The Birmingham age-herald., 1905-03-26

ket that this process of delayed payment on foreign purchases of securities is the principal factor in the present sharp downward tendency in the prices of for eign exchange. London discount hardened today and sterling rates declined at Ser lin. The total shares of bonds, par value, $2, 55O, 000
 Stocks have been frequently liquidated during the past week, and the decline in prices which was extended by the manip- uative effects of the bears curbed tho turning of stop loss orders and forced offerings upon the market by impairment of margins.
 The reaction was regarded with conn placence as normal after the extent to which the previous rise had run contin- ueusly and the shaking out of the weak accounts held for purely speculative pur- poses was felt to add to the health and soundness of the market. The rectitica- tion of some of the excesses in the price level which had resulted from the un- bridled enthusiasm of the speculative temper on the advance was accepted with satisfaction. A quieting of the mar ket for stocks at this season of the year is, according to precendent, owing prin- cipally to the reasonable demands upon New York money market for the. spring requirement of the interior trade. There have been some holding of securities in- duced by the merely nominal rates of interest which have ruled for today's funds, the rate of return on securities low as it has fallen at the high level Of market prices, affording a margin of profit over the carrying charges.
 The advance in the call loan rate from ? per cent or below to above per cent, was sufficient to prompt the closing out of some such accounts without causing any fears of what would be called money stringency The high level of prices for stocks ruling which offered a handsome profit on such holdings, as was acquired in the early stages of the advance. was ar additional incentive to convert these holdings into cash. While the supplies in the money market was not greatly re- stricted leaders were less inclined to en- courage borrowing for speculative pur- poses and expected somewhat closer se- curity for the collateral offered for such loans There can be little doubt that this condition lay back of the reaction in stocks. With the reaction in force there came also the natural shift in the spec ulative temper in the mood which events were accepted.
 There was little change in the events themselves, operators watching market transactions closely from hour to hour though they detected selling for account of the same parties of capitalists whose previous buying they had attributed to accurate information of the coming com missions, dividend increases and other similar factors which have been potent to lift long time past. The denials and disclaimers of these rumors which came out although having no greater color than those which appeared during the progress of the excited buying. acquired new credit with the selling in evidence and prevailed the market followers of the movement to unload their hold ings
 There was a large element whose selling during the week was no better inform cd than th .r buying had been and the action of the market threw little addi- tional light on the question of the reality or falsity of the reports long current of great projects working out in the railroad world. That the stories still have vital ity was clesriy shown by their renewed influence in railing the market after the liquidation had spent it's force Another effective factor in rallying the market was the course of the foreign exchange market which offered abundant evidence that recourse was open to foreign money markets to supply any needs of our money market. The large falling off in late months in the trade balance in our favor had left this open to some question. But it is now evident that the usually heavy reserves of foreign money markets will include supplies to New York on demand. The growth of a belief in coming peace adds to the relaxing tendency of foreign markets. News of the week has yielded the placing of large blocks of new bond issues with foreign purchasers
 Another method of relief for the local money market has been the transfer of stock holdings to London to be held there for account of American operators with funds borrowed in the cheaper London market. Foreign banking houses have also lent money in New York through the medium of the exchange market. The allotment of full half of the new $ 5o,- coo 900 Japanese loan to American sub scribers is accepted as a striking demon stration of the abundant capital resources of our markets in spite of the present expansion in our money requirements. The routine news of the week has shown no change in the highly prosperous and ex- all lines which form the underlining sup port for the securities market.
 The shrinkage In the demand for bonds has been more comprehensive than in the stock market and is regarded as sig nifcant of the money situation. United States old As and the new As advanced Hs. the new 3s A the 2s ss and the 3s coupon ga per cent on call during the week
 Money on Call.
 New York March o5-Monav or caU