The Birmingham age-herald., 1902-12-14
STOCKS CLOSE
 ACTIVE BUT WEAK There Were Several Alternate
 Advances and Declines SELLING STARTED EARLY
SELLING STARTED EARLY
Severe Losses In the Stock Market Have Resulted From the Weeks Trading as a Result of the
 Crisis in Money.

New York, December 13-The small de- crease in the loan item of the banks dis- closed by the weekly statement today proved a disappointment to spectators and stocks were sold freely after it's pub Iication. The market closed in conse- auence active and weak. Earlier in the day the movement was nervous and un- certain on a rather active market. There were several alternate advances and de- elines before the final active selling move- ment The volumes of the weeks liquida- tions in stocks in the. losses entailed were felt to promise a more promised loan contraction than reported, which was k2, 605, ,5O0 In yesterdays late drive against the bears the impression got around that an increase in surplus reserves might DC disclosed Today by reason of heaVy loan contracted and some special move- ments of cash from nearby points, the speculators were the more disappointed for this reason over the actual showing. It is possible that the actual loan con traction is understood, as the heaviest iouidation was in the latter part of the week and thus figured only for the part of the week in the statement of aver- ages. But there Is also the possibility that the loans called from the stock mar ket were put out again to syndicates and otherwise. A feature of the days news was a number of additional calls for installments of syndicate subscriptions. including the SS,0o0,000 installment on the New York Central bond underwriting which was reported to have caused some surprise to subscribers. At this time there Is no relief in sight from the sub treasury's drain upon the money market and time loans for all periods are six per cent and for shorter periods as high as 8 per cent.
 Severe losses in stocks have resulted from the weeks trading as a result of the crisis in money. The week started off with some show of resistance to depres- sion, chiefly shown in Q very dull market, showing the determination of holders not to sacrifice their holdings at a time when the absorptive power of the market was very slight. Upward movements in some of the speeialties from individual cause, notably in sugar and amalgamated, helped the contest against reaction and succeeded half way, but by Wednesday, afternoon the market had turned weak and 1t became evident that the hopes of tiding over the money requirements until the turn of the year, would have to be abandoned
 The acute phase of the Venezuelan sltu- Btion had considerable effect upon the market principally of a sentimental char Rcter, but no other cause was needed for the break in prices than the entire inabil- lty of borrowers to secure funds with which to carry Cn their holdings The fact has long been known that the money mar ket would be subjected to severe pressure to meet year-end requirements. A con tingency thus definitely foreseen is al- most irvariably provided for in financial affairs, and the apparent effectiveness of the resistance which has been established to the decline lulled sentiment into Eense of security that the worst had been passed. The incidents which had the principal influence in disturbing prices were the transfer of S400. 900 to San Fran cisco on Monday and the shipment of S1,- 0o0,G00 gold to South America in the mid dle of the week. The large movement of gold to San Francisco was out of the or 6iDary and no clear explanation has been offered fer it. It has been surmised that commitments for land speculation on the Pacific coast have created the special need, and this has given rise to some fears that the same condition exists to wide extent in other parts of the west. thus aggravating the tie-up of cars. which is believed to be at the root of the present trouble in the money market. The move ment of gold to South America disclosed that the London money market has the DOW CT to divert the demand and satisfy claims upon Lcndon through New York
 I he heavy customs payment covering during the week have made inroads upon the bank reserves, and internal revenue 1equireme nts have also been thrown upon New York barks by orders from interior correspondents to make payments at the New York sub-treasury Fart of the weeks's heavy liquidation of stock is be- lieved to be for new projects and to meet syndicate calls for payment of srbscrip- tiers, which the subscribers had hoped would be unn zee ssary in case of a prompt fotation of the new securities involved. All considerations other than the money situation have practically been ignored during the week.
 Bonds have been sold during the week like stocks. United States As declined N ger cent compared with the closing call cf last week.