The Birmingham age-herald., 1908-01-20
Release of HoaTied Funds
 Gives Renewed Confidence
STOCKS ARE ON FIRM BASIS
Railroad Stocks Show Great Improve ment During the Week, and Other Issues Share in the Bull
 fish Sentiment.

New York, January 19.-Last week saw considerable increase of activity in the market for securities, but the irreg-
 ular movement of prices was reflection
 of the conflicting influences at work. The
 most effective of these had to do with
 the technical position of the market it.
 self but there grew up mixed views as
 we'll regarding the general outlook for affairs as between the rapid restoration of normal banking conditions on the
 one hand and on the other hand accu-
 mulating evidences of the extent of the
 reaction in '- and business and
 the resurs to be expected in the earn ing power of properties with securities listed at the stock exchange. The dis closure of the re-establishment of a com fortable surplus of reserves above the legal requirement. made in the bank state
 ment of the previous week, served to quite effectively allay apprehension over the money situation.
 The release of funds which had been
 held back from banking reserves to await
 this showing proceeded in strong flood
 and interest rates on loans of all kinds
 declined in a pronounced manner in all
 markets both here and abroad. This development had been accurately fore
 seen by the speculative element in the securities markets, and previous pur- chases had been made to take advan- tage of the new outside demand, which would be stimulated by the increase of | money facilities for use in stock opera l tions. There was, in fact, considerable accession of outside demand for stocks l through commission houses, but the sales
 to realize profits by the powerful spec ulative party which had been pursuing organized operations in the previous mar ket served as a material offset to this 1 demand.
 l Money Market Easier
 The first and most important relief af- | forded by the pronounced relaxation of 1 the money market has been in the facil- l ites afforded for strictly mercantile needs Anxiety on this point has prac- ticaly passed away The quick response | of stocks of railroad equipment companies | to the news of the sale of $30,OOO,000 New l York Central equipment trust notes, the | proceeds of which are to go for pay l ment of equipment already delivered, was l significant of the field and extent of this anxiety The sale of these notes was made much of as a proof of the restored confidence of capital and it's willingness | to seek renewed investment in corporate expenditures. This impression was modi- l fled by the terms of the sale. which l were on an investment return of 5A to 1 5M per cent. with a marked preference l for the series of the notes with the 1 longest term to run. The reported terms | of sale of $1,500,O0 of Consolidated Gas l one-year 6 per cent notes on per cent | basis was additional evidence of the 1 continued high attraction still considered | necessary to secure new capital.
 | In the more immediate money situation | consideration is given to the imminent necessity for the United States treasury | to draw from the deposits with the na- | tional banks to replenish its working I balance, which is depleted by the grow | ing deficit in the current revenues. A movement by the national banks toward retirement of note issues is gaining force l with the heavy return tide of cash from | the country's circulation. The movement | to establish 25 per cent reserves with the admission of New York trust companies l to the clearing house, if pursued. will | call for an accumulation of cash, esti- | mated at 60,000000.
 Exports of Gold. l The question of gold exports is brought | forward by the sharp rise in foreign ex- l change towards the end of the week. It | is possible also, that while the easing l of the money market has resulted in Q rapid retirement of perhaps half of the | loan certificates issued by the New York | clearing house. there is an important residue of these instruments, which were issued for the relief of trust companies whose retirement may be delayed by the character of the collateral securing them,
 which is slow to be marketed. Much the most important contending influence against the growing ease of the money market is the evidence of trade contraction and diminished profits. Rail- road traffic has fallen to a low ebb and the American Railway association esti- mates 207,O0O freight cars are idle in the country.
 Some sign of improvement was reported from the iron and steel trade over the low point of activity at which the year opened. There Is hope manifested that improvement is at hand, but the fact that present conditions are to be reflect ed in reports of earnings yet to be made up makes speculative temper apprehen- they shall come to hand.