The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-11-25
BREAK IN STOCKS
IS CONSIDERABLE
Particular Damage TO Trans
continental Railroads
SPECULATION IOVERDONE
Action of Great Northern Preferred
Since Announcement of Participa-
ton Plan Causes Uneasiness.
Prosperity Is Mainstay.

New York, November PA long move
ment in speculative accounts developed in
the stock market today which attained
considerable proportions during the
course of the two-hours' session. Par
ticular damage was done to prices of
transcontinental railroad stocks owing to
extensive advances which had occurred
previously in their prices.
The action of Great Northern preferred
since the announcement of the plan of
participation in the ore contract rights,
and the course of the quotation for the
rights when issued in the curb market,
have had a bad effect on speculative SEN
timent. The evidence that speculation had
been overdone in that case arouses I'M
easiness over the outcome of other spec
ulative factors, which have been followed
with confidence on very vague informa-
ton.
Some apprehension finds expression over
| the adjustment of loans in which Great
Northern preferred figures as collateral
when the ore rights come off the stock.
| a sudden rumor having found circulation
| that banks will require additional col
lateral and will be unwilling to accept
the beneficiary contracts to make up the
| gap, owing to inactive markets which
| may exist for them when separated from
| the stock itself.
The consideration of recent wide de-
cline in Standard Oil in the outside mar
ket had an important effect on specula-
| tive sentiment, although that stock was
supported today. The bank statement was
stronger than was expected in the mat
er of cash gained, the addition to re-
| serve reaching nearly 100000 against es-
| Inmates which did not reach a million for
the maximum.
The $4,OOO000 loan expansion in face of
the supposition that interior banks were
lending freely here during the week was
not so well liked. The market rallied on
the appearance of the statement but the
higher prices induced resumption of the
liquidation and caused the severe break
in prices, from which there was only
slight recovery. Closing was weak
Total sales of bonds, par value $4,000.
The week in the stock market started
out confidently under the influence of
good bank statement of last Saturday.
and the evidence of forces at work for
the further amelioration of money. The
course of the money market subsequently
unsettled this confidence TO some extent
| and led to an irregular and spotty stock
market.
A number of comparatively obscure
stocks were sprung into prominence and
| rushed UP in a sensational manner with
| out any ineligible explanation, and this
| had the inevitable effect of arousing sus-
| picion of manipulation. Distribution of
! speculative holdings was clearly dis
| tinguished in some of the recent specula-
| tive favorltes, although there were vigor-
| Gus advances in others. The attraction of
| the profits resulting from the rise in
prices of the previous week induced the
realizing and bore heavily upon the mar
l1et. The varying fluctuations were close
| ~ In accord with the course of the money
market, and conditions there evidently
had an important bearing on speculative
sentiment.
On the side of the foreign money mar
kets the course of events was favorable.
| Almost equal Importance is attached to
| foreign and domestic money conditions in
| this market, owing to large indebtedness
| of New York abroad. A movement of
gold from Paris to London, therefore,
was regarded with satisfaction here ow-
ing to the promises of assistance thus in
dicated to the efforts of the Bank of
England authorities to replenish it's re-
serve and prepare for the year and de-
mand upon its resources without advance
ing its discount rate to 7 per cent If
that action should be found necessary it
be dis1odged in London and our own year
end money markets embarrassed.
The policy of the Bank of France in
rellnquishing gold to the London market,
therefore, has an important bearing on
the outlook in New York. In New York
the easing tendency of money which de-
veloped last week has been reversed and
rates have hardened, especially those for
time loans on which premiums have been
re-establshed after having been practical
ly wiped out with the opening of the
week.
The high call money rate of the first
week attracted some large offerings from
out of town lenders and readjustment
of loans of large estate was reported to
have brought some new funds onto the
market and the demands of the revived
speculation seemed sufficient to absorb
these supplies. This action of the money
market aroused fears that available funds
would not be sufficient to carry success
fully any active speculative movement.
The question of satisfaction over interior
demand for currency was also brought
into doubt by the movement of interior
exchanges. New York exchange at Chi