The Birmingham age-herald., 1913-03-23
MONEY MARKETS
SLIGHTLY EASIER
Speculation Still Laboring
Under Burden of Un-
solved Difficulties

New York. March 22.-The dull stock
tion was still laboring under the burden
of unsolved difficulties.
The problem presented by the enforced
abandonment of the Union Pacific-South-
ern Pacific dissolution plan was not
wholly unexpected, but there was room
for its further. reflection in additional de-
clines of prices.
The release of credits tied up to meet
the obligations of the underwriting syndi-
cate probably had its part in the slightly
easier tone of the money market early in
the week
This was the more welcome because OF
the renewed demand upon New York gold
supplies. which tightened the call loan
market again.
Stock market operations made steady
light requirements for money. The pro-
longed Easter recess in prospect increased
the Discrimination to make commitments
on to leave existing contracts open. The
latter disposition accounts for some COW
ering of short lines at the last Pressure
on borrowers proved especially costly to
holders of some Of the so-called good
will' stocks. which were objected to in
collateral Necessitous selling of these
developed thin market, and severe de-
cines resulted. Preparations for the April
4 money settlements abroad continued.
Berlin drawing on London for the most
part and Paris on New York. The ur-
gency of the requirements was shown by
the flow of gold against adverse exchange
conditions, which had to be covered by
extra interest allowances.
New York passed on the pressure to the
country at large by transferring loans TO
interior banks. The question of adequate
supplies of banking credits to meet mer-
camille demands was thus fairly brought
into consideration and the effect of tight
money on commercial operations began 20
find a place in the estimates of merchants
| and buyers The extent of the relaxation
which may follow completion of the April
settlements, or even the conclusion of
peace in Europe. is the subject of anxious
| surmise. Government borrowings and de-
ferred capital issues loom in the back
ground.
American capital is meeting the ext
gency and is profting oy it, but the liqui-
dation of these obligations may force for
eign offerings of American securities in
our markets or even merchandise at cheap
prices to be delivered. While exports of
merchandise for February were about
stationary at last years value, imports
expanded over $i5,000,0O0 with correspond
ing impairment of the trade balance in our
favor. Cotton exports continued to de-
cline and the grain trade betrayed ner-
Vousness lest assurance of peace may in
duce some reoffering here of foodstuffs
which were bought in over-supply while
war threatened.
Talk in Germany of trade reaction and
a fall in prices of commodities added to
the effect of the Presidents call for the
extra session of Congress to reduce tariff
rates. The downward trend OF bonds, as
well as stocks, pointed to the financial
situation as the primary cause of the ex-
listing depression. The approaching spring
promise of the eountry's agriculture and
suchwise sustained commercial and in
dustrial activity were helpful factors
Labor problems kept up an undereurrent
of anxiety