The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-09-16
FINANCIAL REVIEW
High Call Loan Market Caused Heavy
Liquidation of Holdings

New York, September 15.-Bradstreet's
! Financial Review tomorrow will say:
| Variations between strength and weak
pess in the stock market have been more
than usually sharp during the last six
days. A higher call loan market at the be-
ginning of the market caused heavy liqui-
dation of public holdings of stocks and gave
opportunity for successful bear attacks by
! professional operators. The decline in
prices thus brought about was checked,
! however by the somewhat better tone,
which appeared in the call loan market on
Wednesday following the announcement
that the secretary of the treasury would
anticipate payment of October interest oil
the per cent. government bonds.
Covering by the short interest supple
menting renewed bullish manipulation by
the pools in several stocks, thereupon re-
suited in a general recovery throughout the
list This lasted, however, only Thursday
afternoon, when tine fact that The St. Paul
directors made no increase in the regular
2H per cent. sem-annual dividend on that
stock, as part of the street hoped they
would, resulted in renewed selling of the
granger stocks and some further losses in
quotations throughout the general list On
Friday the unsettling factor was the con-
tinued weakness of Brooklyn Rapid Tran
Sit which caused declines in other stocks
brought about bearish close in the gem
eral market. The rise of can loan rates
this Week was, of course, foreshadowed by
the bank statement of last Saturday. The
reduction of the bank reserves to nearly
legal limits contained a notice That should
the demand for funds at all interior points
continue with anything like its recent VOL
ume, the New York banks wifi be obliged
to reduce their outside call loans to the
stock market. This is what has occurred
this week, though to what extent bankers
have called in loans will be probably ex-
aggera ted.
The quotations of as high as per cent.
made foC call money at the stock exchange
on Tuesday and Wednesday would, how
ever, represent to some extent the tenn
rorary over-anxiety of borrowers, and in a
certain degree also the manipulation of
bearsh speculative interests. There was,
in fact, no dearth of money, nor was the
flrmness in rates accompanied by any par
tioular evidences of increased discrimina-
ton in regard to the quality of collateral.
Some other large amounts of money are
said to have been loaned in the New York
market this week by Chicago institutions.
but this assistance was not important, and
the quoting down of money to per cent.
level was largely the result of the action
referred to above, taken by Secretary Gage.
experimenting the discovery by the street
that any acute fears on the score Of
stringency in money were premature.
The decline in exchange rates, which was
one of the results of the rise in interest,
led to some discussion of the possibility of
gold imports 1t is, however, generally con-
orally concluded that at the present time
a movement OF that kind Is unlikely, mas
much as the situation in South Africa and
the financial position at Berlin still impose
caution on tho international money mar
kets and would produce resistance to any
movement of specie to this country.