The daily morning journal and courier., 1906-12-06
Continued on TweI..h Pase.
YE91EED4T7S S10CA N1EKG7 '

Reflects Clearly Difficulties of Specula-
 tors Carrying Stocks With Borrowed
 Money.
 New York. Dec. 5.-The stock mark
 ct struggled with the money ttringen-
 cy to-day but reflected clearly the dif- faculties of the situation for s9ecula-
 tors who are carrying stocks with
 borrowed money Loans were called
 from time to time on a large scala by the banks to reduce their da9os!t lta-
 bility in the measure of the heavy drains tha twere making on their cash reserves. Occasional liquidation was forced by this process. The appear ance of the annual report of the sec retary of the treasury was the signal for a comprehensive recovery of de- clines leading to a halt in the market at about last nights level The re- covery was based on the assumption that the secretary stood ready to take steps to relieve the money stringency in accordance with the strongly ex- pressed views in the annual report If the duty incumbent upon him to de- posit in the banks as much as can possibly be spared of Iiurplus funds in the treasury, if business conditions require it, though it becomes neces- sary to pay the current expenses of the government with checks on deposi- tcry banks" But while thl2 language was accepted as an earnest of early action for the relief of the money market, the relief was not announced and the calling in of loans was an actual situation The fact that money conditions abroad also began to t~ht- en again was regarded as an addition al factor in favor of probable action by the treasury department as the secretary was almClt as emphatic on the necessity to the passage in the report which said: "The United States can ill afford to disturb financial con- ditions in Europe and if necessary to prevent it, the present head of the treasury department would not hesi- tate to make deposits in national banks on condition that the hanks in turn deposit an equal amount abroad That the course of money in New Yorl. and the resultant effect on the exchanges has been tending towards the further withdrawal of gold from London in the fear of the London market New York Central was tem- porarily strong on the increase in the dividend rate, which conformed to ex- pectation. Limitations of additional capital issues by AtchiEbn and by Nor folk and Western foreshadowed the future requirements from this cause on the money market, which are ex- pected to grow. The urgency with which new capital continues to be sought in spite of the difficulties of the money market gives an impression of undiminlshed confidence in the per- manency of the needs which are sought to be supplied by this outlay. The effect is to confirm hopeful sen timent over the outlook for values. This sentiment was apparent, in fact. stocks yielded to the money market in- conyeniences. The dull and obstinate resistance was shown up to the cl9s- ing The 32 per cent. call loan rate is the highest since the first week in September, when money went to 40 per cent. and the banks reported a deficit at the end of the week
 Bonds were irregular. Total sales par value, $2,050,OOO
 United States As registered advanced 1-4 per cent, on call.