The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-30
FAVORABLE STATUS
IN STOCK MARKET
Placing Our Bonds Abroad
Relieves Money Market
SALES BEING PUSHED
Steady Growth of Confidence
Years Harvests VIII Prove Album
dnnt in Spite of Backward
ness of the Season

New York. May 29.-The principal
events of the week were construed Ia
vorably from financial STANDPOINT
but they were taken advantage OIL new
ertheless. to push stocks sales, and az
declining prices. Preparation is De-
lieved to be going on in That Way0or
the possible strain on money markets
of the coming autumn, when the move
nent of the crops and the requirement
for funds thus involved might embar-
rass an over-extended credit position,
such as was shown by the last national
bank return to the controller of the
currency.
Speculative liquidation was actively
pursued, not only in stocks. but In the
grain market, and to less extent in
the cotton market. The completion OF
arrangements for placing issues Of
American bonds abroad has formed an
additional element of relief for the
money market.
So far prices of commodities have
been placed on an artificial level by
speculation or by other causes; read
justment to normal is of prime impor-
lance from every point of view. The
apprehension of the banking commu-
nifty over the abnormal situation of the
country's foreign trade has been frank
1y expressed and the prices maintained
here are held responsible both for the
heavy excess of imports over previous
years and the deficiency of exports.
The process of speculative dehation
while painful is regarded as essential
and as conducive to salutary results.
Such results are the more assured by
the substantial ground for the fall in
commodity prices afforded by the IA
yorable prospects. There is steady
growth of confidence that the years
harvests will prove abundant. notwith-
standing the backwardness of the sea-
son and the hazards to which the crops
have been sub jected. Along with the
promise for the crops goes the in
creased need for money, and the bank
ing facilities for which preparation Is
regarded as essential. Last week saw
the Sbelated announcement of the sale
in France Of $5o,0000o0 of St Paul
bonds and Of $10,000,000 Cleveland, Gin
cinnati Chicago and st. Louis bonds.
The fact that long expectation had
blunted the immediate effect of this
news on the stock market does not alter
its essential Importance as much
needed supply of capital for enterprise
in this country. The methods of French
bankers and the habits of French in
vestors assure a permanent character
for these investments that adds greatly
to the Importance of access to this
source of capital supply.
The feelfng'in New York banking cir
cles regarding the longer financial out
look is seen in the interest shown i'll
the course of the government finances
Panama canal expenditures bring up
the question OF possible with drawal of
government deposits from the banks or
the issue of canal bonds as an alterna-
tive.
The necessity is realized of per
cent interest rate to float a bond issue
and refusal on the part of Congress to
provide a higher tax on the bank note
issues under these bonds as an offset
against its profit compared with that
under the per cent bonds would cause
a drop in the latter to below par in the
market, it Is claimed, thus calling for
deposit of additional bonds to secure
the circulation.
The increased activity in the iron
market at the reduced prices is regard
ed as giving promise of the expected
turn towards betterment in that indus
try.