The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-21
PRICE RECOVERY
WAS DESUL TORY
Business Not Half as Large as
on Wednesday
CALL MONEY GROWS EASIER
CALL MONEY GROWS EASIER
Nothing Further Was Heard of Yester
days Rumors of Further Assistance
for the Money Market From
the Treasury Department.

New York, December M.-The stock
market today gave evidence Of subsistence
of the pressure of liquidation, which was
SO strongly manifest yesterday. There
was a desuitory recovery in prices on u
volume of business less than half thar
of yesterday. In the latter Stage OF tae
trading the market became practically
stagnant. This is one Of the various
signs that the strength of the market was
not due to an important re-entry to the
market on the long side Stocks which
were weak yesterday We're the principal
gamers in today's movement, while those
that offered firm resistance to yesterday
weak break moved but narrowly in The
upward turn of prices today. The infer
ence suggested is the large responsible
ty of buying to cover shorts by profess
sional bears for the demand which lifte2
prices. The hasty unloading of the Hin
stocks and of st. Paul seemed to have
come to an end and the market was
much relieved from a depressing sympa-
thetie influence by this. Discussion OF
the unsuual manner of the st. Paul STOCK
issue continued very active and the ques-
ton was canvassed whether the weak
ening effect produced on the stock mar
ket by the announcement was by desiga
or was an unforeseen supplement TO the
action.
The easing of the call money market
put an end to the forced selling Of stocks
by withdrawal of credits rhe early rate
for call loans was as high as 16 per cent
but the rate receded to 10 per cent before
noon and to per cent afterwards. THIS
result was plainly due in an important
degree to the liquidation effected in the
stock market, especially yesterday. Ire
result was seen in the number of broHsts
who were paying off loans, having sod
their stocks. An effect was produced on
the tone of the money market by the an
nouncements of railroad companies that
they would prepay dividends and interest
on January |, anticipated prior to that
date and following. owing to the example
of the New York Central announced yes
terday.
The st. Paul, and Chicago and North
western companies took similar action to-
day. This money is not Immediately
available to the money market, but the
assurance that it would be before Janu-
airy had a soothing effect on sentiment
Nothing further was heard of yesterday S
rumors of further assistance for. the
money market from the treasury depart
ment. There was report circulated that
the banks had the countenance of WASH
ington authorities for an encroachment
upon their reserves in an emergency, with
the implied assurance that additional gov
eminent deposits might be regarded as a
potential safeguard for the situation. The
effect of the treaury measures already
adopted still made d meagre showing n
New York The gain of the banks from
the sub-treasury for the bank statement
week has reached s4,66S000 and the gov
eminent institution was a debtor at the
clearing house today for 81 097 9S5, TIE
weekly return of the Bank of EnglaHl
made it evident why withdrawal of sold
from London for New York account
would force an advance in the official
discount rate With loan expansion Of
over $4,000 600, and a decrease in bullion
holdings of over s19.0O0,000. the proportion
of reserve 10 liability is reduced for the
week from 47.02 per cent 10 3S.54 per CEN.
The weekly statement of the Bank NJ
Franch also was weaker. but that inst
tuition parted with additional gold hold
ings for the relief of the English bank
Nearly 100000, however. left the Eng
fish bank for South America. II was re-
garded in some degree as character lstic
OF the recent contrety of such speeui =
tive sentiment that Reading should al
vance on the failure to raise the dividend
rate, although confident assertions had
been circulated that this was to he dore
Louisville and Nashville was more VAL