The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-25
FURTHER SHRINKAGE
IN PRICES f.. TOCKS
Some Slight Recovery and Later
Another Relapse
TECHNICAL POSITION WEAK
Profound Neglect Partly Due to Holt
day DuIIness-seIllne Believed to
Come From Pools and
Strong Operators.
TECHNICAL POSITION WEAK

New York, December 24.-There was
q further shrinkage in the price of stocks
today followed by some recovery and a
late relapse again. The demand became
stagnant at the recovered levels. 1 was
the common belief that such buying as
was done at the lower levels was large
" for the short account and represented
the taking of profits by the bears. These
profits on the short side have reached at
tractive proportions in the course of the
recent decline, but the closing out of these
short accounts deprived the market of i
source of potential support. and leaves
it correspondingiy weaker from a tech
nical standpoint.
Some part must be allowed to the eve
of the holiday for the profound neglect
into which the market fell in the late
trading Many brokers left the street at
an early hour in the afternoon to get
away for the Christmas celebrations out
of town. The rush of liquidation dur
ing the first hour carried prices down.
ward with an ugly significance. The
rallies were on meagre dealings. and
were in effect a price re-adjustm to
take advantage of the cessation of more
urgent selling pressure A notable fea-
ture of the drop in the prices was the
comparative ease of the call money mar
ket during the period of weakness in
stocks.
The rate ran off below per cent by
noon and was not above S1a per cent early
yet the liquidation was believed to be
due to the money situation more than
to anything else 1t was believed also to
come from a wealthy class of spectators
who were irhpervious to the effect of the
recent money f1urries. The failure of the
present superficial ease to relieve them
from the necessity of reducing holdings,
is the more remarkable
It is suspected that provision is being
made for expected future necessities
rather than for urgent present needs. The
beginning of the London settlement was
an important influence on the market.
owing to very high charges for carrying
over Americans into the next settlement.
These reached as high as 70 per cent.
1t is reported that at the last London
settlement there was a very large ex-
tension of the account in Americans to
take advantage of the then easier rates
for money in the London market.
Today's high charges dislodged some of
TRACE houses against the sales in Lon
don was a large factor in the weakness
here. Saturdays break in prices also had
the effect of inducing large calls for
additional margins. and where these were
not responded 70, holdings were sold out.
The weekend reviews induced some
liquidation of long accounts on a gen
eral view of the outlook. The action
of the Hill stocks and st. Paul has in
duced an impression that inside invest
ment holders of those stocks are dissatis-
fled with the terms of the new stock
holders of those stocks are dissatisfied
with the terms of the new stock and are
reducing their holdings on a scale very
unusual with the conservative holdings
in those companies
The necessitious liquidation, although
comparatively small. was of aggravated
effect on prices, owing to the paralysis
of the demand The selling was believed
to come from pools and strong operators
whose supporting measures have formed
the only substantial basis for holding
prices. With this element forced to the
selling side of the market. it's material
character is disclosed. Sterling exchange
declined in spite of the easier money
market here and London showed itself
solicitious over money market develop
ments.
Bonds were heavy.
The total sales of the day were. par