The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-03-19
.CONTENDING FORCES
HOLDING BOARDS.
Closing in the Stock Market
Was Irregular
STOCKS ARE FREELY SOLD
Weight of Opinion Is In Favor of
Somewhat Higher Rates for
Money--sentlmen Seems
Dlstrustfu.

New York, March 1S.-The movement of
the stock market today indicated the ac-
tivity of contending forces in the specu-
lation and the contest between them was
rather inconclusive. The closing was ir-
regular and not far from last nights level
after having been considerably below that
in the early dealings and generally above
on the rally.
Stocks were freely sold during the early
dealings. and the recovery seemed to be
due to proht-taking by the bears who
were disposed to close up their contracts
on the three days reaction preliminary to
the Sunday interval in the market. The
showing by the banks in their weekly
statement which had been counted upon
by the bears to induce selling, and thus
afford them an opportunity to cover,
proved to be not so weak as had been
feared. so the buying by the shorts was
of the greatest effect. The good resist
ance of Ontario & Western to the de-
Ginning tendency, and notable resiliency in
New York Central were also sustaining
forces in the market. The loss in reserves
proved to be but $7,49O,90O in place Of the
estimates running from ten to twelve
| millions, and the contraction of credits
to the extent of s5,241,9OO contributed to
the reduction in deposits, and thus re-
lieved the reserve requirement to the ex-
tent of s., 1906, 925. The reduction of 81
1915 in the surplus brings that item to
| S5,154 IT'S, which Is low for this period Of
the year, with the interior demand for
currency now imminent The weight Is,
| therefore, in favor of somewhat higher
rates for money. But offerings of funds
by the trust companies at the higher rates
may be expected. The usual discussion Is
thus invited of the growing part played
by these institutions in the money situa-
tion as a whole from the showing by the
banks themselves. Foreign exchange con-
| tinued its decline in spite of the firmness
of discounts In London.
Total sales OF bonds, par value, ST.
$4,000.
Speculative sentiment showed itself dis
| trustful of the market from the opening
of the week, but there was good resist
ance to the moderate pressure during the
early part of the week, in the absence
of any unfavorable prospect In the general
business, Industrial and financial condi-
| lions.
With the rise in the call rate for money,
per hand and pressure to sell overweight
| ed the market. The power of the market
| to resist short sales and to absorb the
heavy proft-taking from time to time. and
the constant development of new points OF
strength served however to convince the
skeptical that stocks were being taken out
of the market by the substantial holding
powers, and gave color to the many ru-
mors constantly related of Accommodations
of many stocks for purposes of control
and ultimate plans of combination and re-
| adjustments of relations which were ex-
pected to increase the value of properties.
The partisans of a continued advance also
had on their side of the argument the
unclouded conditions in the business OF
the country. Trade was admittedly OK
panding in all directions, and the extra
ordinary activity in the iron and steel
trade especially was of great force as an
index of prosperous Industrial conditions
as a whole. Unprecedented bank clear
ings were clear proof of the large volume
of business and the enormous outlay In
progress by the railroads. and plans fol-
still further expansion In the future wit
messed a confidence in the permanency oil
growing requirements on the part of those
intrusted as the most competent judges
of the course Of business.
With the demand for money almost
nominal from day to day loans there
was a profit in buying stocks with Dor
rowed money on which the dividend re.
turn, even at the reduced rate on pres
ent high prices was sufficient to pay
carrying charges on margin In addi-
ton, While this condition lasted. small
price huctuations would be regarded will
much greater tranquility than where tho
profit on rise was alone relied upon
Many of these holdings also were acquired
at an early stage in the rise. and offer.
ed a wide enough profit to afford abund
ant opportunity to get out without loss
Even when the rise in call money modi.
fed this condition. there was manifest
restraint in the reaction. and the resist.
ing power of the market was notable
This attitude is partly due to the belief
that the furry I'm call money is temper.
airy and due to the payment of s pei
cent of government deposits with nationa
banks which was made on the 18th In re.
Spouse to local demands
The bond market has been less active
and there has been no notable advance
In prices Of railroad mortgages
United States bonds were all unchanged
on call on the week.