The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-22
STOCK Market IN
HANDS OF TALENT.
Not Much Significance to the
DesuItory Trading
AN ATTITUDE OF WAITING
Bank Statement Emphasizes the De-
STABILITY of Conservatism in the
{ Use of Credit-Money Pool
Held Up Liquidation.

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 it's ability to do so as a
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 cohtrac-
tion of $s,51O,O22 was received with satis-
faction, but the resulting decrease IN re-
serve requirements was still insufficient
to offset the shrinkage In cash, which
was 81, 7G2. 100. This still leaves the sur
plus at over $s,OOo,Ooo, compared with 3d.
7S5,327 a year ago. Next week $O'Voo'ooo
subscriptions to the western Maryland
syndicate must be met, while other synd1-
cate requirements are making prepara-
lions for the yearly disbursements Inc
stock market rallied sharply after the
selling Incident to the bank statement ana
~
129 helped the final rally. That stock haa
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-day's Pacific list, which rose TO
41h, then fell to 1885 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
lsed a renewal of the demoralzed 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 $50, 100000 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 ]. 2. 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 en-
sued. The effect of this measure was in
some doubt for two days following, but
1t 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 rapid recovery in the
market. This ensured without dollar of
the $50,O00,000 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
and to unlock some sources that had been
jealously guarded either from timidity or
from desire to take advantage of higher
rates which were quite generally expected
to rule before the end of the year. Rates
ctn
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
nihcance to it as a symptom of a more
serious state of affairs in New York than
had been generally expected. The meas
ure 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
effect of the protective pool the actual
developments of the week end tended to
strengthen the condition of the banks.
Receipts of currency We're 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-
lieved the banks. One of the most reas-
N ha eff I,oo
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 it 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 a mod
crate buyer in the New York market, and
the proceeds of the sale abroad of the
ten-miflion issue of Pennsylvania car
trust certificates has been partly avail
able in 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
uOlnB at tne nlBn leNel 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 II.
the seventh anniversary of the so-called
Venezuela panic due to President Cleye-
lands message on the boundary question.
The 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 tbis was y
substantial aid to the recovery. esne-
cially In some speculative favorites where
organized pools have directed campaign
against the shorts. =
The bond market moved in sympathy
with stocks
United States As declined u per cant nc
compared with the closing call of Iast
week. - iose