The morning journal-courier., 1908-01-27
MONEY AND STOCK Market Has Failed to Keep Pace With Monetary I'm
 provement. MONEY GOING BEGGING Stimulation of Investment Sure to Fol low Continuance of Present
 Conditions.
(specisl to ike Journal-Courier.)

New York, Jan. 26.-ConSlderable surprise as well as disappointment pre- vails in financial circles at present be- cause of the failure of the stock mar ket to respond to the steadily improv 1 ing conditions in banking and mone tary affairs Throughout practically the entire week just closed prices for stock on both the New York Stock and Consolidated Stock exchanges have displayed a declining tendency, not Withstanding that the local banks have further strengthened their position very materially, while the money mar ket has taken on additional and very pronounced ease. Brokers on these exchanges explain this by saying that in it's recent sharp recovery from the extreme low prices reached during last years panic the general stock marker discounted" existing monetary condi- tions, but at the same time they ex- press the opinion that any continuance of the prevailing plethora of money must sooner or later stimulate invest ment buying to degree not hitherto attained for long time past. During the forepart of the week there was good deal of buying of this character, and in this consequence transactions on both the New York and Consolidat- ed Stock exchanges rose to active pro- portions, dealings on the latter having shown a relatively larger increase. However, there was some falling off in business toward the end of the week, when prices sagged. which is conclu- sive evidence of the present temper of the speculative public.
 Money continues to pile up at this center in almost unprecedented vol ume, and if it continues to do so on the present scale the New York city banks will soon have in their vaults larger amount of available funds than at any time in their history. This is certainly in any marked contrast to the conditions prevailing only a few weeks since, when the local financial institutions reported the greatest de- felt on record-over $54, 4,000, ,000-and testifes to their marvellous recupera- tive ability. At the close of last week, it will be remembered, the clearing
 
 plus of $22,635,475
 During the week just ended there has been an unusually heavy influx of money from out-of- town cities, the heaviest in fact on record, and it is cal culated that the local bands have gain ed from that source alone something like s15,O00,0oo In the previous week no oHditio,a ,o 1. .t.. bank amounted to s26,OOO,00O, so that in two weeks there has been an approxi- mate gain of over s41, 100000. This proved conclusively that all evidences of the recent panic has beenTcompletel ly wiped out, The coming week will in all probability witness the retirement of all the clearing house certificates now outstanding, as there are at pres ent only about slO,O00, 900 of these in sxistance. Such an event will be fol- lowed by a resumption of the publica- tion~ of statements of individual banks in the clearing house, which was sus- pended during the late panic.
 The effect of all this piling up of money here has been reflected in furtner sharp decline Tn rates for loan able funds. At the close of the week call loans on the stock exchanges col lateral could be had as low as 1-4 at 1 1-2 per cent, while for four or six months period business was being done at 12 per cent, with borrowers gen erally holding off for even lower fig ures. In truth it may be said that, whereas money could not be obtained on any terms only a very short time since, it is now actually going begging This, it is argued, is bound to have telling influence on the market for all classes of securities before long and explains the optimistic feeling prevail ing among practically all brokers on the New York Stock and Consolidated Stock Exchange.