The Montgomery advertiser., 1909-03-22
FINANCIAL REVIEW

New York. March 2i@-The important new Legislation proposed in the tariff revision bill introduced at the special session of Congress last week has been of paramount influence in the securities markets and indeed in all the financial and commercial markets.
 The effect has been one of confusion rather than of any definite shaping Of sentiment or opinion and the conse- quence is to check initiative and new undertaking. This is partly due to the conviction that the bill as introduced is destined to amendment and altera- ton and also to the necessity for g. pe- riod of adaptation to new conditions that will follow its final shaping. The changes in duties proposed were in themselves of mixed effects in the se- curities market. strengthening stocks of some companies for which an ad- vantage Is anticipated from the changes and weakening others for which lessened earning power is looked for.
 The larger view of the matter. how ever. deals with the effect of business to be expected from the uncertainty which Is likely to prevail during the debating and shaping of the bill for its final passage. The professional element of the speculation had anticipated some selling of stocks to follow the fntro- duction of the bill and had sold stocks short. The event did not fulfil the ex- pectation and the requirement. of the short interest for the coverings had a strengthening effect on the stock mar ket. For the most part holders and dealers in stocks seem disposed to adopt the same waiting. attitude which is likely in the business community until the final result defines itself more clearly.
 The revenue producing features of the new bill receive special attention in the countrv's money center owing to the constant influence upon the money market which our fiscal meth ods cause. A failure of the bill to pro- duce adequate revenues Is discussed as a possibility and the provision for issue of Panama Canal bonds to reim- bul SC the treasury for expenditures on that account and the authorization of an increase in treasury certificates from $100.000.000 to $250.000.000 gives an impression of apprehension on the part of the framers of the bill of shortcomings as a revenue producer. r. The possible effect of these new gov | ernment issues would be to stimulate national bank note issues and to inject into the circulation, already redundant an amount that would force out gold and produce abnormal money condi- tions.
 The effect on the treasury position ot gold exports offers subject for some anxiety owing to the low supplies of gold In the Urea sury vaults and con- gestion there of national bank notes in course of redemption. Attention Is drawn to the matter by the gold out 20 to London and the development of a new factor in that outgo. This the i evidence that the joint stock banks of London have entered upon a policy oi | n# lf axrit ance with the urgent representations of the Banking and Currency. Commit | tee of the Association of Chambers oi Commerce of the United Kingdom.
 The demands which may be entailed on New York for gold. it Is believed must have some early effect on the New York money market. At present the over-supply of money in New York Is so great that New York bankers are purchasing bills in London for the purpose of employing their funds. This | makes a demand for remittances and i is a factor in the strength of foreign | exchange. So also does he Co., tinua ton of foreign liquidation of American securities. The foreign trades state- ment for February indicates how. far the commercial exchanges are working 1 in the same direction. The current in- crease in merchandise imoorts and de- cline in exports having reduced the excess value of exports for the month to S74.400. 400. compared with as3.004, 400 in February of last year. Large money resources seeking employment are Or, effective instrument in the present maintenance of stability of prices. not only of securities, but of commodi. ties. Bank loans on copper are known l to stand at a large amount and banks throughout the country have boughi | largely of recent bond Issues to retain A return on their funds pending the revival of mercan.i demand for thea employment.