Show RISE IN I PRICES FOLLOWS PANIC Action of Last Weeks Stock Market Accepted as Proof of Better Conditions New ew York Dec 7 IThe The brisk rise in prices of securities in the stock market last week was accepted as convincing proof of the lifting of the tile extreme pros prostration prostration prostration resulting from the late financial crisis notwithstanding the general recognition of the fact that the recovery reco ery was helped bj by b manipulation of professional market operators and owed much of ll It its vigor to the necessities of ot an uncovered erEd short interest which the rise rI in prices pr ts tsI and the corresponding reduction of mar margins margins I gins gln on loans obliged to cover This is isan isan isan an invariable phase of oC the first 1 from front panic conditions In securities mar markets markets markets and is not less a reliable index in Ex of the cessation of or forced liquidation and of Improvement in conditions The general news has In fact shown the progress of rehabilitation going on and of or confidence confidence confidence dence and credit being reestablished al RI although though several of the weeks happenings served to counteract and delay the ef of effects of the improvement For instance In connection with the expected call of the comptroller of the currency for Cor re to reports reports ports of condition of national banks bank there sprang up upa i a renewed demand for I currency which served to raise rai e the pre premium premium early carl In the week Quick Relaxation This Induced fresh engagements engagement of gold goldIn In London for Import Imp rt stiffened the Lon London London London don discount rate and It Is la believed was wa an Influential factor In delaying the ex expected expected peeled reduction In the Bank of Eng England land lands discount rate which the strong position of or the institution seemed to war warrant warrant warrant rant With ith the Issuance of the ex ox expected expected call of the comptroller for the con conditions conditions of the banks at the close of busi bUlli business business ness nells on Dec S 3 I there was a relaxation In their conditions and the supply of bank credits became appreciably In Increased Increased creased d Banks Invariably put out cred credits credIts its more liberally following a report to the comptroller but in this Instance there was an additional Influence of the strong position of banks outside the central re to reserve rEserve serve clUes cities which was revealed by the reports to the comptroller The banks of or the country either actu actually actually ally all beleaguered by frightened depositors depo or In dread of such a contingency hast ened to fortify themselves to 10 the limit of ot their abilities b by withdrawing depo depos deposIts its from central reserves National bank outside nt ot the reserve cities required t keep a 15 per cent reserve are allowed to t keep of the time reserve on deposit de deposit d dP posit P In reserve cities while banks ban In Inre reserve re erve cities l obliged to maintain S 5 per percent Pf cent of or reserves re are allowed to keep kee p half balf the amount on deposit in central r re n reserve serve cities where It figure In m uw tile r rr n serve of banks and ana aa is a basis for lor loan ons The rush ru h to withdraw these th deposits ant anI get et them into their own custody precipitated precipItated precipitated the results now to so well known sown November Bank Clearing Clearings The most moet immediate consequence to th the country of or this revolution of I arrangements arran ments of bank deposits I is 18 Men in ma inthe Inthe mathe the figures of November bank hank clearing which fell foil 29 2 per cent compared with November of last lut year Compared with wit h the week ending Inding Oct II the country A bank clearings for the fourth week r o November had shrunk almont although the holiday in the latter week must be he allowed for forThe forThe forThe The Iron Age Ace reports the volume of new orders orden for few lew ew Iron hon and steel stOol products last week to be about 40 per cent of ef the tho th trades trade capacity and with a 1 reduction of n i production closely clo ely corresponding to 10 t this figure Ci Railroad traffic officials agree that be bp beyond beyond yond the thc diminishing ot of oW old bus busi business 00 busness ness with which they arp are now there ther little new coming into frito sight The Th causes MUses which produced re to results r suits are seen n to be he in IOU et ef f cor eer correction correction in the easing of money mo rate ratel tin tio decline in excessive premiums on oa ex cx exchange change at interior cities the reduction of 01 o othe the premium on currency and the pa of the fears of depositors regarding banks With the removal of tho tb causes which induced the prostration the way is III opened for calculation of the extent and tho period of or the restoration which is to tel fol follow rollow tellow low and it Is 15 I to this that the peculation thin tion in securities Is now addressing UN IM self |