The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-07
PRICES OF STOCKS
MAKE SOME GAINS
Weakness Is Decided in Early
Market Session
THE RECOVERY Is RAPID
After Decline Which Brings Losses
to Nearly All Issues Prices Make
Sharp Upward Turn and
Close Higher

4Ne" iorh, july b-Inere was dis
position today in the financial district
10 turn to the banking and financial po-
sition for explanation of the action of
the stock market to the partial eclipse
OF other causes lately preferred, such as
the railroad policy of the government,
delayed Interpretation of the Sherman
law and crop prospects.
The increased prominence given to the
banking situation grew out of the pub
lished expressions of some of the noted
banking authorities of the interior re-
garding the farm land speculation and
the correctness to be apprehended there
from.
The subject itself is not new one
nor Is Its Importance newly regarded
by New York bankers since 1t has been
dwelt on for months past and with spe-
cla1 stress since the abstract of reports
OF national banks under the last comp
troller's call In March become known
disclosing loan expansion in the sum
of nearly half a billion dollars. This
has kept alive conviction that the
Objectionable position was in course of
correction. The correction is maintained
In no degree by the interior banks and
there is complaint that the smaller
banks are still burdened with mortgages
. and with farmers paper instead of the
usual investment in commercial paper
which serves as a secondary reserve
while their balances in the reserve banks
are below normal. Such a position in
dicates that the crop moving require
ments will have to be met to a larger
extent than usual by calling on the
larger banking centers for accommoda-
ton.
The intimation that the reports now
being sent to the comptroller will not
show the expected improvement in the
credit position had a disturbing effect
on sentiment and was large factor In
the early crash of prices today. Some
few stocks then fell to below last weeks
low levels thus establishing them at the
lowest for the year.
The Importance attached to the pros
pective money condition left speculative
sentiment ready to be easily influenced
by the reports that gold had been en-
gagged In London for shipment to New
York The violent recovery in stocks
recent
of foreign exchange rates had presaged
such movement the engagements to-
day came sooner than was expected. The
effect was to stiffen the private dis
count rate in London and arouse some
question whether the official bank rate
would be reduced tomorrow as was ex-
pected. 1t is not believed however that
any determined obstacle will be made
to the movement of gold in and out of
New York. The London money market
is IN a strong position and with the
prospective redemptions of short term
government obligations there is likely to
develop redundancy. Money is consid-
erably lower in London thap in New
York, offering an inducement to place
trade funds In New York
Subscriptions for the American bonds
recently sold abroad are payable In in
stallments which call for remittances to
New York. The merchandise export
movement from this country has shown
Improvement and imports have fallen
Off There have been purchases of Sc
curities in the New York stock market
for trade accounts during the severe
depression of the last few days and
these have helped to weaken exchange
rates. That the course of relief Is open
to New York money markets in London
Is a belief warranted by these condi-
tions.
The decline in wheat and corn helped
stocks. the strong rally in wheat on un-
favorable weather predictions in the
spring region having its Influence and
helped to unsettle the rally at the last
The early severe declines were more
than recovered. however, and general
net gains were retained at the close.
Bonds were irregular; total sales. par
value, $2,O71,O00; United States bonds
were unchanged on CALL