The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-12-13
Stocks, Bonds and Money

Z NEW YORK, Dec. E.-Specu-ative liqui-
dalton continued in the stock market
today, induced by the stringency in mon.
ey, which ran the call loan rate up TO u
per cent at one time and forced a good
share of liquidation. Other selling was
precautionary, in fear of still more str1n-
gent conditions in the money market. "A
very material element in the days weak
ness was the short selling by the bears
who became emboldened by the lack OF
support in the market and put out very
large short lines. When the market turn
ed 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 advance came when the banks
came into the exchange 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 by these offerings, the
rate fell away and the pressure on the
stock market was quickly relaxed. The
dealings by the bears was the one ele-
ment in the rally. This was not fully
held, and the market closed irregular;
The few fractional advances which had
been established on the rally were wiped
out before the close, and losses are
shown practically throughout =.
There is nothing obscure about the sit
uation of the money market. With sur
plus reserves shown to de below $7,0900OO
in last Saturdays bank statement, ana
with large seasonable requirements LOT
credits known to be impending, II was
obvious that the money supply would De
limited. The outgo of gofd IS continuing
in spite of the need for money, TO-DAY
showing withdrawal of $500, OO0 from the
subtreasury for shipment on SATURDAY,
said to be for Brazil The renewed de-
mand for the interior is also an uneXpect-
ed development and was continued today
with the transfer of 100000 to New OF
leans The redemptions of government
bonds are not sufficient to offset tAG re
quirements of the subtreasury, as is
shown by Yesterdays net gath by that
institution of $43S, 900, in spite of payment
in redemption of bonds of upward OF
aaSSount of over 500, 900, therefore, af-
fords little relief from the drain on the
market. on account of the subtreasury
operations.
bonds for redemption has grown exceed
ingly scarce, and not much further rel1ef
is expected on that account. Ihe an
ticipatOry payment of government inter-
est will not be available to the money
market until next week. The speculative
liquidation, both in stocks and grams, Is
presumably effeeting some aut.ss atlc re-
lief to the money situation by large sums
which are taken out of the call loan
market and placed in time loans, rates
for which have advanced to 6 per cent
for the shorter periods. The net efIect
upon the loan accounts OF the DaHkS u
therefore problematical.
Resides the general influence of the
money situation there was some speeiai,
weakness shown by New York Central
at a decline of 3sz on account of the re-
striction of action by the directors OF
the Vanderbilt roads at today's meetings
to an advance in the dividend rate on
Canada Southern. North Western fell 4
and Omaha 6. Pennsylvania and Norfolk
& western fell over points on the heavy
outlaws announced for the Hudson River
tunnel and the belief in the purchase OF
the Pocahontas Coal company by Inc
Norfolk & Western A decline OF 21s IN
Manhattan led the weakness in the local
fractions. n,,o
fell 6% on rumors Of discussions in the
corporation General Electric lost 8,
American Linseed preferred 5 and Ten
nessee Coal 27s without special explana-
ton. The general range of declines ran
from 1 to 2 points, Louisville at one
time falling 26. The losses were much
modified by the final rally. Amalgamat,
ed Copper f1uctuated from a high level
of 71% in the morning, down to 81 in the
afternoon, closing at 6S1s, net loss OF
Bonds were active and weak. Total
sales, par value, $685. $1,000. United States
bonds were all unchanged on the last
call.