The Montgomery advertiser., 1906-10-04
THE STOCK MARKET
THERE WAS LARGE SPECULATION II
STOCKS.
Sentiment Over the Motley Outlook Il DIE
tinctly Brighter-More Gold Bars
VIII be Brought From
l. London. 8

New York. Oct 3.--There was large spec
ulation In stocks again today. but the
movement was constantly shifting. There
was palpable effort to divert the specu-
lation into some Of the low priced stocks
strength. The movement, however, lack
ed spontanety. and was clearly due to pro-
fessional initiative based on technical con-
siderations rather than on actual develop
mems regarding these properties.
1t was plausibly argued however chat
this class of securities has never advanced
in proportion to the wide advances In the
high priced stocks in spite of the share Of
these companies in the increased earnings
common to the railroad system OF the whole
country. Market operators are attracted
by the argument also that carrying charges
on the low priced stocks are less owing to
ing on these stocks. This argument has
special force during aperiod of tightness OF
money and particularly at a period when
customers OF brokerage houses are recetv
ing statements Of accounts for September
with charges to interest account owing to
the high money rates which make notable
impairment OF prices.
This factor is believed to prompt some
OF the recent pressure on the market in
spite Of the improvement in the immediate
reveals, however, the continued preponder-
ance of speculative favor towards high
priced railroad stocks and even in this
disproportionats congestion In small mum
Der Of them. Atchison was this conspic-
uous figure in the days dealings and SUI
fered severely from the resolution OF the
doubts over the dividend question by the
declaration Of ahc semi-annual dividend
The weakness ofstocks in the face OF an
increase form o four to five per cent div
idend basis was accepted as striking les
son of the speculative disposition to excess
sive anticipations Of favorable events. There
have been vociferous assurances about the
stock exchange for many days that six
per cent rate was definitely determined
.
wholesale speculative liquidation was the
consequence when the dividend action De.
came known the still undisclosed details Of
control Of St Paul and Of the new holding
company for the coal properties proved to
be factors.
Sentiment over the money outlook is dis
tinctly brighter. The subsistence OF the
import movement Of gold Is felt to be due
to the present satisfaction Of requirements.
1t was reported from oLndon that late
engagement Of gold bars at the Bank OF
England for New York account had been
consolidated. This caused revision OF
yesterdays views Of the certainty ~ an ad-
vance in the Bank of England rate tomor-
row, and discounts were easier In London
today, though still ruling above the Bank s
official rate San Francisco made larger
remittance here through the sub-treasury.
but $500. 1000 was transferred through that
medium to New Orleans.
The market did not fully recover at any
time from the break in Atchison. WHICH
dropped from 1oS% in the morning to
Reading ran off to 1903 in the late deal
ings after having sold at 154b In the
morning. the closing of the market became
weak all around.
Bonds were irregular. Total sales, par
value s2,s74.0O0. United States bonds were
unchanged on call.
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