The Birmingham age-herald., 1907-09-23
World of Finance Has More
 Confidence in Future
LOW LEVEL NOW REACHED
Knowing Ones Believe That Markets Will Not Suffer Further and
 Prices are on d Stable
Basis

New York, septemher 22-A more cheerful feeling over lhe financial out look has emerge q thr ash the clouds In the movement of the sfaek market. These clouds were gathered IT the most part over the metal industries, especially cop per.
 The price of copper has made further decline and plans for radical curtail- ment of output have been officially ad- nouneed by the great producers. Hopes are entertained that the level of stability in the trade is near, and that the with held demand will develop and the market right itself. Fears that a similar eX- perience awaited the iron and steel trado have grown less acute revving demand for iron is almost reported.
 The most important factor in the senti- ment Is the betterment of the money mar ket and its prospect. With the passing of the special syndicate requirements Of the New York City bond sales and sub scription to the Union Pacific convertible bonds the money market has shown an casing tendency which has applied not only to call loans but to the time loans branch. feature of the money market, however, is the unusually large offering of the mercantile paper and the continued high rates commanded by high grades. This Is the reflection of the sustained ac- tivity in general trade as reported to the mercantile agencies from various parts of the country. The condition of the banks of the country reflects the same condl" tons to large extent, the fact being re- vealed by the compilation of the reports of the national banks to the comptrollers as of August %.
 Subject of Surprise.
 1t is subject for surprse that du:ing period characterized by such drastic liquidation in the securities market there has occurred. nevertheless, an expansion in loans of the national banks of si7. .4i0,- 217 over the preceding call on May 70 of this year. while the comparison with Sep tember of last year shows q loan in- crease of s319, ,600, ,652 Turning to the statements of the New York clearing house banks for the same period how ever, it is found that loans of those in- stitutions on August 2l were $3S, ,237, ,5Oo less than on May D. and only S2l,4l2 400 mofe than on September l, 1906.
 This discrepancy is emphasized by the showing of the New York state trust companies. which showed on August 22 a contraction of $3I00G 000 in loans on collateral compared with June l. The inference is plain that the principal pres sure for credits has been on the banks of the country at large. The number of banks reporting also on August 22 had increased to 6544 compared with 6i29 on May 20 and 6l37 on September l. 1906 Meantime there has been an increase in cash holdings for the shorter period of over S10.O00 000 and for the year of s77.- Oa,010. the proportion of legal reserves standing on August % al 2l .33 per cent compared with 21 22 per cent on May 20, and 20. 70 per cent on September 1, last year.
 Much Liquidation.
 It is known that there has been q very extensive liquidation of the countrys for egn indebtedness in the period under re- view and it is question how far the transfer of these obligations to home in- stitutions may figure in this loan. show ing government operations have conduct ed the easier conditions at present the treasury statement showing a growth of some Ss. O00,090 in deposits with national banks since the process began.
 The governments excess of receipts over expenditures for the current month also is some S5,o00Oop less than in the core spending period last year. Foreign money markets have become so far treasured over the situation here. that they no longer manifest anxiety over any demands from here. The money market at Der I'm is in strengthened circumstances yet, but discounts are declining in London and In q reduction in the Bank of England rate is considered a probability.
 The outlook for cotton exports Is not so clear and the better prospect for that crop have had a material effect upon the price of cotton. The sustained high level of the value of imports of mer- ehandise is another modifying factor in the exchange situation. the result be- ing to bring the trade balance in our favor for August, down near the van ishing point.