The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-18
| FALLING PRICES DUE
TO LIQUIDATION
Close Weak With Call Money
at 20 Per Cent
ST. PAUL STILL BUOY ANT
Upshoot Fails by Sympathetic Effect
On Market-Fears of Corner Had
to Do With Selling
Movement.
ST. PAUL STILL BUOY ANT

New York, December 1.-THE stock
market was subjected to considerable
liquidation today, and a fall in price
was the consequence. There was evidence
OF relief from the process and tendency
towards recovery in the intervals of the
active dealing, but the closing was weak,
with call money at 20 per cent. Various
explanations were current of the weak
ness which partly represented the conjec-
lures of traders to account for the fact
of the selling, which was obvious.
The buoyant upshoot of st. Paul. which
was explained in the proposed stock in
creases later, not only failed of SYM
pathetic effect on the market, but was
disquleting owing to- signs of urgent bor-
rowing demand for the stock in the loan
crowd, which suggested the existence OF
a short interest in distress. The stock
+ was reported at one time to be loaning
. fiat in spite of the stiff money rate. The
price ran up. to within a shade of 200 and
eclipsed the previous record price of 1855,
reached September, 1902 Fears of cor
ner in st. Paul had to do with the first
selling movement of the day.
The action of the money market proved
] disappointing at first. In spite of the
I Saturday bank statement still showing
deficit the hope was entertained that the
treasury relief measures, and the receipt
of checks for large payments made Sat
urday would cause prompt relaxation to-
day. When money went to IA per cent
early in the day, the effect was chilling
to speculative sentiment. Later there was
( some relaxation apparent in the call
money market until the final furry to the
/ highest of the day. The time money mar
ket remained strong with very little Of
fered Discounts rose also in London and
Berlin, the strength of the market at the
4 latter points arousing fears of a coming
rise in the official discount rate of the
Il Imperial Bank of Germany. The Bank of
81 England secured all the South African
gold arriving in the London market
4nmounting to some 100000, but $l,2500O0
was withdrawn for shipment to Egypt.
~ The Hill stocks were weak again, in
Contrast to st. Paul, and the subscrip-
Htion rights both for Great Northern pre-
4ferred and Northern Pacific new stock
ztfell sharply in the outside market. This
kept alive the question of the ability of
3the market to absorb the very large cash
Tissues already made or in contemplation.
Subscription began today to the new $780,
100000 issue of New York Central stock,
for which the privilege remains open I'M
til near the end of the month. The Jam
uary settlements will call for larger dis
bursements than ever before, and bank
crs are inclined to proceed cautiously un-
til these payments are met. On January
] also the law calls for the final INSTALL
ment of ! per cent to trust company re-
serves which will bring the cash holdings
in their own vaults up to 5 per cent of
the deposits. The 1 per cent addition
would call for some Sl0,000.00O and the
precedent of the formsr installments
shows that the larger part of the sum
was withdrawn from the banks.
The discussion of the ear shortage on
the railroads, especially those in the
west gave evidence of increasing acr-
mony. and attention was attracted to the
opinions attributed to members of the
interstate commerce commission that
Faults of operation by the railroads were
responsible as much as actual shortage
of equipment Reports of the intended
Introduction of bill in Congress to pro-
vide for the forcible breaking of car
freight blockades by government inter-
yention had some depressing effect In the
market. Sterling exchange moved upwards
with a demand said to be due to prepa-
rations for year end remittances abroad.
Reading was especially weak because of
questioning of recent predictions of an in
crease in the dividend rate at the next
meeting.
Bonds were heavy. Total sales, par
value, $1,6O60O0.
United States Is advanced Is per cent
on call.