The Birmingham age-herald., 1907-11-25
Confusion That First Existed Is Gone and FinanCisrs Are
 Well Satisfied
FEELING IF DISTRUST
 IS RAPIDLY BY|NG OUT
It Is Expected That Banks Will Re- sume Cash Basis at an Early Date After Bonds and Ger
 tificates Are Issued.

New York November 24.-The an nouncement. before the beginning Of last weeks operations of the govern ment offering of $50. 000.OO of Panama bonds and of s10O,OOo 900 of one year 3 per cent treasury notes. the latter in denominations of $50 and multiple. aroused bright expectations of de- cisive results in breaking the cur rency famine by the attraction that would be offered to hoarders of money of an absolutely secure government ob- ligation during period of distrust of usual investment facilities. The good Influence of the sentiment during the week principally because of the re- turn of the complexities. was discov- cred in the working out of the project.
 Detailed information was not made public of the amounts being subscribed by private capital. On the part of the banks, the propositions to participate in the issue were found to affect the money and currency markets to some extent and there was much confusion of mind in estimating the working out of the effects of the transactions. Mean time the inflow of gold from abroad continued in a steady stream and large additional engagements continued to he lahHs "a arriVt, al f,iture dates. For .he first time during flfe present movement the Bank of France fur l nished part of these supplies. tho trans action being based on commercial bills of exchange. The new source of st.p- ply thus opened up is considered of great importance. Various indications erved 10 prove how far The general banking situation had been strength ened bJ 1he heavy withdraw als from New York and the forwarding of in coming gold as it arrived. Thus the reports of conditions Of Illionis state banks in response to the call of the state auditor showed an increase of many millions in the cash holdings com pared with the previous report in An gust, while outstanding obligations had been heavily reduced.
 Money Goes To Canada.
 The Canadian banks made reports in response 70 similar official call dur ing the week and these revealed l 'iks showing which proved the large
 
 ton with an accompanying scaling down of loans on call without the no- minlon. largely placed in the New York stock market.
 Bankers are awaiting the next call from the United States controller of the currency. the usual period for which x nov passed. There is q growing conYie- ton that response to this call will show the general banking position so fortified by the strong current of cash which has flowed out of New York and from for eign sources that the feeling of mutual suspicion and distrust will quickly die out prompt resumption of normal banking conditions will be looked for sequence.
 The weekly bank statement of the New York clearing house banks was her aided as decisive of the definite turn to- ward betterment in the New York bank inG situation. Loans contracted for the first time since the crisis developed and the small cash decrease was evidence that the concealed drain on the banks had come to an end.
 The stock market was under intermit tent pressure last week. which was we're in spite of financial aid at intervals Of time.
 Cause of Weakness.
 At other times the market showed symptoms of resiliency which were slight
 
 covering operations of professional bears. The weakness was generally accredited 10 a resumption of liquid. ton of a kind which withheld from the market during it's period of demoralizaton by the power Of the influences and resources of the interested parties but on condi- ton of closing out of accounts and pay ment of indebtedness as soon as the market reaches ordinary conditions
 The issuances of clearing house cer- thcates has brought the loan account of the banks under scrutiny free from all collateral influence and impartial In il requirements. The result has been the exercise of discrimination against some existing accounts which exacted their liquida ton on forced terms.
 Maturity of time loans on which re- newal5 were refused was another factor in the urgent selling which appeared in Individual securities both in the stock anG bond list. The clearing up process was an inevitable after effect of the turbulent stock situation which had pre- ceded 1t and such operations are to be interpreted in the light of those past events rather than as reflection of cur