The Birmingham age-herald., 1913-08-24
STOCK MOVEMENTS
SHOW HESITATION
Elements of Uncertainty in
Outlook Both for Finan-
cial and General Affairs

New York, August 2s.-There were ele-
ments of uncertainty in the outlook both
for financial and general affairs which ac-
counted for a hesltating movement CT
stocks this week. The doubtful factors
had special force in view of the extent TO
which the recent rise in prices had pre-
dicted clearing of the financial horizon.
The strained relations between the United
States and Mexico, the continued .droutn
| in the southwest and the imminence of the
interior crop moving demand for cash
were the dominant Influences on securi-
ties
| Stocks of corporations having direct in
terests in Mexico responded conspicuous
ly to the varying news of the week. The
Mexican position, however. had a fai
wider bearing than on these special stocks
as shown by the sensitiveness of foreign
stock markets to the news.
In this connection it is pointed out that
the worlds great activity of trade for
three years past has been due peeuliarrN
to the development of backward countries
The old money centers have financed this
development by absorbing an extraordi-
nary volume of new capital issues. The
resulting over extension both in London
and Paris had much to do with the acute
| financial stringency which has accom-
panied the Balkan war.
| Foreign financial authorities report
vague apprehensions of foreign defaults
The disturbing news from Mexico, Vene-
| zuela and the Balkans, therefore, had q
direct interest to lending institutions in
| London and Paris, and had an influence
on the renewal of sales from those sources
| In the New York market.
| The showing of the great foreign gov
ernment banks is significant of the ex-
| tensive preparations which have been
made for the expected strain of the COM
| ing autumn. Reserves and bullion hold
| ings of the Bank of England exceeded
those for any August since 1896. The Ger
man Imperial banks gold holdings have
risen to new record figures for many sue
| cessiVe weeks. The Bank of Frances
| holdings of gold now stand at a record
for this season, except in 1909. The fact
that it is having its accumulation of bai
| gold coined into French money is cited az
evidence of a determination to retain its
holdings. There is no sign in fact of any
| intention to let down official discount
rates, in spite of the great strength In
conditions of all the great government
| banks.
| The New York clearing house banks also
While now stronger in reserves than a
year ago, have been pursuing a cautious
policy about putting out new loans eX-
cept for short periods. The placing OF
government funds with southern and
western banks promises, however, to re-
leve part of the expected demand on New
York cash reserves. The engagement oil
gold in Argentina for shipment to New
York marks the reopening of a source OF
| supply that has been closed to this mar
| ket several years past.
| Indications pointed to further deteriora-
ton Of the corn crop and apprehensions OF
damage from the spread of the drouth
| to southwestern cotton states.
| Copper and electric stocks responded to
good trade news The steel trade feels
anxious over the question whether buying
| is to be stimulated by slight price conces-
1 aOnS.