The morning journal-courier., 1908-01-06
FINANCIAL REVIEW Full Restoration of Confidence Hindered by Some
 Anxiety. PANIC ECHO IS FEARED Smooth Turn of New Year and Absence of Gold Premium Work Crow
 ing Improvement.

Ln0 new year sees d ulSpositioh iciieSe ed in the financial markets to turn from the contemplation of mournful yesterdays and to look forward with hope and confidence to the future. The conviction is firmly based that decided improvement is ahead but this convict tion his been tempered by some anxiety over a possible remnant of unpleasant consequences of the financial crisis yet to be gone through. A special field of pneasiness was the provision for the annual settlements in the money mar kets, which were unusually heavy, while the resources of the money mar ket. although rapidly improving were still much impaired. The smoothness with which the turn of the year was effected, went far to encourage senti- ment and to stablish the confidence that steady improvement in the finan- cial position was to be expected for ward. The call money rate did not get higher than 20 per cent. which com pares with maximum of 45 per cent. in the corresponding week of last year and 125 per cent. in the year preced- ing.
 Still more significant of the growing Improvement of the position was the rapid dwindling and disappearance of the premium on gold, which signalized the first business day of the new year. So long as the premium persist ed an unsurroundable obstacle to the re-establishment of normal banking position. This development led to the withdrawal of all New York bids for the large consignment of South Afri- can gold which arrived in the London market on Monday. The London mar ket was so far re-assured by this de- velopment that rapid decline ensued in the London discount rate and the \BSnk of England was contrained on Thursday to mark down its official dis count rate from per cent. to pei cent. norder to avoid losing touch with the money market. The z pei sent. in order to avoid losing touch tinued distrust in the outside world oi the American position and it's aban- donment marks the return of faith 1T the passing of our crisis. In New York additional funds have appeared 1T { the time loan market and business ir that department has taken on some degree of activity, although interest rates continued high. Growing demand for high grade mercantile paper also offers promise of relief from one of tn, most threatening sources of einbar. rassment to come, growing out of tn, heavy maturities falling due in that de pertinent from time to time Tn, shrinkage in buying power which ha' gone with the financial unheaval, tn, slowness of mercantile collections ant the stringency of the money market which offered small prospect of ade quate accommodation for the extension of needed credits, threatened a com bination of circumstances from whicl disastrous consequences were dreaded Credit experts in the New York bank are more hopeful of needed accommo dationdation being forthcoming to ia cilitate the process of liquidation which is a recognized necessity, f some extent, in commercial affairss an which 1t is now hoped may be conduct ed with deliberation and good order
 The publication of the bank state ment at the close of the week disclose the free inflow of currency to Ne, York for the week. This developmen is of the utmost importance as mark In the passing of the feeling of dis trust of the New York position, an promising a rapid re-establishment c the normal banking position
 It thus happens that the financis markets have been disposed to ignor some immediate favorable factors efrairs, cheered by the brightening f nanciai prospect.
 The course of railroad earnings re ported was another restraining facto on immoderate enthusiasm values. Sey eral of the great railroad systems, ir cluding notably the Atchson and th Pennsylvania, showed a heavy inroa on last years level of net earnings the return for November owing to th heavy expansion of operating expense Railroad traffic officials, in reporting O the more recent course of traffic mak candid acknowledgment of the rapl shrinkage in the movement of mel chandise of all descriptions. exec, grain. and of their inability to discer probable source of yearly improve ment The professional speculatfy contingent about tho stock exchana harbors a certain amount of suspicio of the rose in prices as being due DO. sibly to fostering measures by banke- and capitalists of large resources wit the design to afford a more favorab basis for the completion of some d, sired liquidation when the expected r, taxation in the money market ma stimulate some general demand for S, curities.
 The bond market is scanned with a tention and interest from day to day detect evidence of renewed flow
 floating capital into investment Son increase of activity was discoverab b last week but the demand was mode ate, in spite of the large disbursemei of dividends and interest to supply
 fund for reinvestment
 pTNENnTET MnTEC