The Birmingham age-herald., 1913-07-21
EASING OF MONEY
MARKET IN LONDON
Extent of Stocks Recovery
Depends on Relief From
Money Strain

| New York. July 20.--The weeks revival
In the stock market had it's main incen-
tive in the easing of the money market in
London. 1t is general financial opinion
that the extent and duration of the stock
market recovery will depend for the
present on the permanence of the relief
from money strain indicated by the course
of the weeks discount market In London.
Some of the factors which brought relief
are obviously temporary. As doubt re-
mains over the more permanent effect,
speculative hesitation continues.
The satisfaction of the Berlin demand
for gold on London marks the apparent
completion of the work of recuperation,
In which the Imperial Bank of Germany
has been engaged and allows the diversion
of arriving South African gold into the
Bank of England's supply.
The Bank of France continues its work
of recuperation by further drafts on New
Yorks gold supply. This Paris demand
also may be near to satisfaction, and it
does not preclude the hope that financial
markets may be on the eve of enjoying
the benefits of the conservation and prep
aration which has been going on in the
barking world The liquidatins phase of
this preparation evidently ended some
| time ago.
The stage of restriction of new credits
/
| the new turns of affairs in London. Mod
| crate sums We're placed in time TO am
swer In New York this market for Lon
don account. The future money mar
kets had "A more than usually direct bear
ing not only on the action of the New
York stock market, but on the interest
rates to be paid at interior markets for
holding and moving the crops and for
mercantile uses Back of that stands tho
much stinted requirement for capital out
lay which has halted new enterprises.
How far the iron and steel trade Is to
expand beyond the upkeep requirements,
to which 1t Is at present confined, depends
on the extent of the release of funds for
new enterprises, in the opinion of trade
authorities. That condition is an index
of the whole industrial and commercial
situation
The Balkan settlement, the extent OF
trade reaction in Germany, the revenue
deficit in France and the placing of Eu-
ropean loans for military purposes are
matters of immediate Importance to
would-be borrowers in the United States
The London Economist points out that a
period of high Bank of England rates is
usually followed by period of low ones
owing precisely to the effect. of restric-
ton of credits forced by the high rates
such as the world is now seeing
The stock market, previous to the mid
week revival, showed a series of days
rarely paralleled for consecutive dullness
| The agreement to abitrate the eastern
railroads disputes helped the revival and
| the threat of hitch helped to check it,
! The imposing showing of the country's
foreign trade for the fiscal year was a
| helpful factor Hot weather In the corn
belt was not liked, as prosperous har-
vest is much relied ON to clear the finaE-
cial position.
| Developments in the Mexican and Japa-
nese questions and the slow progress OF
the tariff bill are watched with solicitude.
To such of these developments are un-
| favorable, the stock market showed n
power Of resistance as impressive as was
ii response to strengthening influences.