The Montgomery advertiser., 1908-03-02
FINANCIAL REVIEW.
The Securities Markets Waiting TOT
 Deve1opmemtn.

-
 Developments.
 New York. March i.--Securities mar kets last week were dull and inert anu were adjusting themselves to an a.t,- tude of waiting for the developmen.s to shape the future course or anans
 This was true not only in New York hut in the great financial centers abroad. At all these points there was ,Iiscernable the same tendency toward accumulation of reserves in panhihs centers and in all cases. the reason for the accumulation was shrinkase in trade and industrial activity, leaV- ing a lesended demand for money TOT active use In enterprises.
 Tn the United States the enects oI the accumulation of reserves are onset by d number of causes. The United States treasury. partly induced oy the current deficit in the revenues. has commenced to withdraw from the na- tionaI banks the deposits which were placed with them as an emergency measure during the financial crisis The national bank notes which were is- sued in extraordinary yolume M .ne same time are going into rapid reaire- ment by deposit of lawdul money with the treasury by the issuing banks.
 These symptoms of a contraction Tn the needs of the circulation are ac- companied by signs that interior banks are disposed to keep up their reserves to a high level and to refrain from re.deposit in the central reserve banks to the extent allowed by the national bank law. The initial requirements of the New York trust companies in pre- parinx for the weekly statements or conditions was another factor in tak- ing up the slack of return money to the reserve centers. The consequence is, that the plethoric money conditions which were expected to follow the sub sIdenee of the panic have been slow to develop. Interest rates on time loans in New York have shown hardening tendency during the week.
 Another element In the course of the money market was the discrimination exercised agatnst collateral offered for loans Some of the industrial stocks and railroad securities of companies which have suffered from diminished earnings are looked at askanee by mon ey lenders and to add to the difficul- ties of borrowers. The shrinkage of proffts and the diminuition of earnings applicable to payment not only of divi- dends but of fixed charges, had been @ couspicuols influence on special secur- ities in the open market, correspond ing importance Is given to the plans to curtailment of expense to meet the decline In earnings.
 The question of wage reduction was given special prominence in the indus trials A good impression was made by the placing of orders for steel rails by the railroad companies and by the report that the rolling activity of the United States Steel Corporation has risen from the twenty-eight per cent of capacity touched In the depths of the depression to some 51 per cent of capacity.
 The copper market showed improved tone, railroad earnings were reported to be on conservative lines
 The sluggish investment demand for for bonds was conspicuous and offered little encouragement for early success in the placing of new capital issues. which were relied upon to furnish re- sources for important projects of ex- tension under way.