The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-13
VIOLENT CHANGE
IN STOCK MARKET
Every Stock Dealt in lmme-
diateIy Shot Upward
BEAR EFFORTS OVERCOME
Application of President of Venezuela
for Arbitration of His Difficulties
Was a Favorable Factor On
Exchange Sentiment.
BEAR EFFORTS OVERCOME

New York, December 12-There was a
sudden revulsion of sentiment during the
days trading at the stock exchange
which transformed demoralized market
into what looked like an animated Dull
speculation. Undoubtedly the bear ac-
count which had suddenly expanded to
unwieldy proportions in the last three
days was partly responsible for the sud
den and violent recovery of prices, but
the change in sentiment on the part OF
this element was prompted by the evil
dences of large and influential buying OF
a more substantial character. This was
the signal for the upturn of the market
Before noon there were ragged declines
of all the way from 1 to points in the
prices of active railroad stocks. In the
inactive list, including specialties, the
losses extended to p and % points, the
last named in New York and Harlem
the last previous sale of the stock was
made in April of 1901 at 4SO. Today's sale
was of 200 shares at 400 The sale of Sc
curities of this grade In demoralized
market is generally regarded as the evil
dence of the extreme pressure for money
That there was such pressure today is
beyond dispute, and great part of the
selling was probably without the Tree
choice of the nominal holders OF the Sc
curities The withdrawal of credits from
holders of stock and the practical impos-
sibility of obtaining fresh accommoda-
ton left no recourse but to throw over
their holdings at the best prices they
could get. For time this process was
carried on as 1t was yesterday with prac-
tcally no buyers in the market out at
the extreme decline the buying demand
developed. 1t is probable that the level
of prices in itself served as some attrac-
ton to buyers who have resources IN re-
serve to avail themselves of bargains
The easing of the money situation as
result of the days events, also gave
some distressed holders the power to Sc
cure means to protect their houldlngs
from sacrifice.
The drastic liquidation effected was the
immediate cause of relief to the crisis IN
the money market. An important FACTOR
was the announcement that the ten mil
lion block of Pennsylvania Car trust
certificates, which was taken by the New
York bankers earlier in the week. had
been taken by foreign capitalists. The
street was prompt to jump to the conclu-
sion that corresponding amount of cap
ital would be Immediately released TO
place in the local loan market At all
events the incident helped to relieve
acute anxiety over the money outlook,
ana was promptly lOlloWeu ny an SiAoS-
tive rally. Another influential factor was
the revelation by the publication OF the
preliminary figures of the currency move
ment that the banks had gained some
thing over 81 100000 on the regular interior
movement of currency, thus offsetting to
that extent the loss of s., 10000 on SUBJ
treasury importations and gold exports.
Taken in connection with the probable
loan contraction, a less unfavorable bank
statement is indicated than was feared.
The rise in New York exchange at Chi
cago today from 15c premium to 25c pre-
MUM and sharp fractional fall in sterl-
ing exchange are indications that the
stringent condition of the local money
market is having its effect in attracting
funds from other sources.
That there was some extraordinary de-
mand is evident on the authority of bank
ers The application of the President Of
Venezuela for arbitration of his difficult
ties was a favorable factor on the stock
exchange sentiment. The violent upturn
of prices transformed the earlier losses
into general net gaines, which in some
cases were sufficient to wipe out all of
yesterdays declines Evansville and
Terre Haute was conspicuous for gain
of points, Great Northern preferred 4
per cent, and a great sprinkling of the
leaders of the market of from to 3. The
market closed steady but slightly below
the best.
Bonds rallied from early weakness in
sympathy with stocks. Total sales, par
value, 81, $4,000.
United States bonds were all unchanged
on the last call.