The Birmingham age-herald., 1908-10-19
ELECTION WILL
 END HESITATION
Business Conditions Show
 Steady Improvement
STOCKS SHOW STRENGTH
Though the Federal Treasury Is Run ming Low, the Bankers Seem To Be Prepared for All De-
 mands for Money.

New York, October 1s.-An undertone of strength and confidence was manifest last week in the financial markets, but it's ac- tive expression was restrained by a wait ing for the fulfllment of some of the fac tors which were the prospective causes for the hopeful sentiment. In the stock market itself sentiment of reserve to- ward any great extension of commitments was distinguished after the almost instan- taneous restoration of the price level on Monday with the cessation of the foreign liquidation.
 Undoubtedly this reserve was induced by the contemplation of the enormous credit expansion of the New York banks, which had accompanied the acceptance of the foreign sales of American securities while the war scare was in force abroad. It was an impressive demonstration of absorptve power in the New York mar ket that it should have taken over s2O, 0oO o0O to S25,0OOoOO of foreign holdings of American holdings, and then Monday re- stored the impairment of prices that had resulted in a few minutes, but there stood the $25, ,000, GOO loan increase of New York banking institutions for the same period
 This and other factors at work gave intimation that the extreme redundancy which has prevailed in the New York money market was to be modified, al- though no fears are felt of any danger of stringency. A rise in rates for the use of money, both on call and on time, during the week testified to the reality of these factors. Even without a recur- renee of the strain of political crisis in southeastern Europe the expanding re- quirements for banking resources are ex- pected to make for firmer money condi- tions.
 A reopening of the labor controversy in the English cotton mills was responsible for some scarcity of cotton bills in the foreign exchange market, where the firm ness of rates kept discussion open of pos sible gold exports. The heavy grain movement and the expansion, moderate as yet, of commercial activity keeps the flow of currency away from New York. This flow was restrained by the firmer New York money market last week. New York exchange at Chicago being lifted to small premium.
 Finally due consideration must be given to the peculiarities of the state of the government finances for this fall. It is many years since the United States treas ury has not made effective additions dur ing the autumn months to the money supply by one device or another. Re- sources are manifestly lacking for any such relief this year The possibility of a call on the banks for surrender of a pro portion of the government deposits held by them, to the contrary, is canvassed by bankers. The running deficit in the government revenues keeps pulling down the treasury departments working cash balance. On November 20 the one-year notes put out by the treasury to help relieve the panic will mature. An issue of Panama canal bonds also is in con temptation. Prospect of any relief for the autumn money markets from the United States treasury, therefore, is left out of the reckoning of the bankers.
 Of the actual progress of the improve ment in business there are many indica- tions. The prosperity of the farming community is much dwelt upon, plentiful crops and good prices conducting to this showing. Future expansion in demand for commodities and growth of mercantile business are looked for as a result. Dl- minishing surplus of Idle freight cars tes- tifies to the tendency of railroad traffic, and returns of railroad earnings are be- ginning to show more satisfactory re- suits. Consumers of copper are reported more active buyers, and prices are better held by producers.
 The coming report of the United States Steel corporation for the third quarter. the year is the subject of favorable inti- nations, but iron trade authorities agree in reporting a lull in that trade for Oc- tober Much of hesitation and reserve in that and all business quarters is expected to disappear with the passing of the na- tional elections.