunk poultry in- jures only few.
 At the present writing the entire body polite is suffering from the blows which have been mercilessly directed against the country's chief nerve center. Normal conditions must return to this much be-
 
 the country can be restored to health.
 Now, as for the last two months, the money market Is the issue of most vital consequence. As the clouds lift and the scene becomes more distinctly visible, people discover with something like d shock that the financial situation was more critical than they were able to ap- preciate during the season of greater danger
 The surgeons are even beginning to take off the bandages and remove splints and plaster casts from broken limbs In other month the patient can sit up and perhaps hobble around bit By that time the banks of the country may begin to do business again and commence the extension of legitimate credits.
 From most of the cities and large towns word is received hourly that they are ready to resume whenever New York Is. Indeed, there Is a disposition on the part of the outside bankers and business men to rub it into New York because it Is so slow in giving the word. The fact Is not lost sight of, however that before New York can safely throw wide open the doors it must wipe out a deficit of nearly S40, 900 In the legal reserves and efface s65, 900 in clearing house certificates That must be done before the New York banks can start from a safe base line.
 More than that, it is of knowledge here abouts that the government at Wash ington Is scraping the bottom of it's till, and will have to call upon the banks for money with which to pay current bills.
 Large sums will be needed around about the first of the yef.. and treas ury reports show the smallest working balance that the government has had In many years. less, In reality, than $1o,000,- 900. It will be seen. therefore, that the New York banks are not yet out of the woods, although they are in sight of thr open country and will be In free posi- ton in another 90 days
 The January disbursements will be rec ord d-breaking in volume. closely hugging S2OO 100000. That will help a good deal. There has been considerable cutting. but the pairing down in that direction will not sediously begin until the first and sec ond quarters of 1908. Earnings for 1907 were not tremendously reduced until a month ago or thereabouts. The figures from now on will tell a different story.
 It is urged earnestly by the hopeful ones that the great decline which has taken place in stocks and bonds repre- sents the full dlscounting of all that species of misfortune It will be we'll if this hopeful view finds fulfillment In the facts as they develop.
 The bearish element holds to the opinion that although there has been terrific slaughter in prices, the market cannot stand against realization. and that when revenues begin actually to fade away there will come another break in quotations
 This has been about as blue a holiday season as Wall street has seen since 1893. Practically everybody has been hurt, and there Is no pretense at concealing the fact The Christmas and New Years distribution of bonuses was cut down a- most to zero. There was very little to pass around in the way of good will offer ings.
 reduction of 5000 GOO 000 ito seoO0. .o0o 0f0 in the selling value of stocks and bonds in single year left Wall street prostrate. The loss did not fall on Wall street alone, but the population in and immediately dependent upon Wall street was hardest hit.
 More than 100000 stockholders and bondholders scattered throughout the rest of the country are fellow sufferers, but there is no such concentration of punish ment as here.
 Those having the financial management of the railroads. most of whom have headquarters in lower Manhattan Island, or have close affiliations there, have the same story to tell of gloomy prospects. Almost without exception they report sensational falling off in traffic with