Omaha daily bee., 1905-12-08
NEW YORK STOCKS AND BONDS
Larket Struggles Against a Severe strin-
genOy in the Money Supply.
CALL RATE RISES TO % PER CENT
values Drop from One TO Two
Points Early in session,
but Rally and Close
strong.

NEW YORK, Dec. THE stock market
struggled against the severe stringency IN
out serious damage to values, after the
period of greatest weakness In the morning.
In fact there were general recoveries under
Tennessee Coal and vigorous upward move
ments in other special stocks
Money on call was quoted as high as 2S
per cent thus rising above the previous
maximum for the year, touched last
month. TToday's high rate in fact,
October, 1902. The behavior Of the
stock market now and then afforded
as stringent as those today could not fail
to depress the stock market. But general
subject of comment was the slightness of
stances. Losses at the extreme low level
OF the day were not excessive in any
stocks. II was notable also that they were
quite uniform between 1 and points.
Where the losses ran beyond the average
they were not found in the stocks which
have been subject to the greatest specula~
tive activity in the immediate past. IN fact
these shares were conspicuously exempt in
the unfavorable effect of the very high
rates for money. The deductions drawn
from this state of affairs were that the
organized speculation which has been con-
Quoted for some time past had provided
itself largely with time loans before the
scarcity developed in the money market.
The absence of forced liquidation at the
! lions of the past few weeks is capable
, OF no other explanation. The small effect
produced on the general market warrants
the deduction also that the general outside
participation in the speculation on tine part
OF operators dependent on the ordinary re-
sources Of the money market must Le small
| This is in strong contrast with the sDecula-
| tive position of 1902 when enormous COM
| mlttments had been in the market in disre-
! gard OF the incoming reaction In business
and severe stringency developed in the
| money market What was known as the
rich mems panic or the slow panic fol-
position that the identity of this year
| speculative organization is the same at
many points as that of 1902. The difference
| In the situation lies in the unclouded out
| look for conditions underlying values and
/ the provision of credits beforehand for the
| on cash reserves is quite sufficient to ex-
! plain the degree of stringency in the money
market, but there can be no doubt that
the quality of some, of the collateral offered
| for loans, especially some of the stocks
| which have undergone great imitation In the
speculation, has figured in the making of
The stringency in the call money market
induced decided stiffness in the time money
| market. There was evidence of a large
movement of funds towards this center re-
ports indicating a receipt of at lea st
100000 from Canadian sources. The
sterling exchange rate also fell TO below
NS6, which Is lower than the point touched
! during the last imports of gold. THIS led
| 10 Keen expectation of gold engagements.
| me replenishment of the London market
| by heavy payments for redemption of ex-
chequer bonds was looked TO to facilitate
made. w."
The closer working OF money in other
departments than the purely speculative
reaWakened the expectation that the secre-
| tafy or the treasury would be moved 10
| take some measure of relief for the money
| market which he had refused to do SO
! long as purely speculative requirements
| were restricted. Confidence that such
action was imminent had much to do with
| the late rally in stocks Tennessee Coal
was especially affected by the confictine
reports that control had been secured OF
the company in the open market, which re-
| ports were not admitted by present con
| ironing interests. These contributions
FORCED the belief In a possible severe CON
test IN the open market for the balance OF
the control, with the possibility that the de,
nvefles OF short stock already made rlnight
preclpltate corner. Kansas CITY Soutberu
preferred responded to rumors of a diyidenc
ana other stocks, with Identical centroIlins
ihh.erests, were affected In sympathy
AmaIgamated Copper showed resistant
throughout and was prominent in The
strong rally at the close The whole mar.
ket closed strong and with the earlier losses
almost universally changed to VARYING
40 Bonds were heavy. Total sales. mar value
3I9o,OOO United States new Is reEistereJ
oeellned u and new 2s. coupon, a per cent
The quotations on the New York Stool
exchange ranged as follows: ''O'N