The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-21
STOCK MARKET IN
HANDS OF TALENT
Not Much Significance to the
OesuItory Trading
AN ATTITUDE OF WAITING
Rank Statement Emphasizes the De-
STABILITY of Conservatism in the
Use of credit-Money Pool
Held Up Liquidation.
AN ATTITUDE OF WAITING

New York December 2O-There was not
much significance to today's desultory
trading in stocks, which was almost
wholly in the hands of professional opera
tors. The market is disposed to be on an
attitude of waiting after the weeks COW
ering movement, realizing that the money
market still has heavy demands to meet,
notwithstanding the feeling of greater
confidence in its ability to do SO as
result of the existence of the bankers
protective pool The bank statement en-
phasizes the desirability of conservation
in the use of credits. The loan contrae-
ton of $3,510022 was received. with salts
faction, but the resulting decrease in re-
serve requirements was still insufficient
to offset the shrinkage in cash, whlch
was 81, 1852 100. This still leaves the sur
plus at over ss,OOO,O00 compared with So'-
5,S27 year ago. Next week Slo'VUo'ooo
subserintions to the western Maryland
syndicate must be met, while other syndl-
cate requirements are making prepara-
fions for the yearly disbursements. The
stock market rallied sharply after the
SelllnR InclQ6nI u lllt jain NA4-
closed firm A sudden squirt in sugar to
l29 helped the final rally. That stock had
been strong throughout, apparently on
the ground of the prospect of the adop-
ton of the Cuban reciprocity treaty
There was also an animated speculation
in to-days Pacific list, which rose TO
Ala then fell to $3.50 under very heavy
offerings. There was some investment de-
mands for bonds which were firmly held
The stock market opened weak, with a
threatening break in prices, which prom
ised a renewal of the demoralized condi-
ton of last week during the period OF
forced liquidation.
The announcement was made Monday
for the formation of a bankers protec-
tive pool, the subscriptions to which
amounted to s5O,OOO,00O This sum was to
be placed at the disposal of. President
Baker of the First National bank; Presi-
dent Stillman of the National City bank
and ]. p Morgan as a-committee, and to
be liable for loans on call in case of an
emergency in the money market. The
liquidation in the money market was i'm
mediately checked and some recovery
sued. The effect of this measure was in
some doubt for two days following, but
it was ultimately the cause Of restoring,
a degree of confidence. Supplemented by
other favorable factors the result was to
remove the general feeling of depression
and to induce q rapid recovery in the
market. This ensued without dollar of
the $50,0O0,O00 being drawn upon. The
knowledge of the existence of this reserve
fund was contiguous and served to induce
free offerings of funds from other sources
land to unlock some sources that had been
jealously guarded either from timidity or
from a desire to take advantage of higher
rates which were quite generally expected
to rule before the end of the year. Rates
for money have steadily declined during
the week. six months loans being shaded
to below per cent and the premium on
loans for shorter periods has disappeared.
Upon the first announcement of the for
NATION of this bankers, pool there was
some disposition TO attach a sinister sig
nifcance to it as a symptom of a more
serious state of affairs in New York than
had been generally, expected. The meas
llre does not differ, in kind or degree from
those adopted at previous times of crisis
except that heretofore the measures were
in the hands of the clearing house ,au-
thorities, while in the present instance
the management is confined to private
hands. Inquiries poured Into New York
from all quarters as to the call for such
important provisions. These seem to have
met with satisfactory response and the
feeling of confidence grew that the year
end settlement would be met without
trouble. Besides the strong sentimental
effect of the protective pool the actual
developments of the week end tended to
strengthen the condition of the banks.
Receipts of currency were large from
the interior and the drain by the sub
treasury was much relaxed Part of the
government requirements seem to have
been drawn from other centers. and large
pension payments at New York have re-
leved the banks. One of the most reas-
G,lrino fap ctr in ha r,1np Gil, -.
been the continued softness of foreign
exchange markets, Notwithstanding the
easier tone of the loan money market.
This has been partly due to larger supply
of grain bills, and 1t is hoped the sharp
break in the corn market will result In
increased taking for export and an addi-
tional replenishment of the exchange
market 1t is manifest that the New
york bankers have been able to negotiate
additional credits in foreign markets as
well as to obtain extensions or maturing
loans, which has been difficult to do for
some time past. London has been MOI
crate buyer in the New York market. and
the proceeds of the sale abroad of the
ten-mtllion issue of Pennsylvania car
trust certificates has been partly avail
able i'll the exchange market. A willing
ness on the part of the foreigners to make
new investments in our securities, which
they have conspicuously refrained from
doing at the high level of prices recently
prevailing, would be a development of
prime Importance in providing means to
settle the somewhat overstrained foreign
credits. An almost superstitious dread
attached to the approach of December H.
the seventh anniversary of the so-called
Venezuela panic due to President Cleye-
lands message on the boundary question.
inc passage of the anniversary on We'd
nesday without trouble undoubtedly
prompted buying Of stocks on the part
OF those whose fears had been aroused.
very large short loans were covered
throughout the week. and this was a
substantial aid to the recovery espe-
cially in some speculative favorites where
organized pools have directed a campaign
against the shorts. o.
The bond market moved in sympathv
with stocks. ss. ~
United States As declined u per cent as
compared with the closing call of last
All kinds of cuts Age-Herald en-