The Birmingham age-herald., 1908-03-02
SECURITIES WAIT FOR DEVELOPMENTS This Condition Prevails At
 Home and Abroad RESERVES ARE INCREASING Orders For Steel Rails By Railroads Makes Good mpression-Rolling
 Mill Activity Is Greatly
 Increased.
RESERVES ARE INCREASING

New York, March 1.-Securities markets last week were dull and were adjusting themselves to an attitude of waiting for the development 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 discern ible the same tendency towards accumula- ton of reserves in banking centers, and in all cases the reason given for the ac- cumulation was a shrinkage in trade and industrial activity, leaving a lessened de- mand for money for active use in the en- terprses.
 In the United States the effects of the action of reserves are offset by number of causes. The United States treasury partly induced by the current deficit in the revenues, has commenced to with draw from the national banks the depos- it's which were placed with them as an emergency measure during the financial were issued 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.
 Symptoms of Contraction.
 These symptoms of a contraction in the needs of the circulation are accompanied by signs that interior banks are disposed to keep up their reserves to a high level and to refrain from redeposit In the cen tral reserve banks to the extent allowed by the national bank law. The additional requirements of the New York trust com panies in preparing for the weekly state ments of condition were another factor In taking up the slack in the return flow of money to the reserve centers. The con- sequence is that the plethoric money conditions which were expected to follow the subsistence of the panic have been slow to develop. Interest rates on time loans in New York have shown a hard enng tendency during the week. Another element in this course of the money market was the discrimination against collateral offered for loans Some of sfle industrial stocks and railroad se- curtias of companies which have suffered from diminished earnings are looked at askance by money lenders and add to the difficulties of borrowers. The shrink age of profits and the dminution of earn ings applicable to payment not only of dividends. but of fixed charges. has been a conspicuous influence on special securl- ties in the open market
 Plans For CurtaiIment.
 Corresponding importance is given 10 the plans for curtailment of expenses to meet the decline in earnings. The ques- toin of wage reductions was given special prominence ir the industrials. good inn presson was made by the placing of or ders for steel rails by the railroad com panies and by the report that the rolling mill activity of the United States Steel corporation had risen from the 2S per cent of capacity touched in the depths of the depression, to some 51 per cent of ca pacity.
 The copper market showed improved tone.
 Railroad earnings showed no pronounced betterment and operations in general trade were reported to be on conserva- tive lines The sluggish investment de- mand for bonds was conspicuous and oi- fered little encouragement for early sue cess in the presenting of new capital ls- sues. which are relied upon to furnish re- sources for important projects of exten- sion under way.