The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-04-08
The Money Market.

reputation of being one OF the most level
headed and far-sighted flnanciers In the
country, says in his Wall street letter of
Saturdays date:
1.-The stock market appears to have par
TALLY recovered from the drastic blow OF
the March panic and now shows dis
tinctly better tendency. After such thor
ough Liquidation many of the weak spots
were eliminated, and the test thus i'm
posed developed a much stronger founda-
ton to the market than was generally
supposed. The shrinkage in values
amounted to somewhere about S2,OOOOoo,-
coo. Prices have consequently been brought
down to a lower and much safer level,
and without serious disaster. This OF
itself Is a marvellous fact. AS repeatedly
stated in these advices for the last six
months, liquidation was the only cure
for the abnormal conditions Of the stock
market reached in 1906. We have now
had that liquidation and, unfortunate
as 1t has been to many, the results to the
market as whole are decidedly bene-
fetal. A good many large and topheavy
speculative accounts have been closed
out, and funds thus released are finding
their way back to legitimate channels.
Monetary conditions have been much
improved by Shis liquidation Bank aver
ages from now on should show a rising
tendency, and very soon the large sums
temporarily withdrawn for April settle
ments will become available In the money
market. Already we have had a very
pronounced drop in call loans This may
have been partly artificial but in the
main 1t was natural; and In anticipation
of easier time rates which should follow
later on. Some gold has been imported
recently, but the necessity for drawing
upon Europe for gold has almost passed;
and the fact that New York need not
trench upon the supplies in London, Paris
or Berlin will unquestionably have
good effect upon the foreign markets
very satisfactory.
1.-THE market is now on a safer basis
than for many months. Stocks have been
somewhat scattered and have fallen into
stronger hands than a month ago. The
advance of the week seems to have been
much stimulated by easier money and
by the driving in of shorts; the present
low basis of values making 1t much easier
to operate for the rise than for the fall.
The former is likely to be the favorte
and more profitable side of the market
until a good recovery has followed the
violent collapse of March. Stocks arr like
ly to become scarcer than money-just the
reverse of what has been the case for
the past six months. This is due to the
fact that at least 10000 shares day
were taken out of the market in small
lots and paid for In full during the ten
days of very low prices. This aggregates
100000 shares. and together with a still
larger amount bought in 100-share lots
for investment. has relieved the previous
ly overwhelmed market of the stocks that
were thrown upon 1t by foreign and
American frightened holders. This relief
to the situation, together with the flood
of money from the treasury and the re-
turn Of interior crop funds, insuring an
easy money market during the coming
summer, forms a good healthy basis for
the present advance and the up move
ment is likely to go still further"
ooston wan AXIS birmingham.
William c. Medley, general manager of
the Vinol agencies of Chester, Kent g.
Co. of Boston. was in Birmingham yes
terday to visit Eugene Jacobs, manager
of Jacobs pharmacy
For man coming from Boston," said
Mr. Medley, 1.-The surprise at the great
prosperity of the south increases with
every trip he makes into this territorv
Take Birmingham. for instance. l do not
know of city north or south that an
pears to have such a brilliant future. The
city's prosperity Is little short of mar
vellous, and at the rate it is evidently
growing 1t will before many years set a
pace that will be hard for any other
southern city to keep, and there will be
few of the northern coast cities that will
have any advantages over this iron and
steel CENTER