Omaha daily bee., 1907-12-30
PROSPECT BRIGHTER
End Of Week Shows Sharp Rebound
in the Prices of Stocks.
MONEY sITUATTa IS CLEARING
Demands Of FIJI Ek Nar Expected
to Be Except, = . 'esvy.
COUNTRY BANKS ~ OUT
Show a Disposition to a the
DiscOunting of Pape
COUNTRY BANKS
Show a Disposition to
DiscOunting of Pape
SAVINGS BANKS SHOW UP WELL
sixty-Dsy Period Has Expired and
Few DeDOsitOrs Have Taken Adj
vantaEe of Notices of with
drawaI of Funds.

draWal OF Funds.
NEW YORK, Dec 29.-The downward
drift OF prices OF stocks last week. in a
market that was almost idle at times, re-
flected the restraining influence of the
scantiness OF money supplies and the pur-
pose to await developments in the COM
mercial position over the end Of the year.
The source Of anxiety was clearly indicated
by the brisk rebound IN stocks at the end
OF the week, Induced by the decisive de-
cline IN the premium on currency, the can
collation. of a gold engagement in London
and the inferenees drawn from these Incl
dents OF a clearing>of the money situation.
Preparations for the yearly settlements
made requirements which would give care
for their provision in normal money con-
ditions Besides dividend and interest pay.
ments for January, estimated at around
SlS5,OO0,000 there fell due on January sub
scription obligations for new Northern Pa
cihc and New York. New Haven & Hart
ford stock, and the American Telephone
and Telegraph convertible bonds to the
amount OF nearly s9OCOO,OOO There was a
good deal OF calling of loans by the banks
In preparing for the financing. which ex-
ercises repressive influence in opera
tlon In stocks. There was, besides the ap-
prehension that the money situation would
react unfavorahlg on commercial affairs
after tho first OF the year. Large maturi-
Ties fall due at that time of mercantile pa
FER, based on extensive previous purchases
OF merchspdise OF all varieties, for which
the market has been notoriously unfavor-
able in the depression which ensued upon
tho banking crisis. The market for mer-
Camille MAJ In No
has been scarcely more. than nominal and
the prospect OF the continuance of that
,copditlon causes anxiety over adequate de-
mand 10 provide for needed extensions for
some Of these maturing obligations
Banks Loosen Uo.
One of the weeks developments which
attracted most attention was the revival
of a demand on the part of interior banks,
small In itself but regarded as a possible
symptom OF better things for mercantile
paper OF, the best grades
Resides this immediate need Of mereat
tile borrowers. feature Of the money mar
'ket for the coming year win be the large
wolune of temporary note issues OF the
railroad and industrial corporations. which
were put o6t last year for emergency ex
penditures after the market for ordinary
pond issues became glutted and which fall
due at various periods throughout The COM
ing year to total estimated at S119 900 OOo
The banking position upon which these
conditions converge had light thrown upon
last week from several sources There
was published the digest of conditions of
all the national banks as shown In the
reports TO the comptroller OF the currency
as OF December g. and also of REPORTS 70
the New York State Banking department
OF conditions OF state banks and trust com
panies as OF December 49, The reports Of
the national banks of the country COM
pletely confirmed the Inference Of the whole
sale withdrawal from reserve and central
reserve cities of deposits of banks which
had the proportion of their reserves per
mltted by the national banking law in
trusted TO those repositories. The comp
troller's digest shows that the smaller
banks heavily curtailed loans as wen as
calling home their deposited reserves. while
the central reserve banks infringed upon
their legal reserve limits and issued clear
ing house certificates to provide resources
to meet the strain which thus threatened
a breakdown.
Savings banks All Right
The reports to the New York Ranking
department show the state banks in New
YORK, members Of the clearing house as
, Hncral contributors to the means for meet
ung the crisis, while the reports of the
trust companies clearly define the pressure
on those institutions as a whole, in sympa-
thy with the severe runs on a few of their
members and the additional strain thus in
volved on the reserves of the clearing house
banks. The conditions thus reported are as
hey existed and the experience of similar
CRISIS In the past show a precedent for
quick recuperation and refiux of funds to
banking reserves after the panic has sub
sided. The rate OF this recuperation in the
present period, however has been disap-
pointingly slow. The continued inflow Of
Imported gold 10 New York. the outflow OF
,ash from this center and the persistence
u the Uranium on currency are as un-
mlstakable proofs of the tenacity with
which banking reserves have been withheld
from redeposit in the central reserve banks
IN the case Of the savings banks gratifying
evidence has been AFFORDED OF the entire
subsidence OF distrust among depositors
Last week saw the expiration of the sixty
day limit imposed on the withdrawal of
deposits by most OF the savings banks
some preparations for possible extra de-
mands and these preparations had some
mhuence IN tightening the weeks money
market. The event proved that an insiK-
nlneant proportion of those who had given
notice OF intended withdrawal were acting
on the privilege Advices and reports OF
railroad earnings are carefully scanned for
Indications OF the course of the country's
Industries ana the discussion of dividend
prospects Is brought prominently forward
as a corolary.