The Birmingham age-herald., 1902-11-16
IMIIrH ERVnIISNFSS UiUVuHLIlTUUvlsLOS
 IN STOCK MARKET
IErratic Punctuation Both Ways
 During Session
CLOSE AT A NET ADVANCE
Bank Statement Was the Deciding Factor In Driving Bears to Cover.
 The Week Has Been an f EventfuI One.

New York. November 15.-There was etill much nervousness reflected in the stock market today, and there were er- eatic fluctuations up and down through Iout the session. The market closed firm. however, and at net advances of to 2 points over last night for the principal etocks. The bank statement seemed the kieciding factor in driving the bears to cover. The loss in cash on the week was rather less than expected, but the loan contraction was smaller than was hoped Nor in view of the heavy liquidation In Nhe stock market during the week. The market reacted sharply immediately after Nhe publication of the statement. But It was argued that the heaviest liquidation Nwhich occurred in yesterdays stock snarket would only figure for one day in fhe weeks averages of the banks, 80 thot the statement probably understated hhe strength of the banks.
 The turn of tho flow of the currency from the interior to New York aroused hopes of relief of the money situation from that source. The extent of the re- cent decline and the length of time 1t has continued, made an upward reac- fion seem logical to professional traders ekilled in the reading of symptoms or speculative markets. It Is not unusual for a downward movement to culminate with such a slump as that of yesterday. Bankers were quite unanimous in deny tng any occasion for alarming rumors of financial unsoundness in that portion of the financial world, and their assurances had a relieving effect on sentiment. It is pointed out that prices had fallen all the way from 15 to 30 points, principally ac- tive stocks from the high level of the year. It also is fact that at the low level of Friday, although many stocks reached the lowest prices of the year, there were many of the speculative fa- Norites and those among the stocks which have suffered most severely from liquida- tion that were still from 9 to 19 points above the low level of the early part of the year.
 The wholesale sellers of stock seem to have acted, however, on their own con- victon that there was no prospect of dis posing of their large holdings at profit, where there was the danger that condi- tions might develop which would necessi- tate still greater sacrifices in order to dispose of them. The conviction gained ground that prices had been pushed toe high, even to discount the many favorable future developments expected. The high level of prices were generally perceived to be due to large buying by half specula- tive combinations, which did not repre- sent investment demand for permanent holdings. Besides buying their large holdings the speculative combinations had exhausted every device of manipula tion to lift the price level of their se' curities in the market It was realized also that borrowed money represented the sources by which these enormous blocks of stock were held on margin. The situation was thus one of a threatening weight overhanging the market and liable ito be precipitated upon values at any time The market values of securities were thus disturbed as an unstable basis for credits. This distrust has been plain 1y manifest on the part of foreigners The demand for American securities ir foreign markets has fallen to neglible quantities Foreigners have loaned money freely to American bankers, which have been employed by syndicates in the flota- tion of many new securities. but they have looked to old and tried securities as collaterial for their loans, and have shown mo disposition to embark their money in direct investments in new American secu- rites. Considering the large amount of idle capital abroad, particularly in France, the diminished trade balance in favor of this country, and the large sums due foreigners by American borrowers, this refusal of our securities Is notable
 Bonds have been under pressure, but have not been so freely sold as stocks United States 3s and 5s declined A, the new As half the old As % and the 2s per cent as compared with the last week s closing call.