The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-29
MARKET RECEIVES
STRONG SUPPORT
Rock Island and AmaIgamated
Were the Leaders
CLOSING TONE WAS FIRM
Market Halted In an Uncertain Way
Before Publication of Bank State
ment, But Soon Rallied I'm
der Good Backing,

New York, December 27.-Ths Stock
market halted in an uncertain way today
before the publication of the bank state
ment and after a dip, following the pub
LEGATION was strongly supported and closed
firm at general reeoveries. Rock Island
and Amalgamated were effective leaders
in the recovery. The ~ point rise III
Rock Island had no other explanation
than a good -a-4e~nent of earnings tor
November and claims for very large
future earning. The buying of the stock
was continued and concentrated and was
attributed to western orders. Inc move
ment in amalgamated was reported u NC
due TO buying effect on rival interests
which was offered as corroboratiVe eVl-
dence of rumors of an agreement 10 emu
the copper was by arbitration Amaisa-
nation interests put out disclaimers OF
+hesa rumors. The stock advanced 5Ss
=, very heavy buying There was pal
pable profit taking in Brook'yA transit
Reports in the west of a threatened
breach In railroad relations growing out
of the recent contest in Colorado fuei
caused a break in Denver and RIO Granoe
nerferred. The decrease of over $zOoo''oo
in banking reserves was larger than ore
sbadowed Some relief was felt, however
ar the decrease in loans, although 1t was
small as there was some apprehension
that loans should be expanded curing
The week to obtain funds for the nquida-
ton of foreign obligations. The heaVy
drop in cash reserves, and the enormous
expansion in credits of the Bank OF Eng
land and Germany attracted attention.
This is not an abnormal at the end of the
wear of the great central banking in
stitutons abroad, and there is always
quick and violent return funds into the
reserve after the turn of the year. The
retention of the per cent Bank of Eng
land rate, however, is not OF much sisni-
feanee as the bank has been charging
AZ per cent. Another 100000 was trans
ferred to New Orleans through the cub
treasury today and the squeeze Of De
cember shorts in corn disclosed the posi-
biity of an emergency demand from Chi
cago for funds. A feature of the day was
a number of sharp advances IN co 'spicu-
Gus stocks.
The weeks stock market has shown the
normal repression caused by the interrupt
tion of a mid-week holiday, which always
tends to discourage activity. Apparently
the short account predominated in the ac-
counts on Wednesday, and the buying to
cover helped to sustain the market The
professional traders who aim to follow
the current of sentiment, rather than to
consult large underlying conditions, have
been persistent short callers of the mar
ket for several days Their argument is
that the readiness of the market which
followed the formation of the bankers
$50, 600 pool has run too fast and too
far making a fresh reaction probable.
There has been a perceptible check to the
upward movement of prices, but no very
severe selling pressure developed, and the
buying to cover by shorts has been suf-
fcient to afford support to prices. The
strength of number of stocks, all indi-
vidual cases. also has had a sympathetic
effect in keeping UP prices elsewhere
The tightness OF the money market and
the consideration of the heavy year-end
requirements to be met have induced some
caution in the trading and a disposition
to maintain a waiting attitude.
The confidence engendered by the for
nation of the S5O,O0O,O00 bankers pool to
meet possible emergency has not been
seriously disturbed Rates for time loans
have not followed the call loan market
and have been appreciably easier. Elk
cept for some demand for cable transfers
to London to help out the year-end show
ing of London banks in the reserve item,
there has not been a notable demand for
remittance abroad. The suggestion has
come from Berlin that large foreign bans-
ers were cooperating with the pool or
New York bankers in tidng over the New
York money market by refraining from
further Withdrawals of loans from here
at this time. 1t is believed that the de-
mand upon New York has been simply
deferred. The future of the foreign ex-
change market is studied with great at
tention Large hopes are pinned to the
outward movement of corn and cotton to
supply means of liquidating our foreign
obligations. While foreign money mar
kets are always quick to respond to the
disbursements which come with the turn
of the year, it is recalled that various
gov eminent loans have been awaiting this
tesier condition of the money markets
including a Transvaal a German and a
French lean, which are expected to call
for an aggregate of perhaps $500, 000 0Oo
In the existing state of the foreign ex-
changes, our market can scarcely fail to
be affected by the conditions in foreign
money markets. Helpful factors in the
market have been the very large anthra-
cite traffic represented by the coalers, the
prospective benefit to the sugar refining
Industry Of the Cuban reciprocity treaty,
iumors CT settlement OF controversies
between the dominating interests in the
copper industries, and assertions of con-
troll secured by Pennsylvania and Read
ing of Brooklyn Transit.
There was some good buying of bonds,
which 1t attributed to investment demand
from capitalists who are anticipating the
distribution of January profits.
United States IS advanced n, and the
coupon S. the new 4s and old As, X per
cent as compared with the closing call
of last week.