The Montgomery advertiser., 1908-04-20
FINANCIAL REVIEW.

New York, April I9-Growing ease and plethora of funds in the New York money market was the marked feature of the financial situation last week. With the middle monthly disbursements of dividends. a quarter per cent, inter est rate was found necessary to effect the placing of funds on call and ninety days loans fell below per cent
 The beginning of exports of gold was the natural consequence of this condi- tion and call from the United States Treasury for the return of an install mont, of Government, deposits Is not ex- pected to have any material effect in stiffening money rates. That the ple- thoric condition of the money market Is due in an important extent to the violent measures for relief taken in the throes of thel panic last fall is true, but the shrink age in trades activity is indicated. also, to an extent which de- prives the ease of money of much of It's favorable effect. Until last weeks engagements of gold for export, there has been no return of any part of the $l00000, 900 of the metal which was im- ported during the financial crisis last fall. The retention of this great fund of reserve money was facilitated by the enormous merchandise exports which went forward month after month cash requirements. In March, for the first time since October, the value of exports fell below those for the cor responding period of last year. AL though the HI NdA0C VI
 ports has been much more violent. 1t Is thought the outward movement of gold will attain considerable dimensions. The flow of funds to New York from the domestic interior. meanwhile, con tinues fin unabated volume and the surplus of the New York bank reserve Is assuming an unwieldy volume.
 Money market conditions. therefore. seem to be reaching the condition promising success for new .onerings of securities. The known necessities of the railroad corporations promise large issues of new securities as soon as conditions become propitious. The Union Pacific, the Illinois Central, the Delaware and Hudson, the New nork Central the Interborough-M h-Metropol1tan and some minor companies have an nounced their plans already. renders for these issues will be awaited With great interest to indicate the course of the investment situation. A tact having some bearing on this situation is the borrowing by some Of the rail- roads. privately as reported last week. on temporary notes on which the Tn terest rate is said to be considerably above the prevailing market rate Aside from the needs of the corpora tions. the demand far loans is slight, and the ease of the money market IS due to this in equal part with the abundance of supplies. The course of earnings of the railroads has not turn ed for the better yet in sumcient de. gree to help their credit in spite or the
 
 meet the inroads on gross earnings.
 A fresh decline in orders for steel products instability in the iron mar ket and continuous decline in prices Of the copper market are a burden TOT hopeful sentiment to contend with, Recurring reports of an intended cut in prices of steel products have unset ting effect in the trade in spite of the expressed determination of the allied interests controlling the largest DOT tion of the output to maintain prices : ence on speculative sentiment. From the high promise of the condition on April i shown by the Government re- port. the need of moisture in some DOT lions of the winter wheat belt indi- cated a possible deterioration which made this influence an unfavorable one for the securities market last week Dealings in securities, however, were unimportant owing to the short week, caused by the closing of the Stock FIX | change on Friday and Saturday