The morning journal-courier., 1908-03-02
FINANCIAL REVIEW Foreign Centers Show Equal Condition of Stagnation
 With New York. BANKING RESERVES HEAVY Accumulation Due to Business Shrink age Lessened Here by Number
 of Causes.

New York, March 1.-Securities markets last week were dull and in- ert and were adjusting themselves to an attitude of waiting for the develop ment of events, to shape the future course of affairs. This was true not only in New York but in the great financial centers abroad. At all these points there was discernible the same tendency towards accumulation of re- serves. in banking centers and in all cases the reason given for the accum uation was shrinkage in trade and industrial activity, leaving a lessened demand for money for active use In enterprises. In the United States the effects of the accumulation of re- serves are offset by number of causes. The United States treasury, partly induced by the current definit in the revenues. has commenced to withdraw from the national banks the deposits which were placed with them as an emergency measure during the financial crisis of last fall to the lim- It's of the treasury's resources. The national bank notes which were is sued in extraordinary volume at the same time are going into rapid retire ment by deposit of lawful money with the treasury by the issuing banks This process reached the limit of the legal permission of s9,000,000 a month, early in the present month, and applications at Washington over the limit for next month as we'll Measures are under discussion to en- able the banks to exceed this rate of retirement by direct redemption of their own notes when returned to them from the treasury It Is held, also, that bank notes issued on the se- curity of the treasury notes issued last fall may be retired if the treasury notes are called for redemption with out restriction from the S9,O00, 900 monthly limitation and this measure Is under discussion as available to help along the efforts to prevent a re- dundancy in the circulation which might impel exportation of gold These symptoms of contraction in the needs of the circulation are accom- panied by signs that interior banks are disposed to keep up their reserves to high level and to refrain from re-deposit in the central reserve banks to the extent allowed by the national bank law. Public and legislative dis cussion of the advisability of amend ment of the law in this particular in conformity with the lessons of last falls money crisis are probable in fuence in this direction. The addi- tional requirements of the New York trust companies in preparing for the weekly statements of condition, which now supplement the statements of the regular clearing house banks, were another factor in taking up the slack in the return flow of money to the re- serve centers. The conseuuence is that the plethoric money conditions which were expected to follow the subsistence of the panic have been slow to devlop. Interest rates on time loans in New York have shown a hardening tendency during the week. Another element in this course Of the money market was the discrimination accorded against collateral offered for loans. Some of the industrial stocks and railroad securities of companies which have suffered from diminished earnings are looked at askance by money lenders, and add to the' difficult ties of borrowers The shrinkage ot profits and the diminution of earnings applicable to payment not only of divi- dends but of fixed charges has been a comprehensive influence on special SC. curitics in the open market. Core. spending importance is given to the plans for curtailment of expenses to meet the decline in earnings, Th, question of wage reductions was given
 
 velt's instructions for official investiga. ton of the problem were subject to constant discussion and were made tbe indirect text of complaint of the polit. ical bearing given to this question in the annual report of President Trues- dale of the Delaware, Lackawauna and Western railroad. Conferences over wage reductions and the application of the Southern railroad officials 10 the in terstate commerce commission for arbi. tration of the question were feature. of the week.
 On the industrial side a good impres. sion was made by the placing of orders for steel rails by the. railroad comps nies and by the report that the rolling activity of the United States Steel cor poration had risen from the 2s per cent of capacity touched in the depths of the depression to some 51 per cent of capacity. The copper market show ed improved tone. Large sales wert reported at the decline in price of the metal. which relieved the accumulation of stocks pressing for sale Railroad earnings snONeu no prohuulceu bettef- ment and operations in general trade were reported to be on conservative lines. The sluggish investment demand for bonds was conspicuous and offered little encoura cement for early success in the placing of new capital issues which are relied upon to furnish re- sources for important projucets of ex- tensions under wasr