The age-herald., 1901-12-13
LIQUIDATION FELT :. IN STOCK MARKET Call Loans Run Up to 12 Per MANY LARGE SHORT LINES outao of Gold Continues In Spite of
 Need for Money, the Day Show
 Ing Withdrawal of Z.,s. $5oo,ooo.
MANY LARGE SHORT LINES

New York, December 12.-SpeculatiVe liauidation continued in the stock market today induced by the stringency in money which ran the call loan rate up to 12 per cent at one time and forced good share of liquidation. Other selling was pre- cationary in fear of still more stringent conditions in the money market. A very weak short selling was carried on by the bears and there was put out very large short lines later on The market turned and the bears found they had been fol- lowing the decline too closely and they helped on the rally by bidding against each other to get back stocks The rally came when the banks came into the ex- change for the first time late in the day and offered large sums at the prevailing rate which was at the high level With the satisfaction of the demand of those offering, the rate fell away and the pres sure on the stock market was quickly relaxed. There was only one rally. This was not fully held and the market closed irregular. The fractional advances which had been established on the rally were wiped out before the close and losses
 
 is nothing obscure about the situation of the money market. With surplus re- serves shown to be below S,000,000 in last Saturdays bank statement and with large reasonable requirements for credits known to be impending, it was obvious that the money supply would be limited. The outgo of gold is continuing in spite of the need for money. the day showing a withdrawal of LOGO from the sub- treasury for shipment on Saturday said to be for. Brazilian need The renewed demand from the interior is an unexpect- ed development and was continued today with the transfer of s100,0oO to New Or leans. The redemptions of government bonds are not sufficient to offset the re- quirements of the sub-treasury as Is shown by yesterdays net gain by that institution of $438,000, in spite of payment in redemption of bonds of upwards of s1,5O0,000. Today's payment for the same account of over half a million therefore, affords but little relief from the drain upon the market on account of the rou- tine sub-treasury operations.
 The available supply of government bonds for redemption has grown exceed ingIy scarce, and not much further re- lief is expected on that account.
 , The anticipatory payment of govern ment interest will not be available to the money market until next week. The speculative liquidation, both in stocks and grains, is presumably effectfng some au- tomatic relief to the money situation but the large sums which are taken out of the call loan money market are placed in time loans, rates for which have ad- avanced to per cent for the shorter pe- sriods. The net effect on loan accounts of the banks is, therefore, problematical Besides the general influence of the mon Fey situation there was some special weak ness shown by New York Central at a decline of s3A on account of the restric- tion of action by the directors of the Vanderbilt roads at today's meeting to an advance in the dividend rate on Can ada Southern. Northwestern dropped AZ and Omaha 6. Pennsylvania and Norfolk Western fell over points on account of the heavy outlay announced for the Hud- son River tunnel, and the belief in the purchase of the Pocahontas Coal Com pany by the Norfolk and Western. A de- cline of 216 in Manhattan led the weak ness in the local fractions. Among the industrals Colorado Fuel fell 6s4 on ru- mors of dissensions in the corporation. General Electric lost 8; American Hnseeu preferred D. and Tennessee Coal 23s with out special explanation. The general range of declines ran from 1 to 2 points, Louisville at one time falling 2Ss. The extreme losses were much modified Ny the final rally. Amalgamated Copper ffuc- tuated from a high level of 71% in the morning down to 67 in the afternoon, closing at 6S1s, a net loss of 21s
 Bonds were active and weak. Total sales, par value, $3454,000.
 United States bonds were all unchanged on the last call.