The Birmingham age-herald., 1903-03-10
STOCK MARKET
 SUFFERS SHOCK On Decline Bears Took Advant-
 age for Profits. LOANS CALLED FOR BANKS There Were Vigorous Contests of the Elements During an Hour or Activity, But Market Closed
 Weak and Unsteady.
LOANS CALLED FOR BANKS

New York. March 9-The action ol lne sto,k market today verified a Wal sees' aphorism, that the expected does not hannen Disorganized markets and violent declines were looked for today by com mon consent. The event proved that open ing prices where there were declines were the lowest. The factors that made TOT re- coverv were at work from the outset There was d vigorous contest or the eie- rnents for reaction and recovery during an hour of furious activity. By that tune the reactionary tendency had been arrest ed and the recovery gathered force for the rest of the day. The close was rather unsteady but not far from the top level. The stock markets habitual disinclination to do what is expected is due to tho keeness with which operators are able to anticipate the future. It was clear enough from the weakened position of the banks as shown by Saturdays bank statement that liquidation of stocks must be re- sorted to. This expectation proved cor rect today and the banks did in fact call loans to a very large extent and stocks were thus dislodged and forced upon the market But the keen foresight of the bear party had evidently been antcipat- ing the coming of this forced liquidation by their large selling of last week, so that they were ready to buy stocks in order to cover their short contracts and take their profits today. Buying of this char acter forced fractional advances in Union Pacific and Southern Pacific in the very face of the opening tide of liquidation, which was aggravated by the accumula- Of mail telegraph and cable from all quar- ters It also developed during the day that while the local banking houses were calling loans, the foreign banking houses in the city were in abundant funds. They were able to make loans on call at the opening al per cent.
 The exchange market was freely re- sorted to to replenish the fund of this lending, so that the call loan rate was forced down to 6 per cent even while ac- tive borrowing of the day was still in progress, and money rates broke to nominal figures after the demand had been satisfied. The sterling rate broke GO to 65 points under the flood of local bills offered. Posted rates were twice reduced half a cent al a time At the same time sterling declined at London and Paris, indicating the extension of the New York pressure over a wider field. New York exchange at Chicago also recovered to par compared to 70 cents discount on Saturday. With the immediate apprehen- sion regarding the money supply thus re- lieved, the pressure from the shorts be- came more acute. and later in the day they rushed up Southern Pacific "A over Saturdays level. The rise in Union Pa cific reached over 3 points and in St. Paul. Manhattan and Amalgamated cop per oyer a point. Manhattan was a strong feature all day, said to be on pool buying, the opening rise in the stock be- ing 1A. The violent advance in the price of copper both here and in London helped the rise in Amalgamated. In the active list the earlier losses, which ran from l to points in many cases, were gradually wiped out and the net gains reached as much as point in quite a number of leading railroads and speciaties. The in- fiuence of the failure in the dry goods trade announced on Saturday afternoon, which had been much dreaded proved to be very slight owing to the time offered to secure explicit knowledge of the fail ure and the evidence that the trouble had been strictly localized.
 The bond market, which had been quite weak during the morning, recovered in sympathy with stocks. Total sales, par value. $3,1S0000. United States bonds were all unchanged on the last call.