The Birmingham age-herald., 1905-12-31

end of the week, and thus would have a diminished effect in the average changes for the week as a whole. Total sales or bonds, par value $1. 1.97O,OOO.
 Speculation has maintained bouyant confidence this week In face Of the seVele stringency oe the money market ana or one of two e; isodes that would nave been seized upon to shake coriiueneo nc in ordinary times. The eagerness Of the speculation after chaffing impatiently un- der the constraint of the high money rates and some degree of forced hquldatloh' hroxe through all oppressive influences, and there was a rush to buy spochs s"' rapidly rising prices The demonstratlon was unprecedented in the exper1ence oi the oldest persons and was viewed Wlth unaffected amazement, and some degree of irrenressible anxiety The rates paid for money on call at the stock exchange reached no per cent and 12o per cent as paid privately In times past such a rise fin the money rate has preclpltated hedVy liouidation of stocks and even In the 1uil tide of a rising money market has turned prices abruptly downwards and thrown the market into panicky conditions.
 Rut In strong contrast with former precedents, the speculative position was firmly maintained and rates for money, formerly regarded as prohibitiVe, nave been paid by speculative holders Narlous motives may be distinguished to make up the obstinate confidence with which the speculative position has been maintained. Underlying them all is the conviction that inc conditions of prosperity in the coun- try already beyond all precedent are fdes- tined to a further indefinite expansion. II is asserted that an enormous poteh.iai but waiting demand for securities exists in the country which will be melted by the growing evidence of this prosperity, and aiAYa ff, stock when the seasonable requirements of the money market are satisfied ana when funds begin to flow back Into the chah- nels of the bank reserves.
 It is the conviction of the followers or speculation that the great capitansts or the country have organized thelr lorees and provided themselves with means, 1n- dependent of the exgencies of the call money market to take advantage or any forced selling on the part of less 1ortuiaee holders to accumulate securities. ne eN- pected demand for stocks is relied on 10 absorb present holdings, and to advance prices to an extent that will pay Tor the traction of 1 per cent per day which pres ept interest rates amount to in addition to the prices now paid for stocks Rumor and unverified assertion or expected Heds- ,lres of relief of the money market nave played a part in keeping up the specuid- tive excitement, and in encouraging dls-
  cessant reports have been circulated or the intention of the secretary or the treasury to deposit large amounts or the government surplus in national banks. Rumors were current of the formation or money pool amongst the great New York banks to provide a fund for lending in the stock market as was done Tn the neriod of stringency of 1902. A tacit agree ment was alleged amongst banks, ana great money lenders to restrict the rate 5amanded on standing call loans until inc passing of the crisis. These factors combined to protect the stock market from damaging consequences rom the stringent money market.
 Tine causes of the stringency are sum rarized as great activity in trade ana exnansion in enterprise In all lines, de- Iaved outgo of cotton and grain Snlp- ments by railroad and freight cohees- tjon which limits the supply or ioreish , exchange, the pressure on foreish inoney markets because of the Russian situation and the unprecedented demands of stock sneeulation coming in on an over-extended credit position. The soundness of the foreipn business situation is without question and the Chicago bank uoubies last week, and those at Memphis this week. have not impaired the feeling or confidence But the clearly defined opih- ion exists that the speculative eXteh- sion at this time, in face Of the stralheu money situation. exceeds in boldness and daring the modern history of specuia- tion.
 Dealings in bonds have been moderate and the market has not been free rom depression. .,,.
 United States As advanced 1s and the