The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-12
GENERALIZATION
IN WALL STREET
Volume of Dealings, However,
Went Over a Million Shares
SECURITIES ARE UNL0ADED
Throwing Upon the Market of This
Volume of Liquidation Met With .
Poor Absorption and Violent
Declines Resulted.
SECURITIES ARE UNL0ADED

New York, December II. = The stock
market had a demoralized appearance at
times today when an eager unloading OIL
securities was in progress without re-
gard to prices. The volume OF dealings
rose to- over a million shares, or ABOUT
double those of yesterday, which again
we're more than double those OF the day
before The throwing upon the InarkeI
OF this greatly-augmented volume OIL
liquidation met with very poor absorption
rover and violent declines were the re-
suit. There were points in the market
where better resistance was shown than
in others, notably among the Pehhsyi-
vania group, Reading, Amaigahateu
copper srd sugar. The last Iiameu spocA
closed the day with an actual net gam
Of n small fraction On the other hano'
The Rock Islands, United States steer anu
Pscifcs generally proved easily winner
able. The extreme decline IN ROCK lslahu
common was As and In the preferred IA
The final prices were respectively rs ana
2 higher Than the lowest Steel common
lest a points and the preferred 2ss, and
their final prices were only Fraction
1c1ted condition of these stocks had
strong sentimental effect on the whole
market. The Venezuelan situation exert
ca only a sentimental influence. Inc real
motive for the precipitate selling was the
e-roving conviction that a further extern
eive loan contraction will be necessary TO
meet 3he requirements for MONEY DE-
tween now and the first OF the year.
There vss more or less forced liauida-
tion from the refusal of lenders to extend
maturing loans, but many holders We're
moved by apprehension that the same
conditions would shortly become effective
IN their own cases, so that they threw
over large holdings. There were some OF
the largest lenders in the street also
who withheld their funds from the time
loan market with the aVowed intention
of waiting for higher rates on time loans
This process served to keep some supply
in the call loan market. AS high as per
cent was paid, however, for call loans
Time loans for short periods were practi-
ca1ly unobtainable and rates were very
firm for the longer periods.
The rates quoted were purely nominal
and all sorts of devices were resorted 10
to increase the actual rate of return over
the nominal interest rate, such as charges
for commissions, and implied agreements
on the part of the borrower to Withdraw
only certain proportion of the account
loan. The time loans maturing at this
time were the immediate cause OF the
embarrassment of holders of stocks. Ru-
mors were current of the liquidation of
a loan of several million dollars to sin
gle bank which necessitated heavy run
on collateral. A serious feature OF the
incident was that this collateral included
many hundred shares of the stock of the
bank calling the loan, which was sold III
the open market. Money brokers re-
ported that there was not much calling
in OF money placed on call and they also
reported that where maturing time loans
to the local banks had to be paid off, they
were unable to secure accommodation for
borrowers from interior banks. The rate
paid in such cases was considerable above
the nominal rate. Where the local banks
are lending at all, it is simply to supply
the urgent needs of their regular CUSTOM
ers for routine business purposes.
Sterling exchange remained firm today
and opinions were expressed that more
gold would be sent to South Africa. The
retention of the four per cent of the
discount rate by the Bank of England is
believed to be an indication of confidence
that the South American demand upon
London for gold can be diverted to New
York The sub-treasury continues to
withdraw large amounts from the market
and all rumors of relief measures by the
treasury department met with denials.
Today's extreme declines reached from l
to points quite generally, and in some of
the less active specialties ran from 4 to ~.
The tone at the close was feverish and
unsettled, but quite materially above the
lowest.
Bonds were weak in sympathy with
stocks. Total sales par value "a, $40 600.
United States 3s and old As, coupon, de-
clined a on the last call.