The Birmingham age-herald., 1902-09-28
'FEVERISH TRADING
 IN STOCK MARKET High Prices Attracted and Ren- dered Heavy Liquidation FOLLOWED BY A RELAPSE Dominant Influence Was the Money sltuatlon--Inerease of $f,7s9,7oo
 Cash Reserves Came as
 Total Surprise.
FOLLOWED BY A RELAPSE

New York, September H.-There was very feverish trading on the stock ex- change today which seemed principally que to a contest between speculative in- terests. The operations which were re- sponsible for yesterdays sharp upward movements were again in evidence at the opening. but the high prices made at- tracted renewed heavy liquidation. in- duced by misgivings that the bank state ment would fail to reveal the recupera- ton which was expected yesterday. There was heavy break in prices in progress when the bank statement appeared, showing a surplus reserve re-established of $3,2S662 625. The bull operators thereup- on turned upon their opponents and marked up prices one-half to point at a jump, so that the level of the market was sent back to near last nights level and in some cases above.
 This was followed by a relapse which carried some stocks lower than before and made the closing feverish and un- settled. Louisville suffered to the ex- tent of Az in the late break, owing to the uncertainty whether the minority stockholders are to be allowed to share in the terms which it is reported will be offered for control by the Atlantic Coast Line syndicate. St. Paul suffered an ex- treme loss of over points on account of denials by officials of published reports of a proposed stock subscription right.
 The dominent influence was the money situation. The increase of 700 cash reserves of the banks was total sur prise in view of an indicated decrease of about s40OO0O0. On the other hand the loan contraction of SIS, 352, 600 was not as large as had been looked for. The source of the cash increase was an unexplained mystery. A sharp fractional recovery in lhe sterling exchange market unusual for a Saturday carried rates well away from the gold import point. The bank statement failed to convince speculators that the necessity for further loan con traction has entirely passed. Heavy lqui- dation of securities has been forced on the stock market this week by the call ing of loans by the banks to make up the deficiency in their reserves revealed by last Saturdays bank statement.
 The one point of view of the specula- tors was that the country was in a condi- ton of unexampled prosperity which promised a continued demand and in- creasing value for securities. Powerful combinations of spectators, some of them commanding all the way from $15,- 0O0O00 to S50O0O,000, according to compe- tent estimates, have long been engaged in taking on all the stocks they could carry with all the money they could borrow The cheapness of call money, pending the season of active demand for funds, stimulated this disposition, al- though this deceptive cheapness was in itself due to the expectation of a rise in money rates for long periods and the de- sire of bankers to keep their resources in really available form. The large hold ings of stocks thus take on has the nat of cF ae but they were not taken with the pur- pose of holding, but simply held on mar gin to feed the more substantial invest ment demand expected to develop So long as the banks left the credits undis- turbed with which the pools held their stocks this condition night have been maintained indefinitely. But the deficit on bauk reserves developed late Saturday and the inability to replenish the cash so as to make good the deficiency left the banks no alternative but to demand the repayment of loans.
 The high money rates which resulted tempted depositors of all classes to draw down their deposits to place them in call loans on their own account instead of ac- cepting the comparatively meagre in terest paid by the banks on deposits. The banks were thus compelled to extend the process of calling loans and the money market was thrown Into disorder The process of actual depletion of re- serves has meantime continued though fin a diminished degree. The governments 8 customs returns have continued to run over a million dollars a day, practically all of which are payable direct from the New York banks intp the sub-treasury, and the demands from the interior for purposes of circulation have continued. The internal revenue and miscellaneous receipts can be legally diverted into bank deposits and these are running light. The stringency of money has caused some weakness of foreign exchange, but has not depressed the rate again to the gold import point It has been experienced with the former offers by the trade to an ticpate government interest that they brought little response from bondholders. It is considered improbable that the banks will put out again immediately in the stock markets the loans which have been recalled from there this week. For these resolutions the opinion over the fu- ture of the money market and its effect on the stock market is still uncertain
 Speculative bonds have been freely sold during the week and some high grade bonds also have reflected pressure. United States 2s, s. 5s and the old As, coupon advanced A and the old 4s, registered, 1b as compared with the close of last week